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HLS 26RS-1196 REENGROSSED
2026 Regular Session
HOUSE BILL NO. 824
BY REPRESENTATIVE BEAULLIEU
APPROPRIATIONS: Limits the amount of state general fund that may be appropriated in
a fiscal year
1 AN ACT
2 To amend and reenact R.S. 39:34(C), 38(B), and 54(C) and to enact R.S. 39:33.3, relative
3 to state finances; to provide relative to the calculation of a limit above which use of
4 certain funds may be restricted to certain purposes; to provide relative to exceptions;
5 to provide for definitions; to provide relative to the authority of the governor; to
6 provide relative to the powers and duties of the commissioner of administration; to
7 provide relative to the powers and duties of the Revenue Estimating Conference; to
8 provide for a special effective date; and to provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 39:34(C), 38(B), and 54(C) are hereby amended and reenacted and
11 R.S. 39:33.3 is hereby enacted to read as follows:
12 §33.3. Determination of Government Growth Limit
13 A. The Revenue Estimating Conference shall establish the Government
14 Growth Limit, hereafter referred to in this Section as the "growth limit", no later than
15 the first quarter of each calendar year for the next fiscal year. Except as provided in
16 Subsection D of this Section, the commissioner of administration shall cause a
17 calculation of the ensuing year's growth limit to be submitted to the Revenue
18 Estimating Conference each year.
19 B. After adoption by the Revenue Estimating Conference, the chairman of
20 the conference shall submit the growth limit for the ensuing fiscal year to the Joint
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1 Legislative Committee on the Budget by the deadline for submission of the executive
2 budget to such committee.
3 C.(1) If the growth factor provided in this Paragraph is positive, the growth
4 limit for the ensuing fiscal year shall be calculated as the sum of the base plus the
5 result of the base times the growth factor in accordance with the following
6 provisions:
7 (a) The growth factor shall only be applied to the base once for each annual
8 calculation and shall equal the sum of the following:
9 (i) The average annual percentage rate of change in population for Louisiana,
10 as defined and reported by the United States Department of Commerce, or its
11 successor agency, for the five calendar years prior to the fiscal year for which the
12 limit is calculated.
13 (ii) The average of the following:
14 (aa) The average annual percentage rate of change through December of the
15 chained consumer price index for the United States as defined and reported by the
16 United States Department of Labor, Bureau of Labor Statistics, or its successor
17 agency, for the five calendar years prior to the fiscal year for which the limit is
18 calculated.
19 (bb) The average annual percentage rate of change through December of the
20 chained consumer medical care price index for the United States as defined and
21 reported by the United States Department of Labor, Bureau of Labor Statistics, or its
22 successor agency, for the five calendar years prior to the fiscal year for which the
23 limit is calculated.
24 (b) The figures used for the calculation of the growth factor shall be those
25 actual or estimated figures most recently reported at the time the growth limit is
26 adopted by the Revenue Estimating Conference.
27 (c) The base shall be the total of appropriations for ordinary recurring
28 expenses from the State General Fund (Direct) means of finance for the immediately
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1 prior fiscal year; however, the base shall not include any appropriations made
2 pursuant to Subsection D and Paragraphs (E)(2) and (3) of this Section.
3 (2) If the growth factor provided in Paragraph (1) of this Subsection is
4 negative, the growth limit for the ensuing fiscal year shall be equal to the base, as
5 defined in Paragraph (1) of this Subsection.
6 D. Notwithstanding any provision of this Section to the contrary, if the
7 legislature changes the limit for a fiscal year pursuant to Article VII, Section 10(C)
8 of the Constitution of Louisiana, the limit for the immediately following fiscal year
9 shall equal the last limit established by the Revenue Estimating Conference.
10 E. The limit calculated pursuant to the provisions of this Subparagraph shall
11 not apply to the appropriation of the following:
12 (1) Any funds from the Budget Stabilization Fund or the Louisiana Income
13 Tax Elimination Fund incorporated into the official forecast for the current fiscal
14 year.
15 (2) Any funds appropriated as a result of a means of financing substitution
16 resulting in an increase in the State General Fund (Direct) means of finance to
17 compensate for a decrease in federal funding, funds transferred from another state
18 entity, self-generated collections, or statutorily or constitutionally dedicated funds.
19 (3) Any funds appropriated or allocated that are excluded from the analysis
20 of appropriation totals in relation to the expenditure limit.
21 §34. Executive budget
22 * * *
23 C. The executive budget recommendations for appropriations shall not
24 exceed the expenditure limit for the ensuing fiscal year. Additionally, executive
25 budget recommendations for appropriation of recurring revenue shall not exceed the
26 applicable government growth limit.
27 * * *
28 §38. Additional proposals
29 * * *
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1 B. Any proposal by the governor to exceed the expenditure limit limit, the
2 government growth limit, or both shall be itemized by program and shall constitute
3 a submission by the governor separate and apart from the executive budget.
