Present Constitution authorizes the legislature to establish a procedure to determine if there will be a projected deficit and an adequate method for adjusting appropriations to eliminate the projected deficit.

Present Constitution exempts the following from such adjustments: (a) The Bond Security and Redemption Fund or any bonds secured thereby, or any other funds pledged as security for bonds or other evidences of indebtedness; (b) Severance tax and royalty allocations to parishes; (c) State and statewide retirement system contributions; (d) The Louisiana Education Quality Trust Fund; (e) The Millennium Trust, except appropriations from the trust; and (f) Monies not required to be deposited in the
state treasury.

Proposed Constitutional Amendment retains present constitution and further provides that the Medicaid Trust Fund for the Elderly is also exempted from such adjustments.