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HLS 26RS-1208 ENGROSSED
2026 Regular Session
HOUSE BILL NO. 646
BY REPRESENTATIVE BEAULLIEU
APPROPRIATIONS: (Constitutional Amendment) Limits the amount of state general fund
that may be appropriated in a fiscal year
1 A JOINT RESOLUTION
2 Proposing to amend Article VII, Sections 10(C) and (E) and 11(A) of the Constitution of
3 Louisiana and to add Article VII, Section 10.18 of the Constitution of Louisiana,
4 relative to state finances; to provide for calculation of a limit above which use of
5 certain funds may be restricted to certain purposes; to provide for exceptions to
6 calculation and application of the limit; to authorize the legislature to change the
7 limit in certain circumstances; to provide for the establishment of an initial limit; to
8 establish the Louisiana Income Tax Elimination fund and provide for the deposit,
9 use, and investment of monies therein; to provide relative to the duties of the
10 governor with respect to state finances; to provide with respect to the powers and
11 duties of the Revenue Estimating Conference in relation to the limit; to provide for
12 submission of the proposed amendment to the electors; and to provide for related
13 matters.
14 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
15 elected to each house concurring, that there shall be submitted to the electors of the state of
16 Louisiana, for their approval or rejection in the manner provided by law, a proposal to
17 amend Article VII, Sections 10(C) and (E) and 11(A) of the Constitution of Louisiana and
18 to add Article VII, Section 10.18 of the Constitution of Louisiana, to read as follows:
19 §10. Expenditure of State Funds
20 Section 10.
21 * * *
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HLS 26RS-1208 ENGROSSED
HB NO. 646
1 (C) Expenditure Limit. and Government Growth Limits. (1) Expenditure
2 Limit. (a) The legislature shall provide for the determination of an expenditure limit
3 for each fiscal year to be established during the first quarter of the calendar year for
4 the next fiscal year. However, the expenditure limit for the 1991-1992 Fiscal Year
5 shall be the actual appropriations from the state general fund and dedicated funds for
6 that year except funds allocated by Article VII, Section 4, Paragraphs (D) and (E).
7 For subsequent fiscal years, the limit shall not exceed the expenditure limit for the
8 current fiscal year plus an amount equal to that limit times a positive growth factor.
9 The growth factor is the average annual percentage rate of change of personal
10 income for Louisiana as defined and reported by the United States Department of
11 Commerce for the three calendar years prior to the fiscal year for which the limit is
12 calculated.
13 (2) (b) The expenditure limit may be changed in any fiscal year by a
14 favorable vote of two-thirds of the elected members of each house. Any such change
15 in the expenditure limit shall be approved by passage of a specific legislative
16 instrument which clearly states the intent to change the limit.
17 (3) (c) Beginning with the 1995-1996 Fiscal Year, the expenditure limit shall
18 be determined in accordance with the provisions of Paragraph (J) of this Section.
19 The redetermination of the expenditure limit for each fiscal year from the 1991-1992
20 Fiscal Year through the 1994-1995 Fiscal Year shall only be used in computing the
21 expenditure limit for the 1995-1996 Fiscal Year and shall not affect the expenditure
22 limit already computed in accordance with this Paragraph for such fiscal years.
23 (4) The provisions of this Paragraph shall not apply to or affect funds
24 allocated by Article VII, Section 4, Paragraphs (D) and (E).
25 (2) Government Growth Limit. (a) Beginning with a limit for the 2027-
26 2028 fiscal year, there shall be a limit for each fiscal year above which appropriation
27 of recurring revenue from the State General Fund (Direct) means of finance can only
28 be made for the purposes provided in this Subparagraph. Such limit shall be known
29 as the Government Growth Limit and shall be established by the Revenue Estimating
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HB NO. 646
1 Conference no later than the first quarter of the calendar year for the next fiscal year.
2 The legislature shall establish procedures by law for the calculation and application
3 of such limit.
4 (b) Except as otherwise provided in this Constitution, the legislature shall not
5 appropriate or transfer any recurring revenue amounts recognized in the official
6 forecast for the State General Fund (Direct) means of finance that are above the
7 Government Growth Limit and below the expenditure limit. If the legislature
8 changes the Government Growth Limit for a fiscal year, provides an exception to the
9 Government Growth Limit as provided in Subsubparagraph (c) of this Subparagraph,
10 or both, then the legislature shall not cause the aggregate amount of all appropriated
11 and all transferred recurring State General Fund (Direct) revenues above the
12 applicable Government Growth Limit to exceed the aggregate amount of all such
13 changes for that same fiscal year.
14 (c) The legislature may provide by law for exceptions to application of the
15 limit calculated pursuant to the provisions of this Section.
16 (d) A Government Growth Limit may be changed by a favorable vote of
17 two-thirds of the elected members of each house of the legislature if each of the
18 growth factors for each of the two fiscal years immediately preceding the year to be
19 changed was two percent or less. Any change in the Government Growth Limit
20 authorized by this Subsubparagraph shall be approved by passage of a specific
21 legislative instrument which clearly states the intent to change the limit.
22 (3) The provisions of this Paragraph shall not apply to or affect funds
23 allocated by Article VII, Section 4, Paragraphs (D) and (E).
24 * * *
25 (E) Balanced Budget. Appropriations by the legislature from the state
26 general fund and dedicated funds for any fiscal year year, except funds allocated by
27 Article VII, Section 4, Paragraphs (D) and (E), shall not exceed the official forecast
28 or the Government Growth Limit in effect at the time the appropriations are made.
29 * * *
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HB NO. 646
1 § 10.18. Louisiana Income Tax Elimination Fund
2 Section 10.18. (A) There is hereby established in the state treasury the
3 Louisiana Income Tax Elimination Fund, hereafter referred to in this Section as the
4 "fund".
5 (B) After allocation of money to the Bond Security and Redemption Fund
6 as provided in Article VII, Section 9(B) of this Constitution, the treasurer shall
7 annually deposit in and credit to the fund all recurring state general fund revenues
8 received by the state in excess of the Government Growth Limit and below the
9 official forecast for that fiscal year.
10 (C) Monies in the fund shall be invested in the same manner as monies in the
11 state general fund. All interest earned from the investment of monies in the fund
12 shall be deposited in and credited to the fund. All unexpended and unencumbered
13 monies in the fund at the end of the fiscal year shall remain in the fund.
14 (D) Monies in the fund shall be appropriated only for the following:
15 (1) For the same purposes and under the same conditions as appropriation
16 of monies in the Budget Stabilization Fund.
17 (2) For the retiring or defeasance of bonds in advance or in addition to the
18 existing amortization requirements of the state.
19 (3) For payments against the unfunded accrued liability of one or more state
20 retirement systems which are in addition to any payments required for the annual
21 amortization of the unfunded accrued liability of the system; however, any such
22 payments shall not be used, directly or indirectly, to fund any benefit increase for
23 such system.
24 (4) For costs associated with actual project delivery, construction, and
25 maintenance of transportation and capital transit infrastructure projects of the state
26 and local government.
27 * * *
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HB NO. 646
1 §11. Budgets
2 Section 11.(A) Budget Estimate. The governor shall submit to the
3 legislature, at the time and in the form fixed by law, a budget estimate for the next
4 fiscal year setting forth all proposed state expenditures. This budget shall include
5 a recommendation for appropriations from the state general fund and from dedicated
6 funds, except funds allocated by Article VII, Section 4, Paragraphs (D) and (E),
7 which shall not exceed the official forecast of the Revenue Estimating Conference
8 and the expenditure limit for the fiscal year. The recommendation shall also comply
9 with the provisions of Article VII, Section Sections 10(C)(2) and (D). This budget
10 shall include a recommendation for funding of state salary supplements for full-time
11 law enforcement and fire protection officers of the state, as provided in Article VII,
12 Section 10(D)(3) of this constitution.
13 * * *
14 Section 2. (A) Notwithstanding any provision of this Act to the contrary, the
15 Government Growth Limit for the 2027-2028 Fiscal Year shall equal the base, plus the
16 product of such amount and three percent. For the purposes of this Section, "the base" shall
17 mean the total of appropriations for recurring expenses from the State General Fund (Direct)
18 means of finance for the immediately prior fiscal year; however, the base shall not include
19 any of the following:
20 (1) Any appropriation or allocation excluded from analysis of appropriation and
21 transfer totals in relation to the expenditure limit.
22 (2) Any funds appropriated as a result of a means of financing substitution
23 resulting in an increase in the State General Fund (Direct) means of finance
24 to compensate for a decrease in federal funding, funds transferred from
25 another state entity, self-generated collections, or statutorily or
26 constitutionally dedicated funds.
27 (B) The commissioner of administration shall cause the limit for Fiscal Year 2027-
28 2028 to be calculated pursuant to the provisions of this Section and shall submit such limit
29 to the Joint Legislative Committee on the Budget no later than January 31, 2027.
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HB NO. 646
1 Section 3. Be it further resolved that this proposed amendment shall be submitted
2 to the electors of the state of Louisiana at the statewide election to be held on November 3,
3 2026.
4 Section 4. Be it further resolved that on the official ballot to be used at the election,
5 there shall be printed a proposition, upon which the electors of the state shall be permitted
6 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
7 follows:
8 Do you support an amendment to require the legislature to establish a
9 procedure for the calculation of a limit to restrict any increase in the amount
10 of recurring revenue the legislature may appropriate from the state general
11 fund in any fiscal year; to provide restrictions on use and transfer of monies
12 available for appropriation in excess of this limit; to authorize exceptions to
13 the limit in certain circumstances; and to require the governor's proposed
14 budget each year to conform to this limit? (Amends Article VII, Sections
15 10(C) and (E) and 11(A)); Adds Article VII, Section 10.18)
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 646 Engrossed 2026 Regular Session Beaullieu
Abstract: Beginning with Fiscal Year 2027-2028, establishes the Government Growth
Limit (growth limit) and requires deposit into the La. Income Tax Elimination Fund
(fund) of all recurring state general fund revenues recognized above the growth limit
and below the official forecast.
GROWTH LIMIT
Present constitution (Art. VII, §10) requires the legislature to provide for the determination
of an expenditure limit for each fiscal year for state general fund and dedicated fund
appropriations. Proposed constitutional amendment retains present constitution.
Proposed constitutional amendment (Art. VII, §10) further establishes the growth limit for
Fiscal Year 2027-2028 and for each fiscal year thereafter. Requires all recurring State
General Fund (Direct) monies above the growth limit and below the official forecast for the
applicable fiscal year to be deposited into the fund. Requires the Revenue Estimating
Conference to adopt a growth limit no later than the first quarter of the calendar year for the
ensuing fiscal year. Further requires the legislature to provide by law for a procedure to
calculate such limit.
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HB NO. 646
Proposed law authorizes the legislature to change a growth limit by a favorable vote of
two-thirds of the elected members of each house if each of the growth factors for each of the
two fiscal years immediately preceding the year to be changed was 2% or less. Requires any
change to the limit be approved by passage of a specific legislative instrument which clearly
states the intent to change the limit.
Proposed constitutional amendment exempts certain severance and royalty payments made
pursuant to present constitution (Art. VII, §4(D) and (E)) from the provisions of proposed
constitutional amendment.
FUND
Proposed law establishes the fund in the state treasury and requires deposit into the fund of
all recurring state general fund revenues received by the state between the growth limit and
the official forecast for that year. Provides for investment of monies in the fund and for
deposit of interest earned on fund monies into the fund. Requires unexpended and
unencumbered monies in the fund at the end of the fiscal year to remain in the fund.
Restricts use of monies in the fund to the following:
(1) For budget shortfalls and deficits, subject to the same conditions as appropriation of
monies from the Budget Stabilization Fund.
(2) For the retiring or defeasance of bonds in advance or in addition to the existing
amortization requirements of the state.
(3) For payments against the unfunded accrued liability of state retirement systems;
however, any such payment is prohibited from being used directly or indirectly to
fund any benefit increase.
(4) For costs associated with actual project delivery, construction, and maintenance of
transportation and capital transit infrastructure projects of the state and local
government.
MISCELLANEOUS BUDGET PROVISIONS
Present constitution prohibits appropriations from the State General Fund (Direct) means of
finance for any fiscal year from exceeding the official forecast in effect at the time the
appropriations are made. Proposed constitutional amendment retains present constitution.
Further requires appropriations of recurring revenues to comply with the provisions of
proposed constitutional amendment regarding the growth limit.
Present constitution (Art. VII, Sec. 11(A)) establishes timing and content requirements for
the governor's annual proposed budget. Prohibits the proposed budget from exceeding the
official forecast and the expenditure limit for the fiscal year being appropriated. Proposed
constitutional amendment retains present constitution. Present constitution requires the
proposed budget to comply with the provisions of present constitution regarding use of
nonrecurring revenues. Proposed constitutional amendment also requires the proposed
budget to comply with the provisions of the growth limit.
Proposed constitutional amendment establishes the initial growth limit (for Fiscal Year
2027-2028) as equal to the appropriations for recurring expenses from the State General
Fund (Direct) means of finance for Fiscal Year 2025-2026 plus the product of such amount
and 3%. Provides for calculation of the base for the initial growth limit. Requires the
commissioner of administration to calculate such limit and submit it to the Joint Legislative
Committee on the Budget no later than Jan. 31, 2027.
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HB NO. 646
Provides for submission of the proposed amendment to the voters at the statewide election
to be held November 3, 2026.
(Amends Const. Art. VII, §§10(C) and (E) and 11(A); Adds Const. Art. VII, §10.18)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
original bill:
1. Remove provisions restricting expenditure of state general fund revenues above
the limit to nonrecurring expenses.
2. Add provision prohibiting the legislature from appropriating or transferring any
state general fund monies above the growth limit for a given fiscal year. Provide
exceptions if the limit is changed and if the legislature exempts a transaction
from application of the growth limit as provided in proposed constitutional
amendment.
3. Establish the La. Income Tax Elimination Fund and provide for the deposit, use,
and investment of monies in the fund.
4. Add exception to calculation of the base for the initial growth limit.
5. Modify criteria pursuant to which the legislature may change a growth limit.
6. Make technical and conforming changes.
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