(Constitutional Amendment) Limits the growth factor used to determine the expenditure limit to three percent (OR SEE FISC NOTE EX)
Impact
If enacted, HB 211 would have significant implications for state funding and budget formation. It would limit how much the state can increase its expenditure each year, potentially constraining state agencies and programs that rely on annual budget increases tied to personal income growth. Supporters argue that this move is essential for promoting prudent fiscal management, ensuring that state spending does not outpace growth in revenues, thereby fostering long-term financial stability.
Summary
House Bill 211 proposes a constitutional amendment to limit the growth factor used to determine the expenditure limit for the state of Louisiana to three percent annually. Currently, the expenditure limit is calculated based on the average annual percentage change in personal income over the previous three years. By capping this growth factor, the bill aims to impose stricter budgetary controls, thereby enhancing fiscal responsibility in state governance. This amendment would amend Article VII, Section 10(C)(1) of the Louisiana Constitution.
Sentiment
General sentiment surrounding HB 211 has been mixed. Proponents, particularly among conservative legislators, view the regulation as a necessary step towards controlling state spending and preventing fiscal irresponsibility. Conversely, critics, potentially including those in public service sectors, express concerns that such limits might jeopardize essential services and undermine funding for programs that benefit residents, particularly during times of economic growth.
Contention
There are notable points of contention regarding HB 211, primarily centered around the balance between fiscal responsibility and the need for flexible funding mechanisms. Opponents argue that the three percent limit might be too rigid, hindering the state's ability to respond effectively to economic changes or emergencies. Furthermore, some stakeholders fear that without adequate funding increases, vital state programs could suffer, affecting the overall welfare of Louisiana's residents.
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3 CA13s1(A)) (RE SEE FISC NOTE GF RV See Note)
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3-CA13s1(A))