Could Ascension Parish contribute to a study of an airport planned in a nearby parish?

Plain-English summary

Ascension Parish considered contributing to the Louisiana Airport Authority for a study of an international airport in a nearby parish. In the official opinion, the AG said the parish had authority to pursue cooperative economic development, but a cooperative endeavor had to rest on a valid legal obligation, serve a public purpose, and give the parish a benefit proportionate to its cost.

The AG had not been told what specific benefit Ascension would receive. It said the parish could enter the arrangement if the agreement identified such a benefit and it was commensurate with the cost. The opinion rejected the idea that a public purpose alone permitted the parish to give away public assets.

Currency note

This opinion was issued in 2002. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Did the AG approve the proposed airport-study contribution outright?
No. The office lacked information identifying a specific benefit to Ascension Parish and gave a conditional answer.

Was economic development alone enough to justify spending parish money?
The opinion said no. A lawful cooperative endeavor also required a legal obligation and a public benefit proportionate to its cost.

Could a project outside Ascension Parish qualify?
The AG did not rule out the nearby-parish study solely because of its location; it focused on whether Ascension received the required benefit.

Background and statutory framework

The opinion applied Article 7, Section 14 (C) of the Louisiana Constitution and La. R.S. 33:9020 et seq. to a proposed economic-development agreement. It read those authorities alongside the constitutional prohibition on donations of public funds and the decision in City of Port Allen.

Citations and references

• Article 7, Section 14 (C) (cooperative endeavors)
• La. R.S. 33:9020 and La. R.S. 33:9021 (6) (economic development)
• City of Port Allen v. Louisiana Municipal Risk Management Agency, Inc. 439 So.2d 399 (La. 1983)

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/02-0045

Original opinion text

One American Place
30! Mare Street, Suite 600
CIVIL DIVISION
P O Box 94005
BATON ROUGE
TEL (22.5) 342-7013
FAX (225) 342-2090
RICHARD P. ]EYOUB
70804-9005
ATTORNEY GENERAL

MAR
Opinion Number 02-0045

90-A-1 Public Funds & Contracts
Art. 7, Section 14 of the Louisiana Constitution Mr. Ricky Babin
La. R.S. 33:9020, et seq.
Assistant District Attorney
Parish of Ascension
Parish of Ascension has authority for cooperative economic
development; however, the pursuit of economic development 23rd Judicial District Court must be in accordance with the constitution and laws of th=s
430 South Burnside, Suite A
state.
Gonzales, LA 70737

Dear Mr. Babin:

We received your request for an opinion on behalf of the Parish of Ascension regarding the legality of the parish entering into a cooperative endeavor agreement with the Louisiana Airport Authority. Ascension Parish is considering contributing $25,000.00 to the Louisiana Airport Authority to study the development of an international airport in a nearby parish.

Article 7, Section 14 (C) of the Louisiana Constitution authorizes the state and its political subdivisions to engage in cooperative endeavors for a public purpose with governmental agencies, public or private corporations and/or individuals. Our office has consistently opined that such cooperative endeavors, to be legally permissible, must be made pursuant to a valid legal obligation; must be for a public purpose; and, it must result in a public benefit that is proportionate to its cost. See Atty. Gen. Op. Nos. 01- 0441 and 01-86. Article 7, Section 14 (C) is not an exception to the otherwise general prohibition against the donation of public funds. Thus, even if the state or one of its political subdivisions cooperate for a public purpose, it still may not give away its assets merely for a public purpose. City of Port Allen v. Louisiana Municipal Risk Management Agency, Inc. 439 So.2d 399 (La. 1983).

Based upon the information provided in the request, it is our understanding that the Parish of Ascension is considering such an endeavor for the sake of economic development. While we recognize that the parish has authority for cooperative economic development through La. R.S. 33:9020 et seq., the pursuit of economic development must be in accordance with the constitution and laws of this state. See Atty. Gen. Op. No. 93-22. La. R.S. 33:9021 (6) identifies the purpose of cooperative economic development as an aid to local governmental subdivisions in alleviating the conditions of unemployment, underemployment, and other forms of economic distress.
We have no information identifying what benefit the Parish of Ascension will receive through such a cooperative endeavor agreement, however, if the agreement identifies

Page 2

Opinion Number 02-0045
Mr. Ricky Babin
Assistant District Attorney
Parish of Ascension
Page -2-

the specific benefit the parish will receive and such benefit is commensurate with its
cost, the parish may do so.

If you have questions, please contact our office.

With kindest regards,

Very truly yours,

RICHARD P. IEYOUB

BY:
TINA VICARI GRANT
Assistant Attorney General

RPI/TVG/dam