Louisiana 2021 2021 Regular Session

Louisiana House Bill HB487 Comm Sub / Analysis

                    SSHB487 3862 3947
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 487	2021 Regular Session	Echols
BUDGETARY CONTROLS:  (Constitutional Amendment) Provides relative to deficit
avoidance procedures
Synopsis of Senate Amendments
1.Changes the percentage that statutory dedications can be reduced from 20% to
10%.
2.Changes the statewide election date for the proposed amendment to be
submitted to the voters from Nov. 8, 2022 to Oct. 9, 2021.
Digest of Bill as Finally Passed by Senate
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:
(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 10% 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 Oct. 9. 2021.
(Amends Article VII, §10(F)(2)(a) and (b))
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