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 283 Original 2025 Regular Session Tarver
Abstract: 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 for
recurring expenses.
Proposed law 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 last full fiscal year immediately prior to the
calculation of the limit, less certain excepted expenditures (the base), plus the product of the base
times the growth factor. As more fully explained below, additionally provides that certain
appropriations 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 U.S. Dept. 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
U.S. Dept. 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 U.S. Dept. 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 requires the growth limit for the ensuing year to 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 from the Budget Stabilization Fund incorporated into the official forecast for the
current fiscal year.
(2)Funds appropriated as a result of certain means of financing substitutions.
(3)Funds appropriated or allocated that are excluded from the analysis of appropriation totals
in relation to the expenditure limit.
Present law prohibits the executive budget recommendations for appropriations from exceeding the
expenditure limit for the ensuing fiscal year. Proposed law further prohibits executive budget
recommendations for appropriations of recurring revenue from exceeding the growth limit for the
ensuing fiscal year.
Present law 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 prohibits appropriations from the state general fund and dedicated funds for any fiscal
year from exceeding the expenditure limit. Proposed law 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. ___ of the 2025 Regular 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)