4 * * *
5 §54. Limitations on appropriations
6 * * *
7 C. Appropriations by the legislature from the state general fund and
8 dedicated funds for any fiscal year shall not exceed the expenditure limit and shall
9 be in conformity with the requirements of R.S. 39:33.3.
10 * * *
11 Section 2. This Act shall take effect and become operative if and when the proposed
12 amendment of Article VII of the Constitution of Louisiana contained in the Act which
13 originated as House Bill No. 646 of this 2026 Regular Session of the Legislature is adopted
14 at a statewide election and becomes effective.
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 824 Reengrossed 2026 Regular Session Beaullieu
Abstract: Establishes a calculation for the Government Growth Limit (growth limit) to
restrict growth in the total amount of recurring State General Fund (Direct) means
of finance that the legislature may transfer or appropriate in any fiscal year and
requires deposit into the La. Income Tax Elimination Fund (fund) of any recognized
recurring state general fund revenues above the growth limit and below the
expenditure limit.
Proposed law requires the calculation and adoption each year of a growth limit that restricts
the growth in the total amount of recurring monies from the State General Fund (Direct)
means of finance that the legislature may transfer or appropriate in any fiscal year. Requires
the commissioner of administration to submit a calculation of the ensuing year's growth limit
to Revenue Estimating Conference (REC) each year. Requires the REC to establish a growth
limit for the ensuing fiscal year no later than the first quarter of each calendar year. Further
requires the chairman of REC annually to submit the limit for the ensuing fiscal year to the
Joint Legislative Committee on the Budget by the deadline for submission of the executive
budget.
Proposed law establishes the calculation for the growth limit. If the growth factor, described
below, is positive, the calculation is the sum of the appropriations for ordinary recurring
expenses from the State General Fund (Direct) means of finance for the immediately prior
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fiscal year, less certain excepted expenditures (the base), plus the product of the base times
the growth factor.
Proposed law establishes calculation of the "growth factor" as the sum of the following:
(1) The average annual percentage rate of change in population for La., as defined and
reported by the U.S. Department of Commerce, or its successor agency, for the five
calendar years prior to the fiscal year for which the growth limit is calculated.
(2) The average of the following:
(a) The average annual percentage rate of change through December of the
chained-consumer price index for the U.S. as reported by the U.S. Dept. of
Labor, Bureau of Labor Statistics, for the five calendar years prior to the
fiscal year for which the growth limit is calculated.
(b) The average annual percentage rate of change through December of the
chained-consumer medical care price index for the U.S. as reported by the
U.S. Dept. of Labor, Bureau of Labor Statistics, for the five calendar years
prior to the fiscal year for which the growth limit is calculated.
If the growth factor is negative, proposed law provides that the growth limit for the ensuing
year shall equal the base.
Proposed law requires figures used in calculation of the growth limit to be those most
recently reported at the time the growth limit is adopted by REC.
Proposed law provides that if the legislature changes the growth limit for a fiscal year, then
the growth limit for the immediately following fiscal year shall equal the last limit
established by the REC.
Proposed law establishes exceptions regarding application of the limit to appropriations from
any of the following:
(1) Funds from the Budget Stabilization Fund or the La. Income Tax Elimination Fund
incorporated into the official forecast for the current fiscal year.
(2) Funds appropriated as a result of certain means of financing substitutions.
(3) Funds appropriated or allocated that are excluded from the analysis of appropriation
totals in relation to the expenditure limit.
Present law (R.S. 39:34) prohibits the executive budget recommendations for appropriations
from exceeding the expenditure limit for the ensuing fiscal year. Proposed law retains
present law and further prohibits executive budget recommendations for appropriations of
recurring revenue from exceeding the applicable growth limit.
Present law (R.S. 39:38) requires any proposal by the governor to exceed the expenditure
limit to be itemized by program and to constitute a submission by the governor separate and
apart from the executive budget. Proposed law provides that any proposal by the governor
to exceed the expenditure limit, the growth limit, or both shall constitute a separate
submission from the executive budget.
Present law (R.S. 39:54) prohibits appropriations from the state general fund and dedicated
funds for any fiscal year from exceeding the expenditure limit. Proposed law retains present
law and further requires appropriations to be in conformity with proposed law relative to the
growth limit.
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Effective if and when the proposed amendment of Article VII of the Constitution of La.
contained in the Act which originated as House Bill No. 646 of the 2026 Regular Session
of the Legislature is adopted at a statewide election and becomes effective.
(Amends R.S. 39:34(C), 38(B), and 54(C); Adds R.S. 39:33.3)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
original bill:
1. Establish the growth limit for the ensuing fiscal year at a certain level if the
legislature changes the growth limit for the current fiscal year.
2. Establish exception to the growth limit for funds incorporated into the official
forecast from the La. Income Tax Elimination Fund.
3. Make technical and conforming changes.
The House Floor Amendments to the engrossed bill:
1. Require calculation of base using ordinary recurring expenses.
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