Saturday morning, State Treasurer John Kennedy called in while I was on WWL radio with host Don Dubuc discussing Non-Governmental Organizations (”NGO”). NGO is the new name for lege “slush funds.”

Kennedy asked a very interesting question and like all good lawyers, one to which he already knew the answer. He asked about the constitutionality of appropriating state money to private groups.

I failed to adequately respond to Kennedy’s question and will attempt to do so now.

The short answer is state funding NGOs is unconstitutional, but….

Constitutional prohibition

LA Constitution Article VII, Section 14 (A) states:

“Except as otherwise provided by the this constitution, the funds…of the state…shall not be …donated to or for any person, association, or corporation, public or private.”

Exception

The exception is found in Section 14(C) of the above cited constitutional provision. It requires that the otherwise illegal expenditures meet certain requirements to be legal.

The money given to a private entity must be: a) for a “a public purpose” and b) in accordance with a cooperative endeavor between the state and a private association, corporation, or individual.”

“Cooperative endeavors” require written agreements setting forth the particulars of the effort. There are specific statutory requirements for cooperative endeavor agreements such as those purporting to be for economic development.

I have been unable to find any of these agreements, proposed or signed in the documentation listed on the lege website.

Jindal’s options

If Governor Jindal is opposed to giving mine and your money to these private organizations he has some options:

First, as the state’s chief executive officer, Jindal could simply refused to sign any or all of the cooperative endeavor agreements between the state and the NGOs.

Second, Jindal could use his line-item veto power to delete any and all of these expenditures from HB 1.

Third, Jindal could simply issue public statement saying that he will veto all such expenditures. That would end them right now. The money saved could be used to give us tax relief.

Contacts

To let Governor Jindal know your feelings on state funding for NGOs go here.

To let your state representative know your feelings on the matter go here. To let your state senator know go here .

C.B.