LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 4 SLS 243ES 20
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: November 7, 2024 5:39 PM Author: HENSGENS
Dept./Agy.: Statewide
Subject: Government Growth Limit Analyst: Chris Henry
APPROPRIATIONS OR SEE FISC NOTE GF EX Page 1 of 2
Limits the amount of money that may be appropriated in a fiscal year. (Item #14)(See Act)
Current Law requires the Division of Administration to provide for the determination of an Expenditure Limit, prohibits appropriations from
the state general fund and dedicated funds from exceeding the official forecast at the time the appropriations are made, establishes timing
and content requirements for the governor’s annual proposed budget, and prohibits the proposed budget from exceeding the lesser of the
official forecast or the Expenditure Limit for the fiscal year being appropriated.
Proposed Law creates a Government Growth Limit, establishes a methodology for setting the limit in subsequent fiscal years, provides for
conditions on lowering the limit, provides for recurring revenues recognized above the limit and allowable uses thereof, provides for
exclusions from the limit, provides for changes to the limit, restricts appropriations above the limit, and establishes content requirements
of the governor’s annual proposed budget.
Contingent upon voter approval of the Constitutional Amendment proposed in SB 3 of the 2024 3ES on March 29, 2025.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 SEE BELOW SEE BELOW SEE BELOW $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 SEE BELOW SEE BELOW SEE BELOW $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
Proposed Law would serve to restrict the legislature’s ability and flexibility to appropriate the entirety of state
revenues available for expenditure. Beginning in FY 27, the Revenue Estimating Conference (REC) would establish the
Government Growth Limit during the first quarter of the calendar year for the next fiscal year based on the calculation
submitted by the Commissioner of Administration. The timing of this requirement could conflict with the required submission
of the Governor’s Executive Budget, which is typically submitted to the JLCB within the first quarter of the calendar year.
Appropriations from the state general fund and dedicated funds above this limit can only be made (up to the Expenditure
Limit or official revenue forecast) for certain nonrecurring purposes.
Calculation:
The calculation procedure for the Government Growth Limit is the sum of the base amount plus the result of the base
multiplied by a positive growth factor. The base is defined in this measure as the prior fiscal year’s appropriations for
recurring expenses from the state general fund and dedicated funds, excluding: 1) appropriations which similarly are not
calculated in the Expenditure Limit, and 2) any amount appropriated in the prior year over the Government Growth Limit and
below the Expenditure Limit for nonrecurring expenses as defined in this proposed law.
The growth factor is derived from the sum of two averages: 1) the annual average percent change in population within
Louisiana as reported by the U.S. Dept. of Commerce and 2) the average of two percentage rates of change over five
calendar years: the average annual chained-consumer price index and the average annual chained consumer medical price
index, both as reported by the U.S. Bureau of Labor Statistics (BLS). Only when the growth factor is positive, is it applied to
the limit and a calculation is executed to develop a new limit. Should the growth factor be negative, the Government Growth
Limit shall be equal to the defined base.
Continued on Page Two
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
State general fund and dedicated funds revenues forecasted above the Government Growth Limit and below the Expenditure
Limit may only be appropriated for nonrecurring expenses. The measure defines “nonrecurring expenses” as one that is not
of a continuing or recurring character which is not expected to be necessary in approximately the same amounts each year
during the normal course of administration.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Patrice Thomas
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 4 SLS 243ES 20
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: November 7, 2024 5:39 PM Author: HENSGENS
Dept./Agy.: Statewide
Subject: Government Growth Limit Analyst: Chris Henry
CONTINUED EXPLANATION from page one: Page 2 of 2
Expenditure Explanation Continued
The Government Growth Limit can never exceed the Expenditure Limit, even if the Expenditure Limit is intentionally lowered
by an act of the legislature. If the Government Growth Limit calculation is greater than the Expenditure Limit, it will be set to
an amount equal to the Expenditure Limit.
Limitations on Expenditures:
If the amount of recurring revenue available for appropriation exceeds the Government Growth Limit but remains under the
Expenditure Limit, revenues may only be appropriated for nonrecurring expenditures. These are defined in the measure as
expenses which are not of a continuing or recurring character and are not expected to be necessary in approximately the
same amounts each year during the normal course of administration. Note: the expenditures defined as nonrecurring
in this measure are not the same as the six restricted uses for revenues recognized as nonrecurring by the REC
found in the current Constitution under Article VII Section 10 (D)(2). Any monies utilized from the Budget
Stabilization Fund will not apply those factored in the Government Growth Limit.
Changing the Limit:
Proposed Law provides that the Government Growth Limit may be changed by a favorable vote of two-thirds of the elected
members of each house through a specific legislative instrument. The Government Growth Limit may only be changed in
years in which the growth factors for the two immediately preceding fiscal years were less than two percent.
Proposed Law provides that any proposal by the governor to exceed the Expenditure Limit or the Government Growth Limit
shall be itemized by program and shall constitute a submission by the governor separate and apart from the executive
budget.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Patrice Thomas
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


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