House Bill No. HLS 243ES-3 proposes a constitutional amendment to amend Article VII of the Louisiana Constitution, specifically Sections 10(C), (E), and 11(A), to establish a Government Growth Limit starting with the 2025-2026 fiscal year. This amendment aims to restrict the growth of recurring revenue appropriations from the state general fund and dedicated funds, allowing such appropriations to exceed the established limit only for specific purposes. The Revenue Estimating Conference will be responsible for calculating this limit, which must be done no later than the first quarter of the calendar year preceding the fiscal year in question. The bill also allows for changes to the growth limit by a two-thirds vote of the legislature under certain conditions.

Additionally, the amendment retains existing provisions that prohibit appropriations from exceeding the official forecast at the time of appropriation and requires that the governor's proposed budget comply with the new growth limit. The initial growth limit for the 2025-2026 fiscal year is set to be calculated based on the previous year's appropriations plus a three percent increase. The proposed amendment will be submitted to voters for approval in a statewide election scheduled for March 29, 2025.