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 mandates that the Revenue Estimating Conference (REC) calculate this growth limit annually during the first quarter of each calendar year, which will then be submitted to the Joint Legislative Committee on the Budget. The growth limit is determined based on a formula that includes the previous year's appropriations and a growth factor derived from population changes and consumer price indices. If the growth factor is negative, the growth limit will equal the base amount of appropriations from the prior fiscal 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 laws that prohibit executive budget recommendations from exceeding the expenditure limit and now includes the growth limit as an additional constraint. The bill also requires that any proposal by the governor to exceed either the expenditure limit or the growth limit be itemized 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)