Constitutional amendment to revise the circumstances that would allow the reduction of constitutionally protected expenditures and dedications to eliminate a projected deficit in an ensuing fiscal year. (2/3 - CA13s1(A)) (EN SEE FISC NOTE SD EX See Note)
Impact
The bill would significantly modify state statutes concerning the management and allocation of state funds. By allowing up to five percent of current year appropriations to be used to address budget deficits in subsequent years, it provides state lawmakers with more flexibility in financial planning. This amendment could alter how state agencies and officials approach budgeting, particularly in times of economic uncertainty, potentially leading to broader changes in fiscal policy and resource allocation within the state.
Summary
Senate Bill 201 proposes a constitutional amendment in Louisiana aimed at revising the circumstances under which constitutionally protected expenditures can be reduced to eliminate projected deficits in subsequent fiscal years. Specifically, it seeks to amend Article VII, Section 10(F)(2)(b) of the Louisiana Constitution, allowing certain financial measures to be implemented when revenue forecasts are at least one percent lower than current fiscal forecasts. The bill also introduces new provisions under Article VII, Section 10(F)(4) detailing exceptions to these measures.
Sentiment
Discussions around SB 201 reflected a generally positive sentiment among lawmakers and policy analysts focused on fiscal responsibility, who viewed the proposal as a pragmatic step towards ensuring the state can manage its finances effectively. Proponents argued that the amendment provides necessary tools to address potential budget shortfalls proactively. However, there were concerns regarding the implications of increasing flexibility in fund usage, with some critics fearing it could undermine financial protections that are currently in place.
Contention
Key points of contention included the balance between financial flexibility and the potential risk of misallocation of funds. While supporters emphasized the importance of being able to redirect resources to address fiscal gaps, opponents raised concerns about the risk of reducing funds for essential services that are protected by current constitutional provisions. Furthermore, the bill's passage required a statewide election to gauge public support, which added another layer of complexity to the political discourse surrounding its implications and potential outcomes.
Constitutional amendment to repeal certain constitutionally dedicated and protected allocations and funds. (2/3-CA13s1(A)) (OR INCREASE GF RV See Note)
Constitutional amendment relative to the enactment of the budget for the next fiscal year and provides for the restoration of monies to funds under certain circumstances. (2/3-CA13s1(A)) (OR SEE FISC NOTE GF RV)
Constitutional amendment to provide for thresholds at which certain funds and allocations are subject to reduction or transfer to eliminate a projected deficit in a fiscal year. (2/3 - CA13sl(A))
(Constitutional Amendment) Provides for additional authority for the governor and legislature to reduce budgets if there is a projected deficit (EG SEE FISC NOTE SD EX See Note)
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3 CA13s1(A)) (RE1 SEE FISC NOTE SD EX See Note)
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3 CA13s1(A)) (OR SEE FISC NOTE SD EX)
Provides for the prohibition of the expenditure of state funds to refund a tax credit, pay certain rebates, or repurchase or grant transferable tax credits granted through incentive contracts unless budgeted and appropriated. (gov sig)
Requires the Revenue Estimating Conference to designate certain general fund money from mineral revenue as restricted and prohibits including such revenue in the executive budget (RE SEE FISC NOTE GF RV See Note)
(Constitutional Amendment) Prohibits the levy of taxes by the legislature unless there is an increase in population or a reduction in the official forecast