Senate Bill No. [insert bill number] aims to establish a Government Growth Limit for the appropriation of recurring revenue from the state general fund and dedicated funds in Louisiana. The bill amends existing laws and introduces new provisions under R.S. 39:33.3, which mandates the Revenue Estimating Conference to calculate and adopt a growth limit for the upcoming fiscal year during the first quarter of each calendar year. The calculation of this limit will be based on the previous year's appropriations for recurring expenses, adjusted by a growth factor that considers population changes and inflation rates. If the growth factor is negative, the growth limit will simply equal the base amount from the prior year.

Additionally, the bill stipulates that any recurring revenue recognized above the growth limit and below the expenditure limit can only be appropriated for nonrecurring expenses. It retains existing prohibitions on exceeding the expenditure limit while adding that executive budget recommendations for recurring revenue must also adhere to the newly established growth limit. The bill further requires that any proposal by the governor to exceed either the expenditure limit or the growth limit must be submitted separately from the executive budget. The provisions of this bill will take effect only if a proposed amendment to Article VII of the Louisiana Constitution is adopted in a statewide election.

Statutes affected:
SB4 Original: 39:34(C), 39:38(B), 39:54(C)