LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SCR 3 SLS 23RS 325
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 8, 2023 9:20 AM Author: CORTEZ
Dept./Agy.:
Subject: Expenditure Limit Analyst: Chris Henry
FISCAL CONTROLS EN SEE FISC NOTE Page 1 of 1
Provides for the expenditure limit for Fiscal Year 2022-2023 and Fiscal Year 2023-2024. (2/3-CA7s10)
Present Law specifies that the expenditure limit for the ensuing fiscal year shall 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 U.S.
Department of Commerce defines and reports personal income for the state. The limit is calculated once per year near the
beginning of the calendar year for use in the ensuing fiscal year. The limit applies to appropriations of all money required to
be deposited into the state treasury except federal sourced funds, higher education self-generated revenue, interagency
transfers, and the constitutional allocations to the parish severance tax and royalty receipt distributions. The limit for FY 23
is $15,889,263,342 and for FY 24 is $16,497,721,252. Proposed resolution establishes the expenditure limit for FY 23 at
$16,139,263,343, an increase of $250,000,000 or 1.6%. It also establishes the limit for FY 24 at $17,897,721,252, an
increase of $1,400,000,000 or 8.5%.
EXPENDITURES 2023-24 2024-25 2025-26 2026-27 2027-28 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW $0 $0 $0 $0 $0
Ded./Other SEE BELOW $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
REVENUES 2023-24 2024-25 2025-26 2026-27 2027-28 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
The proposed resolution establishes the expenditure limit for FY 23 at $16,139,263,342, an increase of $250,000,000 or 1.6%. It also
establishes the limit for FY 24 at $17,897,721,252, an increase of $1,400,000,000 or 8.5%.
Fiscal Year 2022-23
According to the methodology used by the Division of Administration, the initial FY 23 appropriations, which are included in the
expenditure limit calculation totaled $15,047,810,621 ($10.2 B SGF, $1.7 B SGR, $3.2 B Dedications). Factoring all increases and
reductions made throughout the year through March 2023 via BA-7 budget adjustments, capital outlay change orders, and supplemental
appropriations made in the 1st Extraordinary Session, a total of $15,404,851,711 in appropriations have been made which count against
the expenditure limit. Currently, that leaves $484,411,631 available for appropriation before exceeding the limit. When
combined with the increase proposed in this resolution, $734,411,631 would be available before the limit is reached.
Fiscal Year 2023-24
The Expenditure Limit for FY 24 was approved by the Joint Legislative Committee on the Budget on February 17, 2023, and set at
$16,497,721,252, a 3.83% increase over the FY 23 limit based on the growth factors in statute. Using information provided by the
Division of Administration based on the Executive Budget Recommendation, a total of $15,971,288,568 ($10.8 B SGF, $1.7 B SGR, $3.4 B
Dedications) is factored into the limit calculation after exclusions are removed. This would leave $526,432,684 available for
additional appropriations before exceeding the limit. When combined with the increase proposed in this resolution,
$1,926,432,684 would be available before the limit is reached.
There is currently $472,238,335 in Surplus SGF from FY 22 available for appropriation after the required 10% ($72.7 M) for the UAL
payments and 25% ($181.6 M) transfer to the Budget Stabilization Fund are removed. Additionally, there is $1.21 B in FY 23 SGF Excess
available for appropriation after the Revenue Estimating Conference (REC) forecast increased in December 2022 ($928.5 M) and May 2023
($323.4 M) and after $45 M was utilized in the first special session of 2023. These amounts combined total $1.68 B, all of which is
available for appropriation during the 2023 Regular Session. Additionally, the REC forecast adopted in May 2023 increased the available
SGF available for appropriation in FY 24 by $483.3 M.
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}
13.5.2 >= $500,000 Annual Tax or Fee Evan Brasseaux
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Deputy Fiscal Officer