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 Reengrossed 2024 Third Extraordinary Session Geymann
Abstract: 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 requires the calculation and adoption each year of a growth limit that restricts 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 no later than 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. 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.
Proposed law 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. 7 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)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the original
bill:
1. Delete requirement that growth limit be adopted in the first quarter of each calendar year.
Instead require the growth limit to be adopted no later than the first quarter of each
calendar year.
2. Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Make technical changes.