Louisiana House Bill HB295

Louisiana 2025 Regular Session

• Introduced: 4/2/25
• Refer: 4/2/25
• Refer: 4/14/25
• Refer: 4/22/25
• Refer: 4/23/25

Caption

(Constitutional Amendment) Limits the amount of 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 (EG SEE FISC NOTE GF EX)

Impact

The bill would amend existing provisions related to state fund expenditure limits, thereby potentially reshaping how the state allocates its budget. It requires the establishment of a method by the legislature to calculate this growth limit, reinforcing rules around fiscal accountability. Additionally, the bill would mandate that an initial growth limit is set based on prior expenditures plus a three percent increase, making it clear how budget growth will be managed moving forward.

Summary

House Bill 295, proposed by Representative Tarver, seeks to amend the Constitution of Louisiana to establish a Government Growth Limit starting with the fiscal year 2027-2028. This legislation aims to restrict the total amount of state general fund and dedicated fund revenues that the legislature may appropriate for recurring expenses in any given fiscal year. Under this bill, spending above the growth limit would only be permissible for nonrecurring expenses, a move intended to ensure greater fiscal discipline in state budgeting practices.

Sentiment

Initial discussions around HB 295 indicate a positive sentiment among proponents who argue that this measure is essential for maintaining a balanced budget and preventing reckless spending. However, concerns have also been raised about the limitations it imposes on the state's ability to respond flexibly to financial crises or unexpected demands, particularly regarding emergency funding. Critics fear that strict adherence to the growth limit could hinder effective governance.

Contention

A notable point of contention surrounding HB 295 centers on the implications it carries for local governments and state services. Proponents assert that it will enforce necessary fiscal discipline, while opponents highlight the potential risks of reducing funding flexibility in times of need, such as natural disasters or public health emergencies. This debate underscores a broader discussion about the balance between fiscal responsibility and the need for responsive governance in Louisiana.