GREEN SHEET REDIGEST
HB 13 2024 Third Extraordinary Session Geymann
APPROPRIATIONS: Limits the amount of money that may be appropriated in a fiscal
year (Item #14)
DIGEST
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
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Prepared by Heather McKnight. 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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the
reengrossed bill
1. Changes the application of the growth limit from state general fund and
dedicated funds to the State General Fund (Direct).
2. Clarifies the revenues and expenditures being excluded from the application
of the growth limit.
3. Makes technical changes.
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Prepared by Heather McKnight.