HLS 243ES-3 ENGROSSED
2024 Third Extraordinary Session
HOUSE BILL NO. 14
BY REPRESENTATIVE GEYMANN AND SENATOR HENSGENS
APPROPRIATIONS: (Constitutional Amendment) Limits the amount of money that may
be appropriated in a fiscal year (Item #14)
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Sections 10(C) and (E) and 11(A) of the Constitution of
3 Louisiana, relative to state finances; to provide for calculation of a limit above which
4 certain funds may only be appropriated for certain purposes; to provide for
5 exceptions; to authorize the legislature to change the limit in certain circumstances;
6 to provide for the establishment of an initial limit; to provide relative to the duties
7 of the governor with respect to state finances; to provide with respect to the powers
8 and duties of the Revenue Estimating Conference; and to provide for related matters.
9 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10elected to each house concurring, that there shall be submitted to the electors of the state of
11Louisiana, for their approval or rejection in the manner provided by law, a proposal to
12amend Article VII, Sections 10(C) and (E) and 11(A) of the Constitution of Louisiana, to
13read as follows:
14 §10. Expenditure of State Funds
15 Section 10.
16 * * *
17 (C) Expenditure Limit. and Government Growth Limits. (1) Expenditure
18 Limit. (a) The legislature shall provide for the determination of an expenditure limit
19 for each fiscal year to be established during the first quarter of the calendar year for
20 the next fiscal year. However, the expenditure limit for the 1991-1992 Fiscal Year
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1 shall be the actual appropriations from the state general fund and dedicated funds for
2 that year except funds allocated by Article VII, Section 4, Paragraphs (D) and (E).
3 For subsequent fiscal years, the limit shall not exceed the expenditure limit for the
4 current fiscal year plus an amount equal to that limit times a positive growth factor.
5 The growth factor is the average annual percentage rate of change of personal
6 income for Louisiana as defined and reported by the United States Department of
7 Commerce for the three calendar years prior to the fiscal year for which the limit is
8 calculated.
9 (2) (b) The expenditure limit may be changed in any fiscal year by a
10 favorable vote of two-thirds of the elected members of each house. Any such change
11 in the expenditure limit shall be approved by passage of a specific legislative
12 instrument which clearly states the intent to change the limit.
13 (3) (c) Beginning with the 1995-1996 Fiscal Year, the expenditure limit shall
14 be determined in accordance with the provisions of Paragraph (J) of this Section.
15 The redetermination of the expenditure limit for each fiscal year from the 1991-1992
16 Fiscal Year through the 1994-1995 Fiscal Year shall only be used in computing the
17 expenditure limit for the 1995-1996 Fiscal Year and shall not affect the expenditure
18 limit already computed in accordance with this Paragraph for such fiscal years.
19 (4) The provisions of this Paragraph shall not apply to or affect funds
20 allocated by Article VII, Section 4, Paragraphs (D) and (E).
21 (2) Government Growth Limit. (a) Beginning with a limit for the 2025-
22 2026 fiscal year, there shall be a limit for each fiscal year above which appropriation
23 of recurring revenue from the state general fund and dedicated funds can only be
24 made for the purposes provided in this Subparagraph. Such limit shall be known as
25 the Government Growth Limit and shall be established by the Revenue Estimating
26 Conference no later than the first quarter of the calendar year for the next fiscal year.
27 The legislature shall establish procedures by law for the calculation of such limit.
28 (b) Notwithstanding any provision of this Subparagraph, if the Government
29 Growth Limit calculated for any fiscal year exceeds the expenditure limit calculated
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1 for the same fiscal year, the Government Growth Limit shall be set equal to the
2 expenditure limit. If the legislature alters the expenditure limit in a fiscal year and
3 the resulting limit is lower than the Government Growth Limit for that fiscal year,
4 the Government Growth Limit for that fiscal year shall automatically be lowered to
5 equal the limit set by the legislature for the expenditure limit.
