SLS 243ES-19 ORIGINAL
2024 Third Extraordinary Session
SENATE BILL NO. 3
BY SENATOR HENSGENS AND REPRESENTATI VE GEYMANN
APPROPRIATIONS. Constitutional amendment to limit the amount of money that may be
appropriated in a fiscal year. (2/3-CA13s1(A))(Item #14)
1 A JOINT RESOLUTION
2 Proposing 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 specify an election for
9 submission of the proposition to electors and provide a ballot proposition.
10 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
11 elected to each house concurring, that there shall be submitted to the electors of the state of
12 Louisiana, for their approval or rejection in the manner provided by law, a proposal to
13 amend Article VII, Sections 10(C) and (E) and 11(A) of the Constitution of Louisiana, to
14 read as follows:
15 §10. Expenditure of State Funds
16 Section 10.
17 * * *
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SLS 243ES-19 ORIGINAL
1 (C) Expenditure Limit and Government Growth Limits. (1) Expenditure
2 Limit. (a) The legislature shall provide for the determination of an expenditure limit
3 for each fiscal year to be established during the first quarter of the calendar year for
4 the next fiscal year. However, the expenditure limit for the 1991-1992 Fiscal Year
5 shall be the actual appropriations from the state general fund and dedicated funds for
6 that year except funds allocated by Article VII, Section 4, Paragraphs (D) and (E).
7 For subsequent fiscal years, the limit shall not exceed the expenditure limit for the
8 current fiscal year plus an amount equal to that limit times a positive growth factor.
9 The growth factor is the average annual percentage rate of change of personal
10 income for Louisiana as defined and reported by the United States Department of
11 Commerce for the three calendar years prior to the fiscal year for which the limit is
12 calculated.
13 (2)(b) The expenditure limit may be changed in any fiscal year by a favorable
14 vote of two-thirds of the elected members of each house. Any such change in the
15 expenditure limit shall be approved by passage of a specific legislative instrument
16 which clearly states the intent to change the limit.
17 (3)(c) Beginning with the 1995-1996 Fiscal Year, the expenditure limit shall
18 be determined in accordance with the provisions of Paragraph (J) of this Section. The
19 redetermination of the expenditure limit for each fiscal year from the 1991-1992
20 Fiscal Year through the 1994-1995 Fiscal Year shall only be used in computing the
21 expenditure limit for the 1995-1996 Fiscal Year and shall not affect the expenditure
22 limit already computed in accordance with this Paragraph for such fiscal years.
23 (4) The provisions of this Paragraph shall not apply to or affect funds
24 allocated by Article VII, Section 4, Paragraphs (D) and (E).
25 (2) Government Growth Limit. (a) Beginning with a limit for the 2026-
26 2027 fiscal year, there shall be a limit for each fiscal year above which
27 appropriation of recurring revenue from the state general fund and dedicated
28 funds can only be made for the purposes provided in this Subparagraph. Such
29 limit shall be known as the Government Growth Limit and shall be established
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1 by the Revenue Estimating Conference during the first quarter of the calendar
2 year for the next fiscal year. The legislature shall establish procedures by law
3 for the calculation of such limit.
4 (b) Notwithstanding any provision of this Subparagraph, if the
5 Government Growth Limit calculated for any fiscal year exceeds the
6 expenditure limit calculated for the same fiscal year, the Government Growth
7 Limit shall be set equal to the expenditure limit. If the legislature alters the
8 expenditure limit in a fiscal year and the resulting limit is lower than the
9 Government Growth Limit for that fiscal year, the Government Growth Limit
10 for that fiscal year shall automatically be lowered to equal the limit set by the
11 legislature for the expenditure limit.
12 (c) Recurring revenue amounts recognized in the official forecast above
13 the Government Growth Limit and below the expenditure limit may be
14 appropriated only for nonrecurring expenses. For the purposes of this Item, the
15 term "nonrecurring expense" means an expense that is not of a continuing or
16 recurring character and that in the normal course of administration is not
17 expected to be necessary in approximately the same amounts each year.
