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))