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Dedicated property taxes may only be utilized for the purpose approved by the voters and outlined in the procès-verbal.
In order for dedicated tax proceeds to be utilized for additional purposes, the taxing entity must first present this to a vote of the citizens to approve amended dedicated purposes.
In addition to the restrictions concerning dedicated taxes, public entities must also avoid violating Article VII, §14 of the Louisiana Constitution in expending any of their public funds. Article VII, §14 prohibits the donation, loan, or pledging of public funds of the State and local public entities, including public libraries.
The Attorney General has established a three-prong test called the Cabela Test to determine if an expenditure or transfer of public funds comports with the restrictions of Article VII, §14. In order for the expenditure or transfer of public funds to avoid violating the prohibitions of Article VII, §14, all of the following must be met:
1. The expenditure or transfer must be for a public purpose, for which the public entity is authorized to carry out;
2. The expenditure or transfer must not appear to be gratuitous on its face. This is generally satisfied by showing reciprocal obligations between the parties; and
3. The public entity must have a reasonable expectation of receiving an equal or greater benefit than the amount expended or transferred.
In this case, it does not appear the first prong of Cabela is met, as placement of law enforcement in local schools does not appear to comport with a public purpose that the parish library is authorized to carry out. Further, based upon the information provided, the second and third prongs also do not appear to be met as there does not appear to be any reciprocal benefit or obligation received by the library in return for the public funds being transferred to the Sheriff.
It appears that the transfer under the circumstances presented would constitute a prohibited donation of public funds under Article VII, §14
Louisiana Legislative Auditor website: 06/05/2025 03:07:17 PM
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