LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 273 HLS 21RS 668
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 10, 2021 2:56 PM Author: BEAULLIEU
Dept./Agy.: Division of Administration
Subject: Expenditure Limit Analyst: Chris Keaton
BUDGETARY CONTROLS RE SEE FISC NOTE EX See Note Page 1 of 1
(Constitutional Amendment) Provides for changes in the expenditure limit calculation
Present constitution requires an expenditure limit for the ensuing fiscal year to be the limit for the current fiscal year
multiplied by a positive growth factor. The growth factor is defined as the average annual percentage rate of change of
personal income for Louisiana for the three calendar years prior to the fiscal year for which the limit is calculated. The limit
for any fiscal year may be changed by a two-thirds vote of the legislature.
Proposed constitutional amendment requires an expenditure limit for the ensuing fiscal year to be the amount appropriated
from the state general fund and dedicated funds for the current fiscal year multiplied by a growth factor. The legislature
shall establish a procedure by law to determine the growth factor, which shall not exceed 5%. That law may be changed by
a two-thirds vote of the legislature. These provisions are made effective on June 30, 2023. To be submitted to the electors
at the statewide election to be held on November 8, 2022.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 SEE BELOW SEE BELOW $0
Agy. Self-Gen. $0 $0 $0 SEE BELOW SEE BELOW $0
Ded./Other $0 $0 $0 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 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 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
Currently, the provisions in R.S. 39:33.1 establish the specific procedure for implementing the expenditure limit, subject to
the present authorizing constitutional provisions that this joint resolution proposes to amend. A companion bill (HB 276) to
this joint resolution proposes to amend the associated provisions of R.S. 39:33.1, contingent upon adoption of this joint
resolution by the electorate. Assuming that this constitutional amendment is adopted in November 2022, the bill provides
that its provisions are effective on June 30, 2023. There is a statutory companion (HB 276), that if enacted this session,
would presumably be effective on June 30, 2023, as well.
Expenditure limit calculations are done in late December each year for use in the Executive Budget and appropriations for
the ensuing fiscal year. From a practical perspective, the effectiveness language of this bill would seem to apply the new
growth factor calculation contained in the statutory bill to the expenditure limit calculation for FY25 and subsequent years.
The implications of the proposed change to the expenditure limit are discussed in the fiscal note for HB 276.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
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}
Gregory V. Albrecht
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Chief Economist