Louisiana Constitution ARTICLE VII. REVENUE AND FINANCE
Louisiana Constitution – Article VII: Revenue and Finance
This article outlines the financial framework for the State of Louisiana, including the processes for raising, managing, and spending public funds. Below is a summary of the key components of Article VII:
1. General Fiscal Provisions
Establishes a balanced budget requirement.
Prohibits deficit spending unless authorized by law.
Sets the fiscal year as July 1 to June 30.
2. State Budget Process
The governor submits an executive budget to the legislature.
The legislature must pass a general appropriation bill for ordinary expenses.
Supplemental appropriations can only be made if there’s a surplus.
3. Revenue and Taxation
Grants the legislature the power to levy and collect taxes, including sales, income, severance, and property taxes.
Specifies uniformity in taxation and requires that taxes be levied for public purposes only.
Local governments may impose taxes with voter approval.
4. State Funds
Establishes specific funds such as:
Bond Security and Redemption Fund: used to repay state debt.
Budget Stabilization Fund ("Rainy Day Fund"): used to offset revenue shortfalls.
Transportation Trust Fund: for highway construction and maintenance.
Coastal Protection and Restoration Fund: for coastal projects.
5. Public Debt
Sets limits on state borrowing and public debt.
Requires voter approval for certain bond issues.
Provides mechanisms for refunding debt and prioritizing repayment.
6. Local Government Finance
Defines local taxation powers, subject to state laws and voter approval.
Addresses the assessment and collection of property taxes.
Mandates a homestead exemption and other special property tax rules.
7. Retirement Systems
Establishes funding and reporting requirements for public retirement systems.
Protects the accrued benefits of retirees.
Requires actuarial soundness and annual reports to the legislature.
8. Miscellaneous Provisions
Includes provisions on state and local audits, public contracts, and revenue sharing.
Permits the dedication of revenues to specific purposes by constitutional amendment.
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