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 571 Original 2020 Regular Session Miguez
Abstract: Changes requirements for submission of the expenditure limit calculation, limits
expenditure limit growth to 6%, changes the method of determining the growth factor, and
allows for mail ballot to change the expenditure limit.
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.
Proposed law requires that the expenditure limit calculation include a comparison of expenditure
limit to applicable expenditures and historical comparative information.
Present law provides that the determination of the expenditure limit for the next fiscal year be based
on the current limit multiplied by a positive growth factor.
Proposed law limits the growth of the expenditure limit to 6%.
Proposed law provides that, if the growth factor is not positive, the expenditure limit for the next
fiscal year shall be the expenditure limit for the current fiscal year.
Present law defines the growth factor as the three-year average growth in La. personal income.
Proposed law retains the average growth in personal income and adds three other indicators to the
determination of the growth factor:
(1)The three-year average change of the gross domestic product of Louisiana as defined and
reported by the U.S. Dept. of Commerce, or its successor agency
(2)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.
(3)The three-year average change of population of Louisiana as defined and reported by the U.S.
Dept. of Commerce, or its successor agency. Present law requires the determination of the percentage rate of change of personal income in the
current year and prior years.
Proposed law deletes present law and requires that the commissioner of administration include the
methodology and data sources used to determine the rates of change for each factor. Any changes
in the methodology from the prior year calculation shall require review and prior approval of the
JLCB.
Present law requires a concurrent resolution adopted by a 2/3 vote of each house of the legislature
to change the expenditure limit.
Proposed law allows the legislature to use the mail ballot procedure contained in present law to
obtain the 2/3 approval of each house to change the expenditure limit when the legislature is not in
session.
Present law requires that all money available for appropriation from the state general fund and
dedicated funds in excess of the expenditure limit shall be deposited in the Budget Stabilization
Fund.
Proposed law repeals present law.
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. of this 2020 RS of the Legislature is adopted at a
statewide election and becomes effective.
(Amends R.S. 39:33.1(A)-(C) and 52.1; Repeals R.S. 39:94(A)(1))