ENROLLED ACT No. 14 2024 Third Extraordinary Session HOUSE BILL NO. 13 BY REPRESENTATIVE GEYMANN AND SENATORS BASS, CATHEY, CLOUD, EDMONDS, FESI, HENRY, HENSGENS, HODGES, KLEINPETER, MIGUEZ, MILLER, PRESSLY, SEABAUGH, STINE, AND WOMACK 1 AN ACT 2 To amend and reenact R.S. 39:34(C), 38(B), and 54(C) and to enact R.S. 39:33.3, relative 3 to state finances; to provide relative to the calculation of a limit above which certain 4 funds may be appropriated only for certain purposes; to provide relative to 5 exceptions; to provide for definitions; to provide relative to the authority of the 6 governor; to provide relative to the powers and duties of the commissioner of 7 administration; to provide relative to the powers and duties of the Revenue 8 Estimating Conference; to provide for a special effective date; and to provide for 9 related matters. 10 Be it enacted by the Legislature of Louisiana: 11 Section 1. R.S. 39:34(C), 38(B), and 54(C) are hereby amended and reenacted and 12 R.S. 39:33.3 is hereby enacted to read as follows: 13 §33.3. Determination of Government Growth Limit 14 A. The Government Growth Limit, hereafter referred to in this Section as the 15 "growth limit", shall be established by the Revenue Estimating Conference no later 16 than the first quarter of each calendar year for the next fiscal year and is a limit 17 above which appropriation of recurring revenue from the State General Fund (Direct) 18 means of finance shall be made only for the purposes provided in this Section. The 19 commissioner of administration shall cause a calculation of the ensuing year's growth 20 limit to be submitted to the Revenue Estimating Conference each year for the 21 conference's consideration and adoption. 22 B. After adoption by the Revenue Estimating Conference, the chairman of 23 the conference shall cause the growth limit for the ensuing fiscal year to be Page 1 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 13 ENROLLED 1 submitted to the Joint Legislative Committee on the Budget by the deadline for 2 submission of the executive budget to such committee. 3 C.(1) If the growth factor provided in this Paragraph is positive, the growth 4 limit for the ensuing fiscal year shall be calculated as the sum of the base plus the 5 result of the base times the growth factor in accordance with the following 6 provisions: 7 (a) The growth factor shall only be applied to the base once for each annual 8 calculation and shall equal the sum of the following: 9 (i) The average annual percentage rate of change in population for Louisiana, 10 as defined and reported by the United States Department of Commerce, or its 11 successor agency, for the five calendar years prior to the fiscal year for which the 12 limit is calculated. 13 (ii) The average of the following: 14 (aa) The average annual percentage rate of change through December of the 15 chained consumer price index for the United States as defined and reported by the 16 United States Department of Labor, Bureau of Labor Statistics, or its successor 17 agency, for the five calendar years prior to the fiscal year for which the limit is 18 calculated. 19 (bb) The average annual percentage rate of change through December of the 20 chained consumer medical care price index for the United States as defined and 21 reported by the United States Department of Labor, Bureau of Labor Statistics, or its 22 successor agency, for the five calendar years prior to the fiscal year for which the 23 limit is calculated. 24 (b) The figures used for the calculation of the growth factor shall be those 25 actual or estimated figures most recently reported at the time the growth limit is 26 adopted by the Revenue Estimating Conference. 27 (c) The base shall be the total of appropriations for recurring expenses from 28 the State General Fund (Direct) means of finance for the immediately prior fiscal 29 year; however, the base shall not include any appropriations made pursuant to 30 Subsection D of this Section. Page 2 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 13 ENROLLED 1 (2) If the growth factor provided in Paragraph (1) of this Subsection is 2 negative, the growth limit for the ensuing fiscal year shall be equal to the base, as 3 defined in Paragraph (1) of this Subsection. 4 D. Recurring revenue amounts recognized in the official forecast above the 5 growth limit and below the expenditure limit shall be appropriated only for 6 nonrecurring expenses. For the purposes of this Subsection, the term "nonrecurring 7 expense" means an expense that is not of a continuing or recurring character and that 8 in the normal course of administration is not expected to be necessary in 9 approximately the same amounts each year. 10 (E) The limit calculated pursuant to the provisions of this Subparagraph shall 11 not apply to the appropriation of the following state funds: 12 (1) Any funds originating from the federal government. 13 (2) Any funds being transferred among state agencies, colleges, universities, 14 boards, or commissions. 15 (3) Any funds originating from self-generated collections by a state agency, 16 college, university, board or commission. 17 (4) Any funds originating from a statutorily or constitutionally dedicated 18 fund. 19 (5) Any funds from the Budget Stabilization Fund incorporated into the 20 official forecast for the current fiscal year. 21 (6) Any funds appropriated as a result of a means of financing substitution 22 resulting in an increase in the State General Fund (Direct) means of finance to 23 compensate for a decrease in federal funding, funds transferred from another state 24 entity, self-generated collections, or statutorily or constitutionally dedicated funds. 25 (7) Any funds appropriated or allocated that are excluded from the analysis 26 of appropriation totals in relation to the expenditure limit. 27 §34. Executive budget 28 * * * 29 C. The executive budget recommendations for appropriations shall not 30 exceed the expenditure limit for the ensuing fiscal year. Additionally, executive Page 3 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 13 ENROLLED 1 budget recommendations for appropriation of recurring revenue shall not exceed the 2 government growth limit for the ensuing fiscal year. 3 * * * 4 §38. Additional proposals 5 * * * 6 B. Any proposal by the governor to exceed the expenditure limit limit, the 7 government growth limit, or both shall be itemized by program and shall constitute 8 a submission by the governor separate and apart from the executive budget. 9 * * * 10 §54. Limitations on appropriations 11 * * * 12 C. Appropriations by the legislature from the state general fund and 13 dedicated funds for any fiscal year shall not exceed the expenditure limit and shall 14 be in conformity with the requirements of R.S. 39:33.3. 15 * * * 16 Section 2. This Act shall take effect and become operative if and when the proposed 17 amendment of Article VII of the Constitution of Louisiana contained in the Act which 18 originated as House Bill No. 7 of this 2024 Third Extraordinary Session of the Legislature 19 is adopted at a statewide election and becomes effective. SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 4 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions.