Louisiana HB 524: BUDGETARY CONTROLS: (Constitutional Amendment) Provides relative to the expenditure limit (OR SEE FISC NOTE GF EX See Note)

Bill Text

HLS 20RS-630 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 524
BY REPRESENTATIVE AMEDEE
BUDGETARY CONTROLS: (Constitutional Amendment) Provides relative to the
expenditure limit
1 A JOINT RESOLUTION
2 Proposing to amend Article VII, Section 10(C)(1) and (2) of the Constitution of Louisiana,
3 relative to the expenditure limit; to provide for changing the expenditure limit; to
4 provide for the determination of the growth factor of the expenditure limit; to limit
5 the growth of the expenditure limit; to provide for submission of the proposed
6 amendment to the electors; and to provide for related matters.
7 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
8 elected to each house concurring, that there shall be submitted to the electors of the state of
9 Louisiana, for their approval or rejection in the manner provided by law, a proposal to
10 amend Article VII, Section 10(C)(1) and (2) of the Constitution of Louisiana, to read as
11 follows:
12 §10. Expenditure of State Funds
13 Section 10.
14 * * *
15 (C) Expenditure Limit. (1) The legislature shall provide for the
16 determination of an expenditure limit for each fiscal year to be established during the
17 first quarter of the calendar year for the next fiscal year. However, the expenditure
18 limit for the 1991-1992 Fiscal Year shall be the actual appropriations from the state
19 general fund and dedicated funds for that year except funds allocated by Article VII,
20 Section 4, Paragraphs (D) and (E). For subsequent fiscal years, the limit shall not
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.

HLS 20RS-630 ORIGINAL
HB NO. 524
1 exceed the expenditure limit for the current fiscal year plus an amount equal to that
2 limit times multiplied by a positive growth factor. The growth factor is the average
3 annual percentage rate of change of personal income for Louisiana as defined and
4 reported by the United States Department of Commerce for the three calendar years
5 prior to the fiscal year for which the limit is calculated legislature by law shall
6 establish a procedure to determine the growth factor, which shall not exceed six
7 percent. Any law establishing a procedure to determine the growth factor, once
8 enacted, shall not be changed except by specific legislative instrument which
9 received a favorable vote of two-thirds of the elected members of each house of the
10 legislature.
11 (2) The expenditure limit may be changed in any fiscal year by a favorable
12 vote of consent of two-thirds of the elected members of each house. Any If the
13 legislature is in session, any such change in the expenditure limit shall be approved
14 by passage of a specific legislative instrument which clearly states the intent to
15 change the limit. If the legislature is not in session, the two-thirds requirement may
16 be satisfied upon obtaining written consent of two-thirds of the elected members of
17 each house in a manner provided by law.
18 * * *
19 Section 2. Be it further resolved that this proposed amendment shall be submitted
20 to the electors of the state of Louisiana at the statewide election to be held on November 3,
21 2020.
22 Section 3. Be it further resolved that on the official ballot to be used at the election,
23 there shall be printed a proposition, upon which the electors of the state shall be permitted
24 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
25 follows:
26 Do you support an amendment to limit the annual growth of the expenditure
27 limit, and to allow the legislature to establish in law the method of
28 determining the expenditure limit? (Amends Article VII, Section 10(C)(1)
29 and (2))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.

HLS 20RS-630 ORIGINAL
HB NO. 524
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 524 Original 2020 Regular Session Amedee
Abstract: Caps the annual growth factor of the expenditure limit at 6%, allows the growth
factor to be established by law that requires 2/3 vote of each house of the legislature
to change, and provides for changing the expenditure limit when the legislature is not
in session.
Present constitution provides for the determination of the expenditure limit for the next fiscal
year to be determined in the first quarter of the calendar year for the current fiscal year. The
expenditure limit for the next fiscal year is based on the expenditure limit for the current
fiscal year multiplied by a growth factor based on the change of personal income in the state.
Present constitution defines the growth factor as the average annual percentage rate of
chan