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 469 Reengrossed 2020 Regular Session Beaullieu
Abstract: Changes the base for the expenditure limit to current year appropriations, limits
expenditure limit growth to five percent, and changes the method of determining the growth
factor.
Present law requires the commissioner of administration to submit the calculation for the expenditure
limit for the ensuing fiscal year to the Joint Legislative Committee on the Budget (JLCB) no later
than 35 days prior to each regular session.
Proposed law deletes the 35-day requirement in present law and instead requires that the expenditure
limit be submitted at the same time the executive budget is submitted to JLCB.
Present law provides for the determination of the expenditure limit for the next fiscal year to be
based on the current limit times a positive growth factor.
Proposed law changes the base from the current expenditure limit to the lesser of the original
calculated expenditure limit for the current fiscal year or the appropriated amounts out of the state
general fund and dedicated funds.
Proposed law limits the growth of the expenditure limit to five percent.
Present law defines the growth factor as the three-year average growth in La. personal income.
Proposed law establishes the growth factor as the average of the following four components:
(1)The present law three-year average growth in La. personal income.
(2)The three-year average change in gross domestic product as defined and reported by the U.S.
Dept. of Commerce, or its successor agency.
(3)The three-year average change in state population as defined and reported by the U.S. Dept.
of Commerce, or its successor agency.
(4)The three-year average change of the consumer price index for the South Region (CPI-
South) as defined and reported by the U.S. Dept. of Labor, or its successor agency.
Present law provides for the determination of the percentage rate of change of personal income in the current year and prior years. Proposed law repeals present law.
Proposed law further requires the commissioner of administration to submit documentation of the
methodology and data sources used to determine the rates of change for each factor. Requires any
changes in the methodology from the prior year calculation to be reviewed and approved by JLCB
prior to implementation.
Present law requires the commissioner to determine the state general fund and designated funds to
be used in the expenditure limit.
Proposed law requires the commissioner to determine what funds are to be excluded as well as
included in the expenditure limit. Further requires the commissioner to determine the state general
fund and dedicated funds to be included and excluded from the determination of the amount
appropriated in the current fiscal year applicable to the expenditure limit.
Proposed law specifically exempts any federal funds related to the COVID-19 crisis from being
counted towards the state's expenditure limit.
Effective if and when the proposed amendment of Article VII of the Constitution of La. contained
in the Act which originated as House Bill No. 464 of this 2020 R.S. of the Legislature is adopted at
a statewide election and becomes effective.
(Amends R.S. 39:33.1(A)-(C))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the original
bill:
1. Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Prohibit any federal funds related to the COVID-19 crisis received by the state from
being applied toward the calculation of the expenditure limit.