6 (c) Recurring revenue amounts recognized in the official forecast above the
7 Government Growth Limit and below the expenditure limit may be appropriated
8 only for nonrecurring expenses. For the purposes of this Item, the term
9 "nonrecurring expense" means an expense that is not of a continuing or recurring
10 character and that in the normal course of administration is not expected to be
11 necessary in approximately the same amounts each year.
12 (d) The limit calculated pursuant to the provisions of this Subparagraph shall
13 not apply to the appropriation of funds from the Budget Stabilization Fund
14 incorporated into the official forecast for the current fiscal year.
15 (e) A Government Growth Limit may be changed by a favorable vote of
16 two-thirds of the elected members of each house of the legislature if each of the
17 growth factors for any of the three fiscal years immediately preceding the year to be
18 changed was two and one-half percent or less. Any change in the Government
19 Growth Limit authorized by this Subsubparagraph shall be approved by passage of
20 a specific legislative instrument which clearly states the intent to change the limit.
21 (3) The provisions of this Paragraph shall not apply to or affect funds
22 allocated by Article VII, Section 4, Paragraphs (D) and (E).
23 * * *
24 (E) Balanced Budget. Appropriations by the legislature from the state
25 general fund and dedicated funds for any fiscal year year, except funds allocated by
26 Article VII, Section 4, Paragraphs (D) and (E), shall not exceed the official forecast
27 in effect at the time the appropriations are made. Appropriations of recurring
28 revenue from the state general fund and dedicated funds, shall comply with the
29 provisions of Subparagraph (C)(2) of this Section.
30 * * *
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1 §11. Budgets
2 Section 11.(A) Budget Estimate. The governor shall submit to the
3 legislature, at the time and in the form fixed by law, a budget estimate for the next
4 fiscal year setting forth all proposed state expenditures. This budget shall include
5 a recommendation for appropriations from the state general fund and from dedicated
6 funds, except funds allocated by Article VII, Section 4, Paragraphs (D) and (E),
7 which shall not exceed the official forecast of the Revenue Estimating Conference
8 and the expenditure limit for the fiscal year. The recommendation shall also comply
9 with the provisions of Article VII, Section Sections 10(C)(2) and (D). This budget
10 shall include a recommendation for funding of state salary supplements for full-time
11 law enforcement and fire protection officers of the state, as provided in Article VII,
12 Section 10(D)(3) of this constitution.
13 * * *
14 Section 2. Notwithstanding any provision of this Act to the contrary, the
15Government Growth Limit for the 2025-2026 Fiscal Year shall equal the base, plus the
16product of such amount and three percent. For the purposes of this Section, "the base" shall
17mean the total of appropriations for recurring expenses from the state general fund and
18dedicated funds for the immediately prior fiscal year; however, the base shall not include any
19appropriation or allocation excluded from analysis of appropriation totals in relation to the
20expenditure limit. The commissioner of administration shall cause the limit for Fiscal Year
212025-2026 to be calculated pursuant to the provisions of this Section and shall submit such
22limit to the Joint Legislative Committee on the Budget no later than January 31, 2025.
23 Section 3. Be it further resolved that this proposed amendment shall be submitted
24to the electors of the state of Louisiana at the statewide election to be held on March 29,
252025.
26 Section 4. Be it further resolved that on the official ballot to be used at the election,
27there shall be printed a proposition, upon which the electors of the state shall be permitted
28to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
29follows:
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1 Do you support an amendment to require the legislature to establish a
2 procedure for the calculation of a limit to restrict any increase in the amount
3 of recurring revenue the legislature may appropriate from state general fund
4 and dedicated funds in any fiscal year; to provide restrictions on use of
5 monies available for appropriation in excess of such limit; to authorize
6 exceptions to the limit in certain circumstances; and to require the governor's
7 proposed budget each year to conform to such limit? (Amends Article VII,
8 Sections 10(C) and (E) and 11(A))
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 14 Engrossed 2024 Third Extraordinary Session Geymann
Abstract: Beginning with Fiscal Year 2025-2026, establishes 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.
