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 540 Original 2018 Regular Session Barras
Abstract: Caps the annual growth factor of the expenditure limit at 6%, allows the growth factor
to be established by law that requires 2/3 vote of each house of the legislature to change,
provides for changing the expenditure limit when the legislature is not in session, and deletes
the requirement that money in excess of the expenditure limit be deposited into the Budget
Stabilization Fund.
Present constitution provides for the determination of the expenditure limit for the next fiscal year
to be determined in the first quarter of the 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 multiplied
by a growth factor based on the change of personal income in the state.
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 authorizes the legislature to change the expenditure limit any fiscal year by a
favorable vote of 2/3 of the elected members of each house by a specific legislative instrument.
Proposed constitutional amendment authorizes the legislature to change the expenditure limit with
written consent of 2/3 of the elected members of each house when the legislature is not in session.
Present constitution requires that money available for appropriation from the state general fund and
dedicated funds in excess of the expenditure limit 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) and (2); Repeals Const. Art. VII, §10.3(A)(1))