Answer

No. Article VII, §14 of the Louisiana Constitution generally prohibits the donation of public funds. The Attorney General has outlined a three-prong test to determine if a CEA transferring public property is proper under Article VII, §14 of the Louisiana Constitution. The test as enumerated in AG Op. No. 16-0022 is as follows: A public entity must have the legal authority to make the transfer and must show all of the following: 1. A public purpose for the transfer which comports with the governmental purpose for which the public entity has legal authority to pursue; 2. The transfer, taken as a whole, does not appear to be gratuitous (there should be real reciprocal obligations between the parties to the transfer); and 3. The public entity has a demonstrable, objective, and reasonable expectation of receiving at least equivalent value in exchange for the transfer. See LLA’s CEA Memo and Sample which can be found on the Legal Assistance & FAQs Overview page of the LLA Website for additional information on this matter. This type of transfer should be carefully examined by the mayor and council. Not every good project meets the Cabela’s Test. Louisiana Legislative Auditor website: 04/23/2025 11:34:54 PM