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 Reengrossed 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 and the calculation of
expenditures in relation to 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. Provides that, for all years after the 1991-1992 fiscal year, the expenditure
limit shall not exceed the expenditure limit for the current fiscal year plus an amount equal to that
limit times a positive growth factor. Further establishes the growth factor as the average annual
percentage rate of change of personal income for La. as reported by the U.S. Dept. of Commerce for
the three calendar years prior to the fiscal year for which the limit is calculated.
Present constitution authorizes the legislature to change the expenditure limit in any fiscal year by
a favorable vote of two-thirds of the elected members of each house on a specific legislative
instrument that clearly states the intent to change the expenditure limit.
Present law (R.S. 39:33.1) establishes the determination 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. 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 equal the lesser of the
following amounts plus an amount equal to that amount times the growth factor, if the growth factor
is positive:
(1)The aggregate of the following amounts:
(a)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.
(b)The total amount of certain specified non-appropriated payments made by the state
each year.
(c)The total amount of funds carried forward from a prior fiscal year into the current
fiscal year, unless otherwise excluded pursuant to proposed law.
(2)The limit for the current fiscal year established by the legislature pursuant to the authority
granted in present constitution.
Present law provides that after the calculation of the expenditure limit 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 certain specified non-appropriated payments made by the state each year.
(2)The total expenditures of monies held by the state in a fiduciary capacity, to the extent such
monies are not excluded pursuant to proposed law.
(3)The total amount of funds carried forward from a prior fiscal year into the current fiscal year,
unless otherwise excluded pursuant to proposed law.
Further requires JLCB to meet no later than October 2022 to determine the state general fund and
dedicated funds (as defined in present law) that do not count towards the calculation of the
expenditure limit and towards the calculation of expenditures in relation to the expenditure limit (as
provided in proposed 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 JLCB, 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 JLCB
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.
The House Floor Amendments to the engrossed bill:
1. Remove provision requiring the growth factor to only be applied to one component of
the expenditure limit calculation and instead require the growth factor to be applied to
whichever component of the calculation is determined to be the lesser amount.
2. Add provision specifying that the limit established by the legislature pursuant to the
constitution, which is a component of the calculation of the expenditure limit pursuant
to proposed law, is the limit established for the fiscal year in which the calculation is
made.
3. Add provisions enumerating the non-appropriated expenditures to be used in determining
a component of the expenditure limit calculation.
4. Add provision requiring sums carried forward from a prior fiscal year to be used in
determining a component of the expenditure limit calculation.
5. Add provision requiring the JLCB to meet no later than October 2022 to determine the
state general fund and dedicated funds that do not count towards the calculation of the
expenditure limit and towards the calculation of expenditures in relation to the
expenditure limit.