Opinion
April 8, 1996
90-A-2 PUBLIC FUNDS — Loan, Pledge or Grants La. Const. Art. VII, Sec. 14; R.S. 33:1236 (11)
Jackson Parish Police Jury cannot appropriate funds for purpose of endowing private or semi-public entities, but can enter into cooperative agreement(s) to fund programs of social welfare for the aid and support of the needy.
Honorable Walter E. May, Jr. District Attorney 2nd Judicial District Jackson Parish Courthouse 500 East Court Avenue Jonesboro, Louisiana 71251
On behalf of the Jackson Parish Police Jury, you have requested an Attorney General's opinion as to whether the Police Jury can legally appropriate Parish funds to the following entities:
1. Jackson Parish Museum
2. 4-H Awards
3. Jackson Parish Economic Development Corporation
4. Jackson Parish Counsel on Aging
5. Pine Belt Community Action Agency
6. Jackson Parish Civil Defense/Rescue Squad; and
7. The Louisiana National Guard
According to your correspondence, the Police Jury would like to partially fund the services provided by these entities to the citizens of Jackson Parish, but the Police Jury is concerned about violating La. Const. Art. VII, Sec. 14, which prohibits the use of public funds for private purposes. The undersigned has also been advised by Mr. Doug Stokes, of your office, that none of the entities mentioned have or will be providing any specific services on behalf of the Police Jury in exchange for the contemplated funding.
As you are obviously aware, La. Const. Art. VII, Sec. 14 (A) prohibits political subdivisions, such as Jackson Parish, from loaning, pledging or donating public funds, credit, property, or things of value to or for any person, firm, or corporation, public or private. This constitutional provision has been interpreted by the Louisiana Supreme Court in City of Port Allen v. Louisiana Municipal Risk Agency, 439 So.2d 399 (La. 1983), which held that the Constitution is violated whenever the state or a political subdivision seeks to give up something of value when it is under no obligation to do so.
The jurisprudence of this state also makes it clear that the worthiness of the contemplated use of public funds is immaterial to the constitutionality of a transfer of public funds. In James v. Rapides Parish Police Jury, 113 So.2d 88 (La.App. 2nd Cir. 1959), the court interpreted La. Const. (1921) Art. IV, Sec. 12, a provision almost identical to the present Art. VII, Sec. 14 (A). Therein, the court stated:
"These specific prohibitions have been wisely implanted in our fundamental law, for it is conceivable that without such prohibitions the state, or a political subdivision thereof, might so deplete the public funds by contributions to almost innumerable worthy private and semi-public enterprises as to seriously impair the necessary expense of conducting more prosaic but more important government functions." 113 So.2d at p. 93.
We are unaware of any provision of law which would obligate the use of public funds for the endowment of most of the entities listed above, despite their laudatory missions. In our opinion, appropriations for such endowments constitute donations, and therefore violate the provisions of La. Const. Art. VII, Sec. 14 (A).
With regard to the Jackson Parish Council on Aging and the Pine Belt Community Action Agency, we note that La. Const. Art. VII, Sec. 14 (B) provides certain exceptions to the prohibition contained in Sec. 14 (A) and states, in pertinent part:
"Nothing in this Section shall prevent (1) the use of public funds for programs of social welfare for the aid and support of the needy . . ."
It is our opinion that appropriations to these entities are authorized by law [See R.S. 33:1236 (11)A] and constitutionally permissable, as long as the public funds are only utilized to provide relief to those who can be classified as "needy", and as long, as those assisted through these entities are screened, pursuant to objective criteria, to insure that they are truly needy. See: Ops. Atty. Gen. Nos. 94-157, 92-543. If the Police Jury does decide to appropriate funds to either of these entities on behalf of the needy, then the Police Jury may wish to enter into a cooperative endeavor agreement with the entity in order to address the use if the funds in a constitutional and legal manner. Enclosed herewith is a copy of Op. Atty. Gen No. 93-787 which discusses cooperative endeavor agreements in some detail.
We trust the foregoing to be of assistance to you and the Police Jury. If this office can be of assistance in other areas of the law please do not hesitate to contact us.
Yours very truly,
Richard P. Ieyoub Attorney General
Jeanne-Marie Zeringue Barham Assistant Attorney General
State of Louisiana DEPARTMENT OF JUSTICE RICHARD P. IEYOUB Baton Rouge ATTORNEY GENERAL 70804-9095