Account Authorization: Act 557 of the 1979; Chapter 28 of Title 17 of LRS as amended by Act 1235 of the 1995 Regular Session.
The Auxiliary Account in LUMCON consist of the following activities: Dormitory and Cafeteria Operations, Federal Research Vessels, Act 971: Preventative Maintenance, and Act 971: Nonrecurring Projects.
SOURCE OF FUNDING
The sources of funding for this account are Fees and Self-generated Revenues and Federal Funds. Under the terms of R.S. 17:3386(A) (Act 971 of 1985), higher education institutions which adopt a building and facility preventative maintenance program approved by the Board of Regents may retain any State General Fund monies which remain unexpended and unobligated at the end of the fiscal year, provided that not less than fifty percent of the retained funds be used solely for preventative maintenance. The remaining funds may be spent on nonrecurring projects and are subject to approval by the higher education management boards, the Board of Regents, and the Joint Legislative Committee on the Budget. Historically, institutions have been allowed to retain no more than $200,000 in General Fund monies for the preventative maintenance and nonrecurring projects. Act 1478 of 1997 further limits the monies and amounts which may be retained. Act 1478 provides that: (1) unexpended, unobligated general fund appropriations which were made for a specific purpose in the General Appropriations Act shall not be retained; and (2) the retained monies that public higher education institutions may carry forward are limited to no more than two percent (2.0%) of their prior year's State General Fund appropriation or allocation. This program also utilizes $200,000 in fees and Self-generated Revenues for the establishment of an account to finance the operation of a dormitory and cafeteria used and paid for by K-12 and university students studying at the facility. Fees and Self-generated Revenues totaling $600,000, along with $300,000 in Federal Funds, are used to establish an account to finance the operation of the facility's fleet of fifteen (15) research vessels. These vessels are used by agency research staff and K-12 university students and researchers studying and working at the facility.
ANALYSIS OF RECOMMENDATION
The total means of financing for this account is recommended at 100.0% of the existing operating budget. It represents 100.0% of the total request ($1,135,240) for this account. The reason for the increase from the existing operating budget is the adjustment made to place this account in compliance with Act 1478 of 1997. The total recommended funding for this account is derived from this agency's prior year State General Fund appropriation or allocation ($ 1,762,016), which is then multiplied by 2.0% to yield the recommended funding for the retention of surplus funds account ($ 35,512). This amount is then added to the Self-generated dormitory and cafeteria account ($200,000), the Self-generated research vessel account ($ 600,000), and the Federal research vessel account ($ 300,000), to yield the total recommended funding ($1,135,512).
ACQUISITIONS AND MAJOR REPAIRS
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