SLS 13RS-89 ORIGINAL Page 1 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2013 SENATE BILL NO. 111 BY SENATOR ADLEY Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. FUNDS/FUNDING. Constitutional amendment to provide for thresholds at which certain funds and allocations are subject to reduction or transfer to eliminate a projected deficit in a fiscal year. (2/3 - CA13sl(A)) A JOINT RESOLUTION1 Proposing to add Article VII, Section 10(F)(4)(h) and to amend Article VII, Section2 10(F)(2)(a) of the Constitution of Louisiana, relative to the expenditure of state3 funds; to provide for the procedures to eliminate a projected deficit in a fiscal year;4 to exclude the Transportation Trust Fund from funds subject to adjustments in the5 event of a projected deficit; to provide for related matters; and to specify an election6 for submission of the proposition to electors and provide a ballot proposition.7 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members8 elected to each house concurring, that there shall be submitted to the electors of the state, for9 their approval or rejection in the manner provided by law, a proposal to add Article VII,10 Section 10(F)(4)(h) and to amend Article VII, Section 10(F)(2)(a) of the Constitution of11 Louisiana, to read as follows:12 ยง10. Expenditure of State Funds13 * * *14 (F) Projected Deficit.15 * * *16 (2)(a) Notwithstanding any other provision of this constitution to the17 SB NO. 111 SLS 13RS-89 ORIGINAL Page 2 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. contrary, adjustments to any constitutionally protected or mandated allocations or1 appropriations, and transfer of monies associated with such adjustments, are2 authorized when state general fund allocations or appropriations have been reduced3 in an aggregate amount equal to at least seven-tenths of one percent of the total of4 such allocations and appropriations for a fiscal year. Thereafter, any reductions5 necessary to eliminate a deficit in a fiscal year shall be accomplished to require6 the same pro rata reduction to any constitutionally protected or mandated7 allocations or appropriations, and transfer of monies associated with such8 adjustments, as well as to any fund established by law, and transfer of monies9 associated with such reductions, as shall be done to the state general fund10 allocations or appropriations to eliminate the projected deficit. Such11 adjustments may not exceed five percent of the total appropriation or allocation from12 a fund for the fiscal year. For purposes of this Subsubparagraph, reductions to13 expenditures required by Article VIII, Section 13(B) of this constitution shall not14 exceed one percent and such reductions shall not be applicable to instructional15 activities included within the meaning of instruction pursuant to the Minimum16 Foundation Program formula. Notwithstanding any other provisions of this17 constitution to the contrary, monies transferred as a result of such budget adjustments18 are deemed available for appropriation and expenditure in the year of the transfer19 from one fund to another, but in no event shall the aggregate amount of any transfers20 exceed the amount of the deficit.21 * * *22 (4) The provisions of Subparagraphs (1) and (2) of this Paragraph shall not23 be applicable to, nor affect:24 * * *25 (h) The Transportation Trust Fund as created under the provisions of26 Article VII, Section 27 of this constitution.27 * * *28 Section 2. Be it further resolved that this proposed amendment shall be submitted29 SB NO. 111 SLS 13RS-89 ORIGINAL Page 3 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. to the electors of the state of Louisiana at the statewide election to be held on November 4,1 2014.2 Section 3. Be it further resolved that on the official ballot to be used at said election3 there shall be printed a proposition, upon which the electors of the state shall be permitted4 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as5 follows:6 Do you support an amendment to provide that after state general fund7 appropriations or allocations have been reduced by seven-tenths of one8 percent to eliminate a projected deficit in a fiscal year, any further reductions9 shall require the same pro rata reduction to any constitutionally protected or10 mandated allocations or appropriations and any fund established by law as11 shall be done to the state general fund allocations or appropriations to12 eliminate the projected deficit; and to exclude the Transportation Trust Fund13 from funds subject to adjustments in the event of a projected deficit?14 (Adds Article VII, Section 10(F)(4)(h) and amends Article VII, Section15 10(F)(2)(a))16 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Jay R. Lueckel. DIGEST Present constitution provides that notwithstanding any other provision of this constitution to the contrary, adjustments to any constitutionally protected or mandated allocations or appropriations, and transfer of monies associated with such adjustments, are authorized when state general fund allocations or appropriations have been reduced in an aggregate amount equal to at least seven-tenths of one percent of the total of such allocations and appropriations for a fiscal year. Proposed constitutional amendment provides that, thereafter, any reductions necessary to eliminate a deficit in a fiscal year shall be done to require the same pro rata reduction to any constitutionally protected or mandated allocations or appropriations, and transfer of monies associated with such adjustments, as well as to any fund established by law, and transfer of monies associated with such reductions, as shall be done to the state general fund allocations or appropriations to eliminate the projected deficit. Present constitution further provides that such adjustments may not exceed five percent of the total appropriation or allocation from a fund for the fiscal year. Reductions to expenditures required the Minimum Foundation Formula shall not exceed one percent and such reductions shall not be applicable to instructional activities included within the meaning of instruction pursuant to the Minimum Foundation Program formula. Notwithstanding any other provisions of this constitution to the contrary, monies transferred as a result of such SB NO. 111 SLS 13RS-89 ORIGINAL Page 4 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. budget adjustments are deemed available for appropriation and expenditure in the year of the transfer from one fund to another, but in no event shall the aggregate amount of any transfers exceed the amount of the deficit. Proposed constitutional amendment retains present constitutional provisions. Present constitution provides for six exceptions from the provisions relative to allocations or appropriations subject to adjustments in the event of a projected deficit. Proposed constitutional amendment extends an exception to the Transportation Trust Fund. Specifies submission of the amendment to the voters at the statewide election to be held on November 4, 2014. (Adds Art. VII, Sec. 10(F)(4)(h) and amends Art. VII, Sec. 10(F)(2)(a))