HLS 25RS-875 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 283
BY REPRESENTATIVE TARVER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
APPROPRIATIONS: Limits the amount of recurring State General Fund (Direct) revenues
that may be appropriated in a fiscal year for recurring expenses and restricts use of
such revenues above that limit
1 AN ACT
2To 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 and the Revenue Estimating Conference; to provide for a special
8 effective date; and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 39:34(C), 38(B), and 54(C) are hereby amended and reenacted and
11R.S. 39:33.3 is hereby enacted to read as follows:
12 §33.3. Determination of Government Growth Limit
13 A. The Government Growth Limit, hereafter referred to in this Section as the
14 "growth limit", shall be established by the Revenue Estimating Conference no later
15 than the first quarter of each calendar year for the next fiscal year and is a limit
16 above which appropriation of recurring revenue from the State General Fund (Direct)
17 means of finance shall be made only for the purposes provided in this Section. The
18 commissioner of administration shall cause a calculation of the ensuing year's growth
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HB NO. 283
1 limit to be submitted to the Revenue Estimating Conference each year for the
2 conference's consideration and adoption.
3 B. After adoption by the Revenue Estimating Conference, the chairman of
4 the conference shall cause the growth limit for the ensuing fiscal year to be
5 submitted to the Joint Legislative Committee on the Budget by the deadline for
6 submission of the executive budget to such committee.
7 C.(1) If the growth factor provided in this Paragraph is positive, the growth
8 limit for the ensuing fiscal year shall be calculated as the sum of the base plus the
9 result of the base times the growth factor in accordance with the following
10 provisions:
11 (a) The growth factor shall only be applied to the base once for each annual
12 calculation and shall equal the sum of the following:
13 (i) The average annual percentage rate of change in population for Louisiana,
14 as defined and reported by the United States Department of Commerce, or its
15 successor agency, for the five calendar years prior to the fiscal year for which the
16 limit is calculated.
17 (ii) The average of the following:
18 (aa) The average annual percentage rate of change through December of the
19 chained consumer price index for the United States as defined and reported by the
20 United States Department of Labor, Bureau of Labor Statistics, or its successor
21 agency, for the five calendar years prior to the fiscal year for which the limit is
22 calculated.
23 (bb) The average annual percentage rate of change through December of the
24 chained consumer medical care price index for the United States as defined and
25 reported by the United States Department of Labor, Bureau of Labor Statistics, or its
26 successor agency, for the five calendar years prior to the fiscal year for which the
27 limit is calculated.
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HB NO. 283
1 (b) The figures used for the calculation of the growth factor shall be those
2 actual or estimated figures most recently reported at the time the growth limit is
3 adopted by the Revenue Estimating Conference.
4 (c) The base shall be the total of appropriations for recurring expenses from
5 the State General Fund (Direct) means of finance for the last full fiscal year
6 immediately prior to the calculation of the limit; however, the base shall not include
7 any appropriations made pursuant to Subsection D of this Section.
8 (2) If the growth factor provided in Paragraph (1) of this Subsection is
9 negative, the growth limit for the ensuing fiscal year shall be equal to the base, as
10 defined in Paragraph (1) of this Subsection.
11 D. Recurring revenue amounts recognized in the official forecast above the
12 growth limit and below the expenditure limit shall be appropriated only for
13 nonrecurring expenses. For the purposes of this Subsection, the term "nonrecurring
14 expense" means an expense that is not of a continuing or recurring character and that
15 in the normal course of administration is not expected to be necessary in
16 approximately the same amounts each year.
17 E. The provisions of Subsection (D) of this Section shall not apply to
18 appropriation of any of the following:
19 (1) Any funds from the Budget Stabilization Fund incorporated into the
20 official forecast for the current fiscal year.
21 (2) Any funds appropriated as a result of a means of finance 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 (3) 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 * * *
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HB NO. 283
1 C. The executive budget recommendations for appropriations shall not
2 exceed the expenditure limit for the ensuing fiscal year. Additionally, executive
3 budget recommendations for appropriation of recurring revenue shall not exceed the
4 government growth limit for the ensuing fiscal year.
5 * * *
6 §38. Additional proposals
7 * * *
8 B. Any proposal by the governor to exceed the expenditure limit limit, the
9 government growth limit, or both shall be itemized by program and shall constitute
10 a submission by the governor separate and apart from the executive budget.
11 * * *
12 §54. Limitations on appropriations
13 * * *
14 C. Appropriations by the legislature from the state general fund and
15 dedicated funds for any fiscal year shall not exceed the expenditure limit and shall
16 be in conformity with the requirements of R.S. 39:33.3.
17 * * *
18 Section 2. This Act shall take effect and become operative if and when the proposed
19amendment of Article VII of the Constitution of Louisiana contained in the Act which
20originated as House Bill No. ___ of this 2025 Regular Session of the Legislature is adopted
21at a statewide election and becomes effective.
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
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HB NO. 283
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.
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HB NO. 283
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)
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