SSHB13 2549 213
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 13 2024 Third Extraordinary Session Geymann
APPROPRIATIONS: Limits the amount of money that may be appropriated in a fiscal year
(Item #14)
Synopsis of Senate Amendments
1.Limit application of the growth factor to appropriations made from the State
General Fund (Direct) means of finance.
2.Remove appropriations or allocations excluded from calculation of the
expenditure limit from calculation of the base.
3.Establish list of exceptions to application of the Government Growth Limit.
Digest of Bill as Finally Passed by Senate
Proposed law requires the calculation and adoption each year of a Government Growth Limit
("growth limit") that restricts the growth in the total amount of recurring monies from the
State General Fund (Direct) means of finance that 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 (Direct) means of finance for the immediately prior fiscal year,
less certain excepted expenditures (the base), plus the product of the base times the growth
factor. Further provides that any appropriation of revenues above the growth limit and below
the expenditure limit and the official forecast are excepted from calculation of the base.
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 care 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.
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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 establishes exceptions regarding application of the limit to appropriations from
any of the following:
(1)Funds originating from the federal government.
(2)Funds transferred among state agencies, colleges, universities, boards, or
commissions.
(3)Funds originating from self-generated collections by a state agency, college,
university, board or commission.
(4)Funds originating from a statutorily or constitutionally dedicated fund.
(5)Funds from the Budget Stabilization Fund incorporated into the official forecast for
the current fiscal year.
(6)Funds appropriated as a result of certain means of financing substitutions.
(7)Funds appropriated or allocated that are excluded from the analysis of appropriation
totals in relation to the expenditure limit.
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)
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