HLS 20RS-240 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 528
BY REPRESENTATIVE MIGUEZ
BUDGETARY CONTROLS: (Constitutional Amendment) Provides for changes in the
expenditure limit calculation
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 10(C)(1) and (2) of the Constitution of Louisiana
3 and to repeal Article VII, Section 10.3(A)(1) of the Constitution of Louisiana,
4 relative to the expenditure limit; to provide for the method of determining the
5 expenditure limit; to provide for the determination of the growth factor of the
6 expenditure limit; to limit 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) and (2) of the Constitution of Louisiana, to read as
13follows:
14 §10. Expenditure of State Funds
15 Section 10.
16 * * *
17 (C) Expenditure Limit. (1) The legislature shall provide for the
18 determination of an expenditure limit for each fiscal year to be established during the
19 first quarter of the calendar year for the next fiscal year. However, the expenditure
20 limit for the 1991-1992 Fiscal Year shall be the actual appropriations from the state
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HB NO. 528
1 general fund and dedicated funds for that year except funds allocated by Article VII,
2 Section 4, Paragraphs (D) and (E). For subsequent fiscal years, the limit shall not
3 exceed the expenditure limit amount appropriated from the state general fund and
4 dedicated funds for the current fiscal year plus an amount equal to that limit times
5 appropriated amount multiplied by a positive growth factor. The growth factor is the
6 average annual percentage rate of change of personal income for Louisiana as
7 defined and reported by the United States Department of Commerce for the three
8 calendar years prior to the fiscal year for which the limit is calculated legislature
9 shall establish by law a procedure to determine the growth factor, which shall not
10 exceed six percent. Once established by law, the procedure to determine the growth
11 factor shall not be changed except by a law enacted by two-thirds of the elected
12 members of each house of the legislature.
13 (2) The expenditure limit may be changed in any fiscal year by a favorable
14 vote of consent of two-thirds of the elected members of each house. Any If the
15 legislature is in session, any such change in the expenditure limit shall be approved
16 by passage of a specific legislative instrument which clearly states the intent to
17 change the limit. If the legislature is not in session, the two-thirds requirement may
18 be satisfied upon obtaining written consent of two-thirds of the elected members of
19 each house in a manner provided by law.
20 * * *
21 Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members
22elected to each house concurring, that there shall be submitted to the electors of the state of
23Louisiana, for their approval or rejection in the manner provided by law, a proposal to repeal
24Article VII, Section 10.3(A)(1) of the Constitution of Louisiana.
25 Section 3. Be it further resolved that this proposed amendment shall be submitted
26to the electors of the state of Louisiana at the statewide election to be held on November 3,
272020.
28 Section 4. Be it further resolved that on the official ballot to be used at the election,
29there shall be printed a proposition, upon which the electors of the state shall be permitted
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HB NO. 528
1to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
2follows:
3 Do you support an amendment to limit the annual growth of the expenditure
4 limit, to change the use of money in excess of the expenditure limit, and to
5 allow the legislature to establish in law the method of determining the
6 expenditure limit? (Amends Article VII, Section 10(C)(1) and (2); Repeals
7 Article 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 528 Original 2020 Regular Session Miguez
Abstract: Ties the next year's expenditure limit to current year expenditures, caps the
annual growth factor of the expenditure limit at 6%, allows the growth factor to be
established by law that requires a 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.
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 a law enacted by a 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.
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HB NO. 528
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. 3, 2020.
(Amends Const. Art. VII, §10(C)(1) and (2); Repeals Const. Art. VII, §10.3(A)(1))
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