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 884 Engrossed 2022 Regular Session Beaullieu
Abstract: Changes the calculation of the expenditure limit and requires the Joint Legislative
Committee on the Budget (JLCB) to determine the state general fund and designated funds
that are excluded from the calculation of the expenditure limit.
Present constitution (Art. VII, Sec. 10) requires the legislature to provide for a determination of an
expenditure limit for each fiscal year, to be established during the first quarter of the calendar year
for the next fiscal year.
Present law (R.S. 39:33.1) establishes the calculation of the expenditure limit in accordance with
present constitution. Requires the commissioner of administration (commissioner) to submit a
calculation for the expenditure limit to JLCB no later than 35 days prior to each regular session.
Proposed law retains present law and further requires the commissioner to submit a list of
recommendations for state general fund and designated funds to exclude from the calculation of
expenditures in relation to the expenditure limit pursuant to present and proposed law.
Present law provides for calculation of the expenditure limit. Present law establishes a formula to
calculate the growth factor, which is a component of the expenditure limit calculation. Proposed law
retains present law. Further provides that the expenditure limit for the ensuing fiscal year shall be
the expenditure limit for the current fiscal year plus an amount equal to that limit times the growth
factor, if the growth factor is positive. Proposed law provides that, beginning with the calculation
for the 2023-2024 fiscal year and for each calculation thereafter, the expenditure limit for the ensuing
fiscal year shall be the lesser of:
(1)The sum of the total amounts appropriated by act of the legislature from the state general
fund and dedicated funds as of July first of the fiscal year in which the calculation is made,
less amounts appropriated from the state general fund and dedicated funds that were vetoed
by the governor and not overridden by the legislature, plus the total amount of non-
appropriated constitutional requirements reflected on the most recent budget status report
submitted to JLCB pursuant to present law plus an amount equal to that sum times the
growth factor, if the growth factor is positive.
(2)The limit established by the legislature pursuant to the authority granted in present
constitution.
Present law provides that after the calculation is reviewed by JLCB, or its designated staff, the
commissioner shall determine the state general fund and designated funds to include in the calculation of the expenditure limit in accordance with present law. Proposed law repeals this
authority and instead requires JLCB to determine which state general fund and dedicated funds to
exclude from any calculation of expenditures in relation to the expenditure limit. Further requires
the following to be included in any such calculation:
(1)The total amount of non-appropriated constitutional requirements reflected on the most
recent budget status report submitted to the JLCB pursuant to present law.
(2)The total expenditures of monies held by the state in a fiduciary capacity, to the extent such
monies are not excluded pursuant to present law.
(3)Each expenditure of funds from an appropriation for a prior fiscal year made by legislative
act which appropriation has been carried forward into the current fiscal year, to the extent
such monies are not excluded pursuant to present law.
(Amends R.S. 39:33.1(A), (B)(1), and (C))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the original
bill:
1. Remove proposed law provision establishing the expenditure limit as the lesser of the
amount established by the legislature pursuant to present constitution or the total amount
appropriated by the legislature from the state general fund and dedicated funds as of
December first for the current fiscal year, excluding changes to budget authority made
by the commissioner of administration or the Joint Legislative Committee on the Budget,
plus an amount equal to that amount times the growth factor if the growth factor is
positive.
2. Add provision establishing the expenditure limit as the lesser of the amount established
by the legislature pursuant to present constitution or the sum of the total amounts
appropriated by act of the legislature from the state general fund and dedicated funds as
of July first of the fiscal year in which the calculation is made, less amounts appropriated
from the state general fund and dedicated funds that were vetoed by the governor and not
overridden by the legislature, plus the total amount of non-appropriated constitutional
requirements reflected on the most recent budget status report submitted to the Joint
Legislative Committee on the Budget pursuant to present law plus an amount equal to
that sum times the growth factor, if the growth factor is positive.
3. Add requirement that certain expenditures be included in any calculation of expenditures
in relation to the expenditure limit.