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 Engrossed 2021 Regular Session Echols
Abstract: Increases allowable reductions to statutory dedications and constitutionally protected
funds from 5% to 20% when there is a projected budget deficit.
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 increases the allowable reduction to statutory dedications, including
constitutional funds from 5% to 20% of the total appropriation or allocation from the fund for the
fiscal year.
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)(2)(a) and (b))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the original
bill:
1. Remove changes to the deficit avoidance process. 2. Remove the cap on allowable deficit reductions to higher education and the La. Dept. of
Health.
3. Remove the repeal of exemptions from deficit reductions for certain constitutional funds.