House Bill No. HLS 243ES-3 proposes a constitutional amendment to establish a Government Growth Limit for the state of Louisiana, which will restrict the growth of recurring revenue appropriations from the state general fund and dedicated funds starting with the 2025-2026 fiscal year. The bill outlines that the legislature must determine an expenditure limit for each fiscal year, and the Government Growth Limit will be set by the Revenue Estimating Conference. If the calculated growth limit exceeds the expenditure limit for a fiscal year, it will be adjusted to match the expenditure limit. Additionally, any recurring revenue recognized above the growth limit but below the expenditure limit can only be appropriated for nonrecurring expenses.

The proposed amendment also allows for changes to the Government Growth Limit by a two-thirds vote of the legislature under specific conditions, and it requires that the governor's proposed budget conform to the established limits. The initial growth limit for the 2025-2026 fiscal year will be calculated based on the previous year's appropriations plus a three percent increase. The bill mandates that the initial limit be submitted to the Joint Legislative Committee on the Budget by January 31, 2025, and it will be presented to voters for approval in a statewide election on March 29, 2025.