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 13 Original 2024 Third Extraordinary Session Geymann
Abstract: Beginning with Fiscal Year 2025-2026, establishes a calculation for the Government
Growth Limit (growth limit) to restrict the growth in the total amount of recurring state
general fund and dedicated fund monies the legislature may appropriate in any fiscal year and
provides for uses of any recognized recurring revenues above the growth limit and below the
expenditure limit.
Proposed law establishes the growth limit for Fiscal Year 2026-2027 and for each fiscal year
thereafter to restrict the growth in the total amount of recurring state general fund and dedicated fund
monies the legislature may appropriate in any fiscal year. Requires the commissioner of
administration to submit a calculation of the ensuing year's growth limit to Revenue Estimating
Conference (REC) each year for the conference's consideration and adoption. Requires the REC to
adopt a growth limit for the ensuing fiscal year during the first quarter of each calendar year. Further
requires the chairman of REC to submit the adopted limit for the ensuing fiscal year to the Joint
Legislative Committee on the Budget by the deadline for submission of the executive budget each
year.
Proposed law establishes the calculation for the growth limit. If the growth factor, described below,
is positive, the calculation is the sum of the appropriations for recurring expenses from the state
general fund and dedicated funds for the immediately prior fiscal year, less certain excepted
expenditures (the base), plus the product of the base times the growth factor, as defined in proposed
law. Expenditures excepted from calculation of the base are:
(1)Any appropriation of revenues above the growth limit and below the expenditure limit and
the official forecast.
(2)Any appropriation or allocation excluded from analysis of appropriation totals in relation to
the expenditure limit.
Establishes calculation of the "growth factor" as the sum of the following:
(1)The average annual percentage rate of change in population for Louisiana, as defined and
reported by the United States Department of Commerce, or its successor agency, for the five
calendar years prior to the fiscal year for which the growth limit is calculated.
(2)The average of the following: (a)The average annual percentage rate of change through December of the
chained-consumer price index for the United States as defined and reported by the
United States Department of Labor, Bureau of Labor Statistics, or its successor
agency, for the five calendar years prior to the fiscal year for which the growth limit
is calculated.
(b)The average annual percentage rate of change through December of the
chained-consumer medical price index for the United States as defined and reported
by the United States Department of Labor, Bureau of Labor Statistics, or its successor
agency, for the five calendar years prior to the fiscal year for which the growth limit
is calculated.
If the growth factor is negative, proposed law provides that the growth limit for the ensuing year
shall equal the base.
Requires figures used in calculation of the growth limit to be those most recently reported at the time
the growth limit is adopted by REC.
Proposed law provides that recurring revenue amounts recognized in the official forecast above the
growth limit and below the expenditure limit may only be appropriated for nonrecurring expenses.
For the purposes of proposed law, the term "nonrecurring expense" means an expense that is not of
a continuing or recurring character and that in the normal course of administration is not expected
to be necessary in approximately the same amounts each year.
Proposed law provides that the growth limit does not apply to the appropriation of funds from the
Budget Stabilization Fund incorporated into the official forecast for the current fiscal year.
For purposes of proposed law, defines the term "state general fund and dedicated funds" to have the
same meaning as present constitution (Art. VII, Sec.10).
Present law (R.S. 39:34) prohibits the executive budget recommendations for appropriations from
exceeding the expenditure limit for the ensuing fiscal year. Proposed law retains present law and
further prohibits executive budget recommendations for appropriations of recurring revenue from
exceeding the growth limit for the ensuing fiscal year.
Present law (R.S. 39:38) requires any proposal by the governor to exceed the expenditure limit to
be itemized by program and to constitute a submission by the governor separate and apart from the
executive budget. Proposed law provides that any proposal by the governor to exceed the
expenditure limit, the growth limit, or both shall constitute a separate submission from the executive
budget.
Present law (R.S. 39:54) prohibits appropriations from the state general fund and dedicated funds
for any fiscal year from exceeding the expenditure limit. Proposed law retains present law and
further requires appropriations to be in conformity with proposed law relative to the growth 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. ___ of the 2024 Third Extraordinary Session of the
Legislature is adopted at a statewide election and becomes effective.
(Amends R.S. 39:34(C), 38(B), and 54(C); Adds R.S. 39:33.3)