Senate Bill No. 4, introduced by Senator Hensgens and Representative Geymann, aims to establish a Government Growth Limit for state appropriations, specifically for recurring revenue from the state general fund and dedicated funds. The bill amends existing laws and introduces new provisions under R.S. 39:33.3, which mandates the Revenue Estimating Conference to calculate and adopt a growth limit for the upcoming fiscal year during the first quarter of each calendar year. The calculation of this limit will be based on the previous year's appropriations and a growth factor derived from population changes and consumer price indices over the past five years. If the growth factor is negative, the growth limit will equal the base amount from the previous year.

Additionally, the bill stipulates that any recurring revenue recognized above the growth limit and below the expenditure limit can only be appropriated for nonrecurring expenses. It retains existing prohibitions on exceeding the expenditure limit while adding that executive budget recommendations for recurring revenue must also adhere to the newly established growth limit. The bill further requires that any proposals by the governor to exceed either limit be itemized and submitted separately from the executive budget. The provisions of this bill will take effect only if a proposed amendment to Article VII of the Louisiana Constitution is adopted in a statewide election.

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