ENROLLED
ACT No. 271
2020 Regular Session
HOUSE BILL NO. 469
BY REPRESENTATIVES BEAULLIEU AND GAROFALO
1 AN ACT
2 To amend and reenact R.S. 39:33.1(A), (B), and (C), relative to the expenditure limit; to
3 provide for submission of the expenditure limit to the legislature; to provide for the
4 base for determining the expenditure limit; to cap the annual growth of the
5 expenditure limit; to provide for the calculation of the growth factor; to provide for
6 the calculation of state general fund and dedicated funds applicable to the
7 expenditure limit; to provide for effectiveness; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 39:33.1(A), (B), and (C) are hereby amended and reenacted to read
10 as follows:
11 ยง33.1. Determination of expenditure limit
12 A. The commissioner of administration shall submit a calculation for the
13 expenditure limit for the ensuing fiscal year to the Joint Legislative Committee on
14 the Budget no later than thirty-five days prior to each regular session at the same
15 time the executive budget is submitted to the Joint Legislative Committee on the
16 Budget pursuant to R.S. 39:37.
17 B.(1) The expenditure limit for the ensuing fiscal year shall be the
18 expenditure limit for the current fiscal year plus an amount equal to that limit times
19 the growth factor if the growth factor is positive. lesser of the following:
20 (a) The original calculated expenditure limit for the current fiscal year plus
21 an amount equal to that limit times the lesser of five percent or the growth factor.
22 (b) The amount appropriated out of the state general fund and dedicated
23 funds for the current fiscal year plus an amount equal to that appropriated amount
24 times the lesser of five percent or the growth factor.
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1 (2) The growth factor is defined as the average of the following four
2 indicators:
3 (a) The average annual percentage rate of change of personal income for
4 Louisiana as defined and reported by the United States Department of Commerce,
5 or its successor agency, for the three calendar years prior to the fiscal year for which
6 the limit is calculated.
7 (b) The average annual percentage rate of change of the gross domestic
8 product of Louisiana as defined and reported by the United States Department of
9 Commerce, or its successor agency, for the three calendar years prior to the fiscal
10 year for which the limit is calculated.
11 (c) The average annual percentage rate of change of population for Louisiana
12 as defined and reported by the United States Department of Commerce, or its
13 successor agency, for the three calendar years prior to the fiscal year for which the
14 limit is calculated.
15 (d) The average annual percentage rate of change of the consumer price
16 index for the South Region as defined and reported by the United States Department
17 of Labor, or its successor agency, for the three calendar years prior to the fiscal year
18 for which the limit is calculated.
19 (3) The figures used for the calculation of the growth factor shall be those
20 actual or estimated figures most recently reported by the United States Department
21 of Commerce at the time the expenditure limit is submitted to the Joint Legislative
22 Committee on the Budget.
23 (4) The annual percentage rate of change of personal income for the calendar
24 year immediately preceding the fiscal year for which the expenditure limit is
25 calculated shall be derived by:
26 (a) Computing the simple average of the available quarterly total personal
27 income estimates for that calendar year.
28 (b) Dividing that result by the reported annual estimate of total personal
29 income for the calendar year that is two years prior to the fiscal year for which the
30 limit is calculated.
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1 (c) Subtracting 1.0 from the result obtained in Subparagraph (b) of this
2 Paragraph. The calculation of the expenditure limit each fiscal year shall be
3 accompanied by documentation of the methodology and data sources used to
4 determine the rates of change for each factor. Any changes in the methodology used
5 from the prior year calculation shall require review and prior approval of the Joint
6 Legislative Committee on the Budget.
7 C. After review by the Joint Legislative Committee on the Budget, or its
8 designated staff, the commissioner of administration shall determine the state general
9 fund and designated dedicated funds to include and exclude in the calculation of the
10 state general fund and dedicated funds appropriated in the current fiscal year and the
11 state general fund and dedicated funds applicable to the expenditure limit in
12 accordance with Subsection D of this Section.
13 * * *
14 Section 2. Notwithstanding any provision of law to the contrary, no funds received
15 by the state of Louisiana from the federal government related to the COVID-19 crisis shall
16 be included in the calculation of the state general fund and dedicated funds applicable to the
17 expenditure limit.
18 Section 3. This Act shall take effect and become operative if and when the proposed
19 amendment of Article VII of the Constitution of Louisiana contained in the Act which
20 originated as House Bill No. 464 of this 2020 Regular Session of the Legislature is adopted
at a statewide election and becomes effective.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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