LEGISLATIVE FISCAL OFFICE
Fiscal Note ACT 157
Fiscal Note On: HB 487 HLS 21RS 120
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 16, 2021 8:51 AM Author: ECHOLS
Dept./Agy.: Statewide
Subject: Provides relative to deficit avoidance procedures Analyst: Alan M. Boxberger
BUDGETARY CONTROLS EN SEE FISC NOTE SG EX See Note Page 1 of 1
(Constitutional Amendment) Provides relative to deficit avoidance procedures
Present constitution authorizes the legislature to establish a method for adjusting appropriations in order to eliminate a
projected budget deficit. Present law authorizes the governor to unilaterally reduce SGF appropriations to avoid a deficit,
provided the reductions do not exceed 3% of the agency’s total appropriation; provides that once the governor reduces total
SGF appropriations by 7/10 of 1%, the governor can take actions with JLCB approval to reduce statutory and constitutional
dedications by up to 5%, reduce an additional 5% of the SGF, and reduce the MFP provided reductions do not exceed 1%
and do not apply to instructional activities. Proposed constitutional amendment adjusts the governor’s authority, with JLCB
approval, to reduce statutory and constitutional dedicates by no more than 10% of the total appropriations or allocation from
a fund for the fiscal year. Proposed constitutional amendment provides that an amount not to exceed 10% of the total
appropriations or allocations for the current fiscal year from any fund shall be available for expenditure in the next fiscal year
for a purpose other than as specifically provided by law or the constitution.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. The impact on any
potential fund, appropriation or allocation is speculative and unknown until or unless a budget deficit is projected by the
Revenue Estimating Conference. Any modification to expenditures related to deficit reduction actions will be achieved by
joint action of the governor and the legislature.
Proposed constitutional amendment modifies the governor’s and Joint Legislative Committee on the Budget’s authority
relative to avoidance procedures with regard to a projected budget deficit. After certain reduction thresholds are reached in
accordance with present law, the governor can take action, with a majority vote of the JLCB, to make reductions to any
appropriation or allocation from the SGF and dedicated and constitutional funds including mandated allocations or
appropriations. The reduction adjustments may not exceed 10% of the total appropriation or allocation from the fund for
the fiscal year. In present law, such reductions may not exceed 5% of the total appropriation or allocation.
The Secretary of State may incur minimal ballot printing costs associated with this measure. As a regular practice, the
Secretary of State typically budgets for up to 10 constitutional amendments and statewide propositions for the fall statewide
elections. To the extent the ballot includes more than 10 constitutional amendments and statewide propositions, the
Secretary of State may require additional SGF resources for the October 9, 2021, statewide election. Any expenditure impact
would be realized in FY 23.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Christopher A. Keaton
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer