RDCSB201 255 4756
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)]
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 and such reductions
shall not be applicable to instructional activities.
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 adds to the list of exceptions monies associated with the
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Coastal Protection and Restoration Fund, the Conservation Fund, the Oilfield Site
Restoration Fund, any health care provider fees or assessments in the Hospital Stabilization
Fund, the La. Medical Assistance Trust Fund, and supplements to the salaries of full-time
local law enforcement and fire protection officers.
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.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
reengrossed bill:
1. Add to the list of exceptions to transfers of monies to avoid a budget deficit,
supplements to the salaries of full-time local law enforcement and fire protection
officers.
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