HLS 181ES-11 ORIGINAL
2018 First Extraordinary Session
HOUSE BILL NO. 15
BY REPRESENTATIVE BARRAS
BUDGETARY CONTROLS: (Constitutional Amendment) Provides for changes in the
expenditure limit calculation (Item #12)
1 A JOINT RESOLUTION
2Proposing to amend and reenact Article VII, Section 10(C)(1) of the Constitution of
3 Louisiana and to repeal Article VII, Section 10.3(A)(1) of the Constitution of
4 Louisiana, relative to the expenditure limit; to change the method of determining the
5 expenditure limit; to provide for the determination of the growth factor of the
6 expenditure limit; to cap the growth of the expenditure limit; to eliminate required
7 uses of monies in excess of the expenditure limit; to provide for submission of the
8 proposed amendment to the electors; and to provide for related matters.
9 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10elected to each house concurring, that there shall be submitted to the electors of the state of
11Louisiana, for their approval or rejection in the manner provided by law, a proposal to
12amend Article VII, Section 10(C)(1) of the Constitution of Louisiana, to read as follows:
13 §10. Expenditure of State Funds
14 Section 10.
15 * * *
16 (C) Expenditure Limit. (1) The legislature shall provide for the
17 determination of an expenditure limit for each fiscal year to be established during the
18 first quarter of the calendar year for the next fiscal year. However, the expenditure
19 limit for the 1991-1992 Fiscal Year shall be the actual appropriations from the state
20 general fund and dedicated funds for that year except funds allocated by Article VII,
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are additions. HLS 181ES-11 ORIGINAL
HB NO. 15
1 Section 4, Paragraphs (D) and (E). For subsequent fiscal years, the limit shall not
2 exceed the expenditure limit amount appropriated from the state general fund and
3 dedicated funds for the current fiscal year plus an amount equal to that limit
4 appropriated amount times a positive growth factor. The growth factor is the average
5 annual percentage rate of change of personal income for Louisiana as defined and
6 reported by the United States Department of Commerce for the three calendar years
7 prior to the fiscal year for which the limit is calculated legislature by law shall
8 establish a procedure to determine the growth factor, which shall not exceed six
9 percent. Any law establishing a procedure to determine the growth factor, once
10 enacted, shall not be changed except by specific legislative instrument which
11 received a favorable vote of two-thirds of the elected members of each house of the
12 legislature.
13 * * *
14 Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members
15elected to each house concurring, that there shall be submitted to the electors of the state of
16Louisiana, for their approval or rejection in the manner provided by law, a proposal to repeal
17Article VII, Section 10.3(A)(1) of the Constitution of Louisiana.
18 Section 3. Be it further resolved that this proposed amendment shall be submitted
19to the electors of the state of Louisiana at the statewide election to be held on November 6,
202018.
21 Section 4. Be it further resolved that on the official ballot to be used at the election,
22there shall be printed a proposition, upon which the electors of the state shall be permitted
23to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
24follows:
25 Do you support an amendment to change the base for determining the next
26 fiscal year's expenditure limit, to cap the annual growth of the expenditure
27 limit, to change the use of money in excess of the expenditure limit, and to
28 allow the legislature to establish in law change the method of determining the
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HB NO. 15
1 expenditure limit? (Amends Article VII, Section 10(C)(1), Repeals Article
2 VII, Section 10.3(A)(1))
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 15 Original 2018 First Extraordinary Session Barras
Abstract: Ties the next year's expenditure limit to current year expenditures, caps the
annual growth factor of the expenditure limit to 6%, allows the growth factor to be
established by law that requires 2/3 vote of each house of the legislature to change,
and deletes the requirement that money in excess of the expenditure limit be
deposited into the Bond Security and Redemption Fund.
Present constitution provides for the determination of the expenditure limit for the next fiscal
year to be determined in the first quarter of calendar year for the current fiscal year. The
expenditure limit for the next fiscal year is based on the expenditure limit for the current
fiscal year times a growth factor based on the change of personal income in the state.
Proposed constitutional amendment changes the base for determining the next year's
expenditure limit from the current year expenditure limit to current year appropriations out
of the state general fund and dedicated funds.
Present constitution defines the growth factor as the average annual percentage rate of
change of personal income for La. as defined and reported by the U.S. Dept. of Commerce
for the three calendar years prior to the fiscal year for which the limit is calculated.
Proposed constitutional amendment removes the definition of the growth factor in present
constitution and instead requires the legislature to establish a procedure to determine the
growth factor, which shall not exceed 6%. Once established, the growth factor shall not be
changed except by specific legislative instrument receiving a favorable 2/3 vote of the
elected members of each house of the legislature.
Present constitution requires that money available for appropriation from the state general
fund and dedicated funds in excess of the expenditure limit shall be deposited into the
Budget Stabilization Fund.
Proposed constitutional amendment repeals present constitution.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 6, 2018.
(Amends Const. Art. VII, §10(C)(1); Repeals Const. Art. VII, §10.3(A)(1))
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