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Regular Session, 2014
SENATE BILL NO. 146
BY SENATOR CROWE
FUNDS/FUNDING. Authorizes limited redirection and transfer of funds supporting
appropriations and allocations from the state general fund and dedicated funds in certain
circumstances. (See Act) (2/3-CA7s10(F)(1))
AN ACT1
To amend and reenact R.S. 39:2(11.1), the introductory paragraph of 75(C), and the2
introductory paragraph of 75(E), and to enact R.S. 39:2(40.1) and 75(F), relative to3
the expenditure of state funds; to authorize the limited redirection and transfer of4
funds supporting appropriations or allocations from the state general fund and5
dedicated funds, including those constitutionally protected or mandated, to be used6
for other nonmandatory purposes under certain circumstances; to define recurring7
federal financial participation for certain circumstances; to define projected deficit8
for certain circumstances; to provide for an effective date; and to provide for related9
matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 39:2(11.1), the introductory paragraph of 75(C), and the introductory12
paragraph of 75(E) are hereby amended and reenacted, and R.S. 39:2(40.1) and 75(F) are13
hereby enacted to read as follows: 14
§2. Definitions15
As used in this Chapter, except where the context clearly requires otherwise,16
the words and expressions defined in this Section shall be held to have the meanings17 SB NO. 146
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here given to them.1
* * *2
(11.1) "Deficit" means the excess for any fiscal year of actual expenditures3
paid by warrant or transfer over the actual monies received and any monies or4
balances carried forward for any fund at the close of the fiscal year as such are5
reported by the office of statewide reporting within the division of administration.6
"Projected deficit" means the excess of appropriations and non-appropriated7
requirements over the official forecast for any fund during any fiscal year. For8
purposes of determining if adjustments to any constitutionally protected or9
mandated allocation or appropriation, and the transfer of monies associated10
with such adjustments, are authorized pursuant to Article VII, Section11
10(F)(2)(a) of the constitution and R.S. 39:75(C) and for purposes of12
determining if an amount not to exceed five percent of the total appropriations13
or allocations from any fund established by law or the constitution shall be14
available for expenditure in the next fiscal year for a purpose other than as15
specifically provided by law or the constitution as authorized in Article VII,16
Section 10(F)(2)(b) of the constitution and R.S. 39:75(E), "projected deficit"17
shall include a reduction in federal funds when such reduction requires an18
increase in state funding in order to maintain the current level of those state19
assistance expenditures for nondiscretionary state general fund expenditures.20
* * *21
(40.1) "Recurring federal financial participation" for purposes of Article22
VII, Section 10(F)(2)(a) and (b), means the receipt of federal financial23
participation which has been available for the preceding two fiscal years.24
* * *25
§75. Avoidance of budget deficits26
* * *27
C. Upon receiving notification that a projected deficit exists or that a28
decrease in recurring federal financial participation in state assistance29 SB NO. 146
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expenditures for nondiscretionary state general fund expenditures in the1
current fiscal year is causing a need to increase state funding to maintain the2
current level of those state assistance expenditures for nondiscretionary state3
general fund expenditures, the governor shall have interim budget balancing4
powers to adjust the budget in accordance with the following provisions:5
* * *6
E. If the official forecast of recurring money for the next fiscal year is at7
least one percent less than the official forecast of recurring money for the current8
fiscal year or if there is a decrease in the recurring federal financial9
participation in state assistance expenditures for nondiscretionary state general10
fund expenditures in the next fiscal year causing a need to increase state funding11
to maintain the current level of expenditures for those state assistance12
expenditures for nondiscretionary state general fund expenditures, the governor13
and the legislature may employ the following methods and procedures in the14
development of the state budget for the next fiscal year pursuant to authority granted15
in Article VII, Section 10(F) of the Constitution of Louisiana, for the purpose of16
avoiding a budget deficit in the next fiscal year.17
* * *18
F. The decreases in the recurring federal financial participation in state19
assistance expenditures for nondiscretionary state general fund expenditures20
shall be incorporated into the continuation and five-year base line budget21
projection for the next fiscal year as presented to the Joint Legislative22
Committee on the Budget.23
Section 2. Section 1 of this Act shall take effect and become operative if the24
amendment of Article VII, Section 10 of the Constitution of Louisiana contained in the Act25
which originated as Senate Bill No. of this 2014 Regular Session of the Legislature is26
adopted at the statewide election to be held on November 4, 2014, and at the same time as27
such proposed amendment becomes effective.28
Section 3. Sections 2 and 3 of this Act shall become effective on July 1, 2014. If29 SB NO. 146
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha Hess.
DIGEST
Crowe (SB 146)
Present law defines "proposed deficit" to mean the excess of appropriations and non-
appropriated requirements over the official forecast for any fund during the fiscal year.
Proposed law retains present law but provides that for purposes of determining if
adjustments are authorized by the constitution or statute, "projected deficit" shall include a
reduction in federal funds when such reduction requires a need for an increase in state
funding to maintain the current level of those state assistance expenditures for
nondiscretionary state general fund expenditures.
Present law provides that the division of administration shall submit a budget status report
monthly to the Joint Legislative Committee on the Budget which shall indicate the balance
of the budget for the state general fund and dedicated funds by comparing the official
forecast for these funds to the total authorized appropriations from each fund.
Present law provides that if the budget status report indicates that the total appropriation
from any fund will exceed the official forecast for that fund, the Joint Legislative Committee
on the Budget shall immediately notify the governor that a projected deficit exists for that
fund.
Proposed law retains present law and provides that if the governor receives notification that
a projected deficit exists for a fund or if there is a decrease in the recurring federal financial
participation in state assistance expenditures for nondiscretionary state general fund
expenditures in the next fiscal year causing a need to increase state funding to maintain the
current level of expenditures for those state assistance expenditures for nondiscretionary
state general fund expenditures, the governor shall have interim budget balancing powers
to adjust the budget.
Present law 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 law retains present law and provides that if the official revenue forecast for the
next fiscal year is at least one percent less than for the current year or if there is a decrease
in the federal recurring financial participation in state assistance expenditures for
nondiscretionary state general fund expenditures in the next fiscal year causing a need to
increase state funding to maintain the current level of expenditures for those state assistance
expenditures for nondiscretionary state general fund expenditures, the governor and
legislature may follow certain procedures to avoid a budget deficit.
Section 1 of the Act which authorizes the reduction of appropriations or allocations from the
state general fund and dedicated funds if there is a decrease in the recurring federal financial
participation in state assistance expenditures for nondiscretionary state general fund
expenditures, becomes effective and operative if the amendment of Article VII, Section 10
of the Constitution of Louisiana contained in the Act which originated as SB of the
2014 RS is adopted at the congressional election to be held on November 4, 2014, and at the
same time as such proposed amendment becomes effective. Sections 2 and 3 of the Act, SB NO. 146
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which are the effective date provisions, become effective on July 1, 2014.
(Amends R.S. 39:2(11.1), 75(C)(intro para), 75(E)(intro para); adds R.S. 39:2(40.1) and
75(F))