18 (d) The limit calculated pursuant to the provisions of this Subparagraph
19 shall not apply to the appropriation of funds from the Budget Stabilization
20 Fund incorporated into the official forecast for the current fiscal year.
21 (e) A Government Growth Limit may be changed by a favorable vote of
22 two-thirds of the elected members of each house of the legislature if each of the
23 growth factors for the two fiscal years immediately preceding the year to be
24 changed was two percent or less. Any change in the Government Growth Limit
25 authorized by this Subsubparagraph shall be approved by passage of a specific
26 legislative instrument which clearly states the intent to change the limit.
27 (3) The provisions of this Paragraph shall not apply to or affect funds
28 allocated by Article VII, Section 4, Paragraphs (D) and (E).
29 * * *
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1 (E) Balanced Budget. Appropriations by the legislature from the state general
2 fund and dedicated funds for any fiscal yearyear, except funds allocated by Article
3 VII, Section 4, Paragraphs (D) and (E)(E), shall not exceed the official forecast in
4 effect at the time the appropriations are made. Appropriations of recurring
5 revenue from the state general fund and dedicated funds, shall comply with the
6 provisions of Subparagraph (C)(2) of this Section.
7 * * *
8 §11. Budgets
9 Section 11.(A) Budget Estimate. The governor shall submit to the legislature,
10 at the time and in the form fixed by law, a budget estimate for the next fiscal year
11 setting forth all proposed state expenditures. This budget shall include a
12 recommendation for appropriations from the state general fund and from dedicated
13 funds, except funds allocated by Article VII, Section 4, Paragraphs (D) and (E),
14 which shall not exceed the official forecast of the Revenue Estimating Conference
15 and the expenditure limit for the fiscal year. The recommendation shall also comply
16 with the provisions of Article VII, SectionSections 10(C)(2) and (D). This budget
17 shall include a recommendation for funding of state salary supplements for full-time
18 law enforcement and fire protection officers of the state, as provided in Article VII,
19 Section 10(D)(3) of this constitution.
20 * * *
21 Section 2. Notwithstanding any provision of this Act to the contrary, the Government
22 Growth Limit for the 2026-2027 Fiscal Year shall equal the base, plus the product of such
23 amount and three percent. For the purposes of this Section, "the base" shall mean the total
24 of appropriations for recurring expenses from the state general fund and dedicated funds for
25 the immediately prior fiscal year; however, the base shall not include any appropriation or
26 allocation excluded from analysis of appropriation totals in relation to the expenditure limit.
27 Section 3. Be it further resolved that this proposed amendment shall be submitted to
28 the electors of the state of Louisiana at the statewide election to be held on March 29, 2025.
29 Section 4. Be it further resolved that on the official ballot to be used at the election,
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1 there shall be printed a proposition, upon which the electors of the state shall be permitted
2 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
3 follows:
4 Do you support an amendment to require the legislature to establish a
5 procedure for the calculation of a limit to restrict any increase in the amount
6 of recurring revenue the legislature may appropriate from state general fund
7 and dedicated funds in any fiscal year; to provide restrictions on use of
8 monies available for appropriation in excess of such limit; to authorize
9 exceptions to the limit in certain circumstances; and to require the governor's
10 proposed budget each year to conform to such limit?
11 (Amends Article VII, Sections 10(C) and (E) and 11(A))
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Curry Lann.
DIGEST
SB 3 Original 2024 Third Extraordinary Session Hensgens
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 2026-2027 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 during 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.
Additionally provides that the initial growth limit (for Fiscal Year 2026-2027) shall equal
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.
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
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appropriation of funds from the Budget Stabilization Fund incorporated into the official
forecast for the current fiscal year.
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 the two fiscal years
immediately preceding the year to be changed was two 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.
Specifies submission of the amendment to the voters at the statewide election to be held
March 29, 2025.
(Amends Const. Art. VII, Sec. 10(C) and (E) and 11(A))
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