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 295 Engrossed 2025 Regular Session Tarver
Abstract: Beginning with Fiscal Year 2027-2028, 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 2027-2028 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.
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 2027-2028)
as equal to the appropriations for recurring expenses from the state general fund and dedicated funds
for Fiscal Year 2026-2027 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, 2027.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
November 3, 2026.
(Amends Const. Art. VII, §§10(C) and (E) and 11(A))