The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Martha S. Hess.
DIGEST
SB 201 Engrossed 2016 Regular Session Allain
Present constitution provides for the purposes of the budget estimate and enactment of the budget
for the next fiscal year, 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, in order to avoid a budget deficit
in the next fiscal year, an amount not to exceed 5% of the total appropriations or allocations for the
current fiscal year from any statutory or constitutional fund shall be available for expenditure in the
next fiscal year for a purpose other than as specifically provided by law or this constitution.
Proposed constitution revises present constitution to provide that 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, or when the official forecast of recurring revenues for the next fiscal year has been
reduced by at least 1% from the most recently adopted estimate for the ensuing fiscal year either
prior to the governor submitting the executive budget to the legislature or during the legislative
session prior to the general appropriation act being enrolled and submitted to the governor, the
following procedures may be employed to avoid a budget deficit in the next fiscal year:
(i)An amount not to exceed 5% of the total appropriations or allocations for the current
fiscal year from any fund established by law or this constitution shall be available for
expenditure in the next fiscal year for a purpose other than as specifically provided
by law or the constitution.
(ii)An amount not to exceed 1% of the balance in the current fiscal year from any fund
established by law or the constitution shall be available in the next fiscal year for a
purpose other than as specifically provided by law for the constitution.
Present constitution provides that for purposes of this provision, an amount not to exceed 1% of the
current fiscal year appropriation for Minimum Foundation Program expenditures shall be available
for expenditures for other purposes in the next fiscal year.
Proposed constitution retains present constitution.
Present constitution further provides that monies made available as authorized under this provision
may be transferred to a fund for which revenues have been forecast to be less than the revenues in
the current fiscal year for such fund.
Proposed constitution retains present constitution and further provides that monies may also be
transferred to a fund when the official forecast of recurring revenues for the next fiscal year has been
reduced by at least 1% from the most recently adopted estimate for the ensuing fiscal year either
prior to the governor submitting the executive budget to the legislature or during the legislative session prior to the general appropriation act being enrolled and submitted to the governor.
Present constitution provides that monies transferred as a result of the budget actions authorized by
present constitution are deemed available for appropriation and expenditure, but in no event shall
the aggregate amount of any such transfers exceed the amount of the difference between the official
forecast for the current fiscal year and the next fiscal year.
Proposed constitution retains present constitution regarding the monies transferred being deemed
available for appropriation and expenditure, but provides that the aggregate amount of such transfers
shall not exceed the projected deficit for the next fiscal year due to the reduction in the official
forecast.
Specifies submission of the amendment to the voters at the statewide election to be held on
November 8, 2016.
(Amends Const. Art. VII, Sec. 10(F)(2)(b))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original bill
1. Changes authorization to use up to 5% of the total appropriations or allocations for
the current fiscal year from any fund in the next fiscal year for a purpose other than
as specifically provided by law from report of Legislative Fiscal Officer to the Joint
Legislative Committee on the Budget that appropriations for either healthcare or
higher education is an amount less than the appropriations in the existing operating
budget for the current fiscal year to reduction in official forecast of recurring
revenues for the next fiscal year by at least 1% prior to submission of executive
budget to the legislature or enrollment and submission to governor of general
appropriation bill.
2. Provides another procedure to avoid a budget deficit by making up to 1% of the
balance in the current fiscal year from any fund established by law or the constitution,
available in the next fiscal year for a purpose other than as specifically provided by
law.
3. Changes aggregate amount of transfers pursuant to constitutional provision from the
amount of the difference between the official forecasts for the current and next fiscal
year to the amount of the projected deficit for the next fiscal year due to the reduction
in the official forecast.