Judges: RICHARD P. IEYOUB
Filed Date: 2/2/2001
Status: Precedential
Modified Date: 7/5/2016
Dear Mr. Picard:
This office is in receipt of your opinion request concerning Act
(1) Does a state agency have authority to make monetary awards from a dedicated fund to sub-recipients based solely on budget authority and prior to the State Treasurer actually receiving revenue into the dedicated fund?
If a state agency has such authority and exercises it, what is the state's liability if actual revenues received are lower than the appropriated budget authority and sub-recipient awards are adjusted downward mid-year after the sub-recipient has expended funds above their final award amount?
(2) Can local districts engage in project activities prior to the approval of their plan by the Department of Education and the Standing Committees of the legislature?
Pertinent to your inquiry is the 1999 Amendment to Louisiana's Constitution of 1974, Article VII, 10.8 entitled Millenium Trust, which took effect on July 1, 2000. Louisiana Constitution Article
Appropriations. Appropriations from the Education Excellence Fund shall be limited to an annual amount not to exceed the estimated aggregate annual earnings from interest, dividends, and realized capital gains on investment of the Millennium Trust as recognized by the Revenue Estimating Conference.
Therefore, the amount determined to be available for appropriation shall be the estimated aggregate annual earnings from investment of the trust fund for any given year. You stated in your letter that the legislature appropriated to the Department of Education authority to distribute EEF to local school districts, however you have not received the actual revenue and do not know what the final revenue numbers will be.
The relevant language of the statute is found at LSA-R.S.
(4) Beginning Fiscal year 2000-2001 and for each fiscal year through the end of Fiscal Year 2006-2007, of the monies available for appropriation after providing for the purposes enumerated in Paragraphs (1), (2), and (3) of this Subsection, the following appropriations shall be made to the state superintendent of education for distribution as follows:
(a) Thirty percent of the funds available to be divided equally among each, city, parish, and other local school system.
(b) Seventy percent of funds available to be divided among each city, parish, and other local school system in amounts which are proportionate to each school's share of the total state share of the Minimum Foundation Program appropriation as contained in the most recent Minimum Foundation Program budget letter approved by the State Board of Elementary and Secondary Education. (Emphasis supplied).
LSA-R.S.
No funds may be distributed to any school system until its plan has been approved by the department and by the appropriate standing committees of the legislature. (Emphasis supplied)
Assuming the word "award" in your query mean the distribution of EEF money to local school districts, LSA-R.S.
However, if "awards" mean the approval of a local school district's plan, than LSA-R.S.
Therefore, our response to your first question depends on what you mean by "award." If "awards" mean the distribution of funds then a state agency does not have the authority to make monetary awards from a dedicated fund to sub-recipients based solely on budgetary authority, when the State Treasurer has not actually received revenue in the dedicated fund. However, if "award" mean the approval of a local school system's plan, than the plans can be approved at anytime, including prior to the State Treasury receiving any Tobacco Settlement money into EEF. Based on the foregoing, it is not necessary for us to address the second part of your first question.
To address your second question, regarding allowing local school districts to engage in project activities prior to the approval of their plan by the Department of Education and the standing committees of the legislature, our response is governed by LSA-R.S.
Each recipient school or school system shall annually prepare and submit to the State Department of Education, hereinafter the "department", a prioritized plan for expenditure of funds it expects to receive in the coming year from the Education Excellence Fund. The plan shall include performance expectations to ensure accountability in the expenditure of such monies. The department shall review such plans for compliance with the requirements of this Paragraph and to assure that the expenditure plans will support excellence in educational practice. No funds may be distributed to any school system until its plan has been approved by the department and by the appropriate standing committees of the legislature. (Emphasis supplied)
Consequently, LSA-R.S.
In conclusion, considering LSA R.S.
Very truly yours,
RICHARD P. IEYOUB ATTORNEY GENERAL
By:________________________ Veronica L. Howard Assistant Attorney General
RPI:VLH:mmw:lrs
DATE REQUESTED: DATE RELEASED: February 2, 2001
VERONICA L. HOWARD Assistant Attorney General