Legislators Face Challenges in Reviewing 370 Dedications that totaled $4.3 Billion, or 16% of State Expenditures, in Fiscal Year 2014

Louisiana has 370 dedications on the books into which officials are obliged either statutorily or constitutionally to direct specific sources of state revenue. In fiscal year 2014 – the latest year for which the most complete information is available – dedications made up 16% of the state’s total expenditures, or $4.3 billion.

In an informational report released today, the Legislative Auditor provides some insight into when the dedications were created, where their revenue comes from, and what role they play in the operation of state government.

While the Joint Legislative Committee on the Budget is required to review all dedications every two years, it faces a number of challenges to accomplish that. The report cites constituent influence, a lack of criteria to determine the return on investment of each dedication, and a lack of transparency and accountability for how dedicated funds are spent as some of the challenges the Legislature must contend with.

To make the most effective use of the dedications, the state auditor recommends that legislators consider developing standardized criteria to use when they review and evaluate dedications. Lawmakers should also consider adding sunset provisions to all dedications to ensure they are reviewed and looking at how state agencies actually spend the money in the dedications to make sure the funds are spent for their intended purpose.

Among the points the report details:

• Louisiana has 344 statutory dedications and 26 constitutional dedications, most of which were created between 1991 and 2000.
• The majority of dedications are funded through taxes and assessments, and the purpose of most dedications is to support local governments and environmental protection.
• While some dedications divert money from the General Fund, others have had no financial activity since they were established.
• Between 2011 and 2015, the Legislature authorized more than $530 million to be swept from these dedications to help balance the budget.
For more information contact:

Legislative Auditor
225.339.3800