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 487 Original 2021 Regular Session Echols
Abstract: Allows reductions of up to 20% to appropriations from constitutionally protected funds
and appropriations to health care and higher education during a projected budget deficit.
Present constitution authorizes the legislature to establish by law a method for adjusting
appropriations in order to eliminate a projected budget deficit. Proposed constitution repeals present
constitution.
Present law authorizes the governor to unilaterally reduce state general fund appropriations to avoid
a projected budget deficit, provided the reductions are only to the executive branch and reductions
for an agency do not exceed 3% of the agency’s total appropriation.
Present law provides that once the governor reduces total state general fund appropriations by 7/10
of 1%, he can take the following actions with approval of the Joint Legislative Committee on the
Budget (JLCB):
(1)Reduce statutory dedications (including constitutional funds) by up to 5%.
(2)Reduce an additional 5% of the total state general fund amount appropriated for the
fiscal year.
(3)Reduce the MFP provided the reduction does not exceed 1% and does not apply to
instructional activities.
Proposed constitution removes the governor's unilateral authority and other reduction limitations and
instead authorizes the governor, with a majority vote of the legislature during session or approval
of JLCB when the legislature is not in session, to make adjustments to any appropriations or
allocations from the state general fund and dedicated funds, including any constitutionally protected
or mandated allocations or appropriations.
Proposed constitution further provides that any adjustment made to appropriations or allocations
from any dedicated fund, including constitutionally protected or mandated allocations or
appropriations, or to state general fund appropriations for higher education, including the Board of
Regents and higher education management boards, or to state general fund appropriations or fees and
self-generated revenue appropriations for the La. Department of Health may not exceed 20% of the
total appropriation or allocation from the fund for the fiscal year. Present law authorizes the governor to issue executive orders in the form of freeze orders prohibiting
the expenditure of monies for specific items. Proposed constitution includes this provision in the
constitution.
Present constitution exempts appropriations from certain funds from being reduced during a
projected deficit. Proposed constitution removes that exemption.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
Nov. 8, 2022.
(Amends Article VII, §10(F))