Present constitution (Art. VII, §10) requires the legislature to provide for the determination
of an expenditure limit for each fiscal year for state general fund and dedicated fund
appropriations. Proposed constitutional amendment retains present constitution.
Proposed constitutional amendment (Art. VII, §10) further establishes the growth limit for
Fiscal Year 2025-2026 and for each fiscal year thereafter. Except in certain limited
circumstances provided in proposed constitutional amendment, prohibits spending of
recurring revenues above such limit. Requires the Revenue Estimating Conference to adopt
a growth limit no later than the first quarter of the calendar year for the ensuing fiscal year.
Further requires the legislature to provide by law for a procedure to calculate such limit.
Proposed constitutional amendment requires that if the growth limit calculated for any fiscal
year exceeds the expenditure limit calculated for the same fiscal year, the growth limit shall
be equal to the expenditure limit for that fiscal year. Additionally provides that if the
legislature lowers the expenditure limit in a fiscal year and the resulting limit is lower than
the growth limit for that fiscal year, the growth limit for that fiscal year is automatically
lowered to equal the expenditure limit set by the legislature.
Proposed constitution restricts appropriation of recurring revenue amounts recognized in the
official forecast above the growth limit and below the expenditure limit to nonrecurring
expenses. For the purposes of proposed constitutional amendment, 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 constitutional amendment 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.
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Further authorizes the legislature to change a growth limit by a favorable vote of two-thirds
of the elected members of each house if each of the growth factors for any of the three fiscal
years immediately preceding the year to be changed was two and one-half percent or less.
Requires any change to the limit be approved by passage of a specific legislative instrument
which clearly states the intent to change the limit.
Proposed constitutional amendment exempts certain severance and royalty payments made
pursuant to present constitution (Art. VII, §4(D) and (E)) from the provisions of proposed
constitutional amendment.
Present constitution prohibits appropriations from the state general fund and dedicated funds
for any fiscal year from exceeding the official forecast in effect at the time the appropriations
are made. Proposed constitutional amendment retains present constitution. Further requires
appropriations of recurring revenues to comply with the provisions of proposed
constitutional amendment regarding the growth limit.
Present constitution (Art. VII, Sec. 11(A)) establishes timing and content requirements for
the governor's annual proposed budget. Prohibits the proposed budget from exceeding the
official forecast and the expenditure limit for the fiscal year being appropriated. Proposed
constitutional amendment retains present constitution. Present constitution requires the
proposed budget to comply with the provisions of present constitution regarding use of
nonrecurring revenues. Proposed constitutional amendment also requires the proposed
budget to comply with the provisions of the growth limit.
Proposed constitutional amendment establishes the initial growth limit (for Fiscal Year
2025-2026) as equal to the appropriations for recurring expenses from the state general fund
and dedicated funds for Fiscal Year 2024-2025 plus the product of such amount and three
percent. Requires the commissioner of administration to calculate such limit and submit it
to the Joint Legislative Committee on the Budget no later than Jan. 31, 2025.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held March 29, 2025.
(Amends Const. Art. VII, §§10(C) and (E) and 11(A))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
original bill:
1. Change implementation of growth limit from FY 2026-2027 to FY 2025-2026.
2. Delete requirement that REC establish the growth limit for the next fiscal year
during the first quarter of the calendar year. Instead requires REC to establish
such limit no later than the first quarter of the calendar year.
3. Delete authorization for the legislature to change a growth limit if the growth
factor for the two fiscal years preceding the year to be changed was two percent
or less. Adds authorization for the legislature to change a growth limit if the
growth factor for any of the three preceding fiscal years was two and one-half
percent or less.
4. Add provision requiring commissioner of administration to calculate the initial
growth limit (for FY 2025-2026) pursuant to the provisions of proposed law and
to submit such limit to the Joint Legislative Committee on the Budget no later
than Jan. 31, 2025.
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