The original instrument was prepared by Martha Hess. The following digest, which
does not constitute a part of the legislative instrument, was prepared by Linda
Nugent.
DIGEST
SB 201 Reengrossed 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 at any time 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, the
following procedures may be employed to avoid a budget deficit in the next fiscal year:
(1)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.
(2)An amount not to exceed 1% of the balance in the current fiscal year from any fund
established by the constitution shall be available in the next fiscal year for a purpose other
than as specifically provided by law or 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 at any time 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. 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.
Present constitution provides for certain exceptions to transfers of monies to avoid a budget deficit.
Proposed constitution would add to the list of exceptions monies in the Coastal Protection and
Restoration Fund, the Conservation Fund, the Oilfield Site Restoration Fund, and any health care
provider fees or assessments in the Hospital Stabilization Fund or the La. Medical Assistance Trust
Fund.
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) and (4)(h), (i), (j), and (k))
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. Senate Floor Amendments to engrossed bill
1. Provides that budget deficit avoidance procedures may be employed at any time the
official forecast of recurring revenues for the next fiscal year has been reduced by at
least one percent from the most recently adopted estimate for the ensuing year.
2. The one percent of the balance in a fund that may be available in the next fiscal year
for a purpose other than specifically provided by law or the constitution is limited to
only funds established by the constitution.
3. Adds to the list of exceptions monies in the Coastal Protection and Restoration Fund,
the Conservation Fund, the Oilfield Site Restoration Fund, and any health care
provider fees or assessments in the Hospital Stabilization Fund or the La. Medical
Assistance Trust Fund.
4. Technical amendments.