HLS 16RS-958 ENGROSSED
2016 Regular Session
HOUSE BILL NO. 657
BY REPRESENTATIVE SCHRODER
BUDGETARY PROCEDURES: Provides for additional authority for the governor and
legislature to reduce appropriations if there is a projected deficit
1 AN ACT
2To amend and reenact R.S. 39:75(C)(2)(b) and (E)(1) and (2), relative to avoidance of
3 budget deficits; to provide for an increase in the percentage of appropriated funds
4 that can be reduced and transferred related to a projected deficit; to provide for the
5 type of funds that can be reduced and transferred related to a projected deficit; to
6 provide for an effective date; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 39:75(C)(2)(b) and (E)(1) and (2) are hereby amended and reenacted
9to read as follows:
10 §75. Avoidance of budget deficits
11 * * *
12 C. Upon receiving notification that a projected deficit exists, the governor
13 shall have interim budget balancing powers to adjust the budget in accordance with
14 the following provisions:
15 * * *
16 (2)
17 * * *
18 (b) In accordance with Article VII, Section 10(F) of the Constitution of
19 Louisiana, the governor may direct the commissioner of administration to reduce any
20 appropriation or allocation for the executive branch of state government from the
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 16RS-958 ENGROSSED
HB NO. 657
1 state general fund and dedicated funds, including any which are constitutionally
2 protected or mandated, by an amount not to exceed five ten percent in the aggregate
3 of the total amount appropriated or allocated from that fund for that fiscal year.
4 Further, the governor may direct the commissioner of administration to reduce the
5 appropriation for any budget unit in the executive branch of state government from
6 fees and self-generated revenues by an amount to not exceed ten percent in the
7 aggregate of the total amount appropriated from fees and self-generated revenues for
8 that budget unit.
9 * * *
10 E. If the official forecast of recurring money for the next fiscal year is at
11 least one percent less than the official forecast of recurring money for the current
12 fiscal year, the governor and the legislature may employ the following methods and
13 procedures in the development of the state budget for the next fiscal year pursuant
14 to authority granted in Article VII, Section 10(F) of the Constitution of Louisiana,
15 for the purpose of avoiding a budget deficit in the next fiscal year.
16 (1)(a) An amount not to exceed five ten percent of the total appropriation or
17 allocation in the current fiscal year from any fund shall be available for appropriation
18 in the next fiscal year for a purpose other than as specifically authorized for that
19 fund.
20 (b) An amount not to exceed ten percent of the total appropriation or
21 allocation in the current fiscal year for each budget unit from fees and self-generated
22 revenues shall be available for appropriation in the next fiscal year for a purpose
23 other than as specifically authorized.
24 (2) An amount not to exceed five ten percent of the current fiscal year's total
25 appropriation or allocation for any expenditure which is either protected or mandated
26 by law or the Constitution of Louisiana shall be available for appropriation in the
27 next fiscal year for a purpose other than as specifically required by law or
28 constitution. For the purposes of this Paragraph, an amount not to exceed one
29 percent of the current fiscal year's total appropriation for expenditures required by
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 16RS-958 ENGROSSED
HB NO. 657
1 Article VIII, Section 13(B) of the Constitution of Louisiana shall be available for
2 other purposes.
3 * * *
4 Section 2. This Act shall take effect and become operative if and when the proposed
5amendment of Article VII, Section 10 of the Constitution of Louisiana contained in the Act
6which originated as House Bill No. ______ of this 2016 Regular Session of the Legislature
7is adopted at a statewide election and becomes effective.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 657 Engrossed 2016 Regular Session Schroder
Abstract: Increases the amount of appropriations that can be reduced and transferred to a
fund with a projected deficit from 5% to 10% and specifies that the reduction of
appropriated fees and self-generated revenues for transfer to a fund with a projected
deficit.
Present law provides for a procedure for adjusting appropriations if there is a projected
deficit in any fund.
Present law provides for adjustment to appropriations, and transfer of monies to the fund in
a projected deficit, with the approval of the Joint Legislative Committee on the Budget, not
to exceed 5%, when state general fund appropriations have been reduced in an aggregate
amount of 7/10 of 1%.
Present law further authorizes the legislature to make adjustments to appropriations, and
transfer monies to the fund in a projected deficit, not to exceed 5% when the official forecast
of recurring revenues for the next fiscal year is at least 1% less than the official forecast for
the current fiscal year.
Proposed law changes the amount that such adjustments can not exceed from 5% to 10%.
Proposed law further specifies that appropriated fees and self-generated revenues may be
reduced and transferred in the event of a projected deficit.
Effective if and when the proposed amendment of Article VII, Section 10 of the Constitution
of La. contained in the Act which originated as House Bill No. _ of this 2016 R.S. of the
Legislature is adopted at a statewide election and becomes effective.
(R.S. 39:75(C)(2)(b) and (E)(1) and (2))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.