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Regular Session, 2014
SENATE BILL NO. 145
BY SENATOR CROWE
FUNDS/FUNDING. Constitutional amendment to authorize limited redirection and transfer
of funds supporting appropriations and allocations from the state general fund and dedicated
funds in certain circumstances. (2/3-CA13s1(A))
A JOINT RESOLUTION1
Proposing to amend Article VII, Section 10(F)(2)(a) and (b) of the Constitution of2
Louisiana, relative to the expenditure of state funds; to authorize the limited3
redirection and transfer of funds supporting appropriations or allocations from the4
state general fund and dedicated funds, including those constitutionally protected or5
mandated, to be used for other nonmandatory purposes under certain circumstances;6
and to specify an election for submission of the proposition to electors and provide7
a ballot proposition.8
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members9
elected to each house concurring, that there shall be submitted to the electors of the state, for10
their approval or rejection in the manner provided by law, a proposal to amend Article VII,11
Section 10(F)(2)(a) and (b) of the Constitution of Louisiana, to read as follows:12
ARTICLE VII13
ยง10. Expenditure of State Funds14
Section 10.15
* * *16
(F) Projected Deficit.17 SB NO. 145
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* * *1
(2)(a) Notwithstanding any other provision of this constitution to the2
contrary, adjustments to any constitutionally protected or mandated allocations or3
appropriations, and transfer of monies associated with such adjustments, are4
authorized when state general fund allocations or appropriations have been reduced5
in an aggregate amount equal to at least seven-tenths of one percent of the total of6
such allocations and appropriations for a fiscal year or when there is a decrease in7
recurring federal financial participation in state assistance expenditures for8
nondiscretionary state general fund expenditures. Such adjustments may not9
exceed five percent of the total appropriation or allocation from a fund for the fiscal10
year. For purposes of this Subsubparagraph, reductions to expenditures required by11
Article VIII, Section 13(B) of this constitution shall not exceed one percent and such12
reductions shall not be applicable to instructional activities included within the13
meaning of instruction pursuant to the Minimum Foundation Program formula.14
Notwithstanding any other provisions of this constitution to the contrary, monies15
transferred as a result of such budget adjustments are deemed available for16
appropriation and expenditure in the year of the transfer from one fund to another,17
but in no event shall the aggregate amount of any transfers exceed the amount of the18
deficit.19
(b) Notwithstanding any other provision of this constitution to the contrary,20
for the purposes of the budget estimate and enactment of the budget for the next21
fiscal year, when the official forecast of recurring revenues for the next fiscal year22
is at least one percent less than the official forecast for the current fiscal year or23
when there is a decrease in recurring federal financial participation in state24
assistance expenditures for nondiscretionary state general fund expenditures,25
the following procedure may be employed to avoid a budget deficit in the next fiscal26
year. An amount not to exceed five percent of the total appropriations or allocations27
for the current fiscal year from any fund established by law or this constitution shall28
be available for expenditure in the next fiscal year for a purpose other than as29 SB NO. 145
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specifically provided by law or this constitution. For the purposes of this1
Subsubparagraph, an amount not to exceed one percent of the current fiscal year2
appropriation for expenditures required by Article VIII, Section 13(B) of this3
constitution shall be available for expenditures for other purposes in the next fiscal4
year. Notwithstanding any other provisions of this constitution to the contrary,5
monies made available as authorized under this Subsubparagraph may be transferred6
to a fund for which revenues have been forecast to be less than the revenues in the7
current fiscal year for such fund. Monies transferred as a result of the budget actions8
authorized by this Subsubparagraph are deemed available for appropriation and9
expenditure, but in no event shall the aggregate amount of any such transfers exceed10
the amount of the difference between the official forecast for the current fiscal year11
and the next fiscal year.12
* * *13
Section 2. Be it further resolved that this proposed amendment shall be submitted14
to the electors of the state of Louisiana at the statewide election to be held on November 4,15
2014.16
Section 3. Be it further resolved that on the official ballot to be used at said election17
there shall be printed a proposition, upon which the electors of the state shall be permitted18
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as19
follows:20
Do you support an amendment to authorize adjustments of up to five percent of21
constitutionally protected and mandated allocations and appropriations if aggregate22
reductions of seven-tenths of one percent of allocations and appropriations from the23
state general fund have been made or when there is a decrease in federal financial24
participation in state assistance expenditures for nondiscretionary state general fund25
expenditures; and to authorize, for the purposes of the budget estimate and enactment26
of the budget for the next fiscal year, that if the official recurring revenue forecast27
for the next fiscal year is at least one percent less than the forecast for the current28
fiscal year or if there is a decrease in federal financial participation in state assistance29 SB NO. 145
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expenditures for nondiscretionary state general fund expenditures, an amount not to1
exceed five percent of the monies appropriated from any funds established by law2
or constitution shall be available for appropriation in the next fiscal year for a3
purpose other than as specified by law or constitution? 4
(Amends Article VII, Section 10(F)(2)(a) and (b))5
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha Hess.
DIGEST
Crowe (SB 145)
Present constitution authorizes the legislature to establish a procedure to determine a
projected deficit and a method for adjusting appropriations to eliminate the deficit.
Present constitution authorizes the governor, with legislative approval, to reduce up to five
percent of appropriations or allocations from the state general fund and dedicated funds in
any fiscal year in which a deficit is projected and reductions of at least seven-tenths of one
percent in appropriations from the state general fund have already occurred. Further provides
that such reductions to the Minimum Foundation Program (MFP) shall be limited to one
percent and shall not be applicable to instructional activities.
Proposed constitutional amendment retains present constitution and authorizes the reduction
in appropriations or allocations from the state general fund and dedicated funds when there
is a decrease in recurring federal financial participation in state assistance expenditures for
nondiscretionary state general fund expenditures.
Present constitution authorizes the legislature to reduce the monies appropriated or allocated
for mandatory expenditures or allocations by up to five percent, making those funds
available for other, nonmandatory expenditures if the official revenue forecast for the next
year is at least one percent less than for the current year.
Proposed constitutional amendment retains present constitution and authorizes the reduction
of monies appropriated or allocated for mandatory expenditures or allocations, making those
funds available for other, nonmandatory expenditures when there is a decrease in recurring
federal financial participation in state assistance expenditures for nondiscretionary state
general fund expenditures.
Specifies submission of the amendment to the voters at the statewide election to be held on
November 4, 2014.
(Amends Const. Art. VII, Sec. 10(F)(2)(a) and (b))