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AG Op. No. 09-0271 sets out the requirements for the use of public funds for tuition reimbursement for public employees. Such expenditure of public funds is allowable only to the extent that it is related to the duties and obligations of the entity and the duties and responsibilities the employee is required to perform. To determine this, the entity must examine whether the expenditure of public funds meets the 3 prongs of the Cabela’s test: (1) public purpose for the expenditure; (2) the expenditure, take as a whole, does not appear gratuitous; and (3) the public entity has a demonstrable, objective, and reasonable expectation of receiving at least equivalent value in exchange for the expenditure of public funds. If these 3 prongs of the Cabela’s test are not met, the expenditure of public funds would amount to a prohibited donation in violation of Art. 7, Sec. 14 of the La. Constitution.
The District, in consultation with an employment attorney, should develop and adopt a policy setting out the requirements of the tuition reimbursement program that ensures that these 3 prongs of the Cabela’s test are met. The program should be made available to all employees who qualify.
Louisiana Legislative Auditor website: 04/02/2026 07:26:23 AM
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