Editorial by Wes Merriott, sobo.live
On Monday, February 24, 2025, the Shreveport City Council will discuss a resolution to allocate $40,000 in public funds to three nonprofit organizations. This resolution, proposed by Councilwomen Tabatha Taylor and Ursula Bowman, is in direct violation of Article VI, Section 14 of the Louisiana Constitution, which strictly prohibits the donation of public funds to private entities unless a specific constitutional exception applies.
The Core Issue: Illegal Donations of Public Funds
Louisiana's Constitution clearly states that "the funds, credit, property, or things of value of the state or of any political subdivision shall not be loaned, pledged, or donated to or for any person, association, or corporation, public or private." In simple terms, cities and parishes cannot give away taxpayer money to private organizations, no matter how well-intentioned the donation.
The Louisiana Legislative Auditor (LLA) has repeatedly warned local governments that such transfers are illegal. According to the LLA, municipalities attempting to donate money to nonprofits without a valid public purpose and a measurable benefit violate state law.
The proposed resolution fails this test. It seeks to allocate $15,000 to the Martin Luther King Neighborhood Association, $10,000 to Rho Omega and Friends, and $15,000 to Best 13 without explaining how these funds serve a specific, legally justified public purpose. There is no breakdown of how the money will be used, no performance metrics, and no legally binding agreement to ensure taxpayers receive something of equal value in return.
No Justification, No Accountability
The resolution claims that these organizations serve an "overriding public purpose." This vague language does not satisfy the legal standard required under Louisiana law. Courts have ruled that public benefit must be specific, direct, and measurable-not just a broad assertion.
Additionally, there is no cooperative endeavor agreement (CEA) included in the resolution. A CEA is legally required when public funds are given to private entities. It must define:
1. The specific services provided in exchange for public money.
2. How the benefit to taxpayers will be measured.
3. How the organization will be held accountable for its spending.
Without a CEA, the city council would be handing over taxpayer dollars with no oversight, which is a clear violation of Article VII, Section 14(A) of the Louisiana Constitution.
The Louisiana Legislative Auditor's Findings
The LLA has consistently ruled against municipalities donating public funds to nonprofits. The state's audit reports have highlighted multiple instances where city councils and parish governments were found in violation of this law. The LA's official stance is clear:
"The donation of public funds to a nonprofit organization, without a valid cooperative endeavor agreement that ensures a public benefit proportional to the expenditure, is unconstitutional."
Several Louisiana municipalities have already faced state investigations and financial consequences for violating this law. Shreveport should not add itself to the list.
Consequences of Passing This Resolution
If the city council approves this resolution, several consequences will follow:
1. State Audit Findings - The Louisiana Legislative Auditor could issue an official finding against Shreveport for violating state law. This could lead to financial penalties or mandated reimbursements.
2. Legal Challenges - Any taxpayer has the right to file a lawsuit challenging the constitutionality of the resolution. If challenged in court, the city will almost certainly lose.
3. Financial Liability - If the resolution is overturned, the city could be forced to recover the funds from the nonprofits, which would create a bureaucratic and financial mess.
4. Erosion of Public Trust - Shreveport residents expect their elected officials to follow the law. Violating the state constitution erodes trust and confidence in city leadership.
What Should the City Council Do?
The only legal path forward is for the council to vote against this resolution. If the city wishes to fund nonprofit programs, it must:
• Enter into a formal Cooperative Endeavor Agreement (CA).
• Clearly define the services provided.
• Ensure measurable public benefit.
• Follow Louisiana state law.
If these conditions are not met, the council has no legal authority to approve these donations. The Shreveport City Council must uphold the Louisiana Constitution and protect taxpayer dollars from illegal misuse. No matter how worthy a nonprofit may be, the law does not allow for direct donations of public funds. Passing this resolution would be an irresponsible and unconstitutional act. The city council must vote it down to comply with state law and avoid the consequences of illegal financial mismanagement. Shreveport taxpayers deserve accountability, transparency, and respect for the law. On February 23, the city council must make the only lawful choice: Reject this resolution.
Wes Merriott is the editor of sobo.live and a longtime observer of local government in Northwest Louisiana.