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HB 295

APPROPRIATIONS: (Constitutional Amendment) Limits the amount of State General Fund (Direct) revenues that may be appropriated in a fiscal year for recurring expenses and restricts use of such revenues above that limit (EG SEE FISC NOTE GF EX)

2025 Regular Session Introduced by Phil Tarver

Constitutional amendment caps Louisiana's annual recurring General Fund appropriations and restricts excess revenues to non-recurring uses, constraining state budget flexibility.

Read second time by title and referred to the Committee on Finance.
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Bill Summary · HB 295

Legislative bill overview

HB 295 proposes a constitutional amendment that would cap the amount of Louisiana's State General Fund revenues that can be appropriated annually for recurring expenses. Any revenues exceeding this limit would be restricted in how they can be used, likely requiring them to be directed toward specific purposes like savings accounts, debt reduction, or one-time expenditures rather than ongoing programs.

Why is this important

This amendment would fundamentally constrain the state legislature's budgeting flexibility by creating a structural spending limit. It directly affects how much funding can support ongoing services like education, healthcare, and infrastructure maintenance, potentially forcing difficult choices about which programs receive stable, recurring appropriations versus which rely on temporary funding sources.

Potential points of contention

  • Definition of "recurring expenses": Disputes could arise over whether certain expenditures qualify as recurring, affecting whether they fall within or outside the cap
  • Economic inflexibility: During revenue downturns, the cap could prevent adequate funding for essential services, while surpluses might accumulate unused rather than addressing pressing needs
  • Constitutional amendment precedent: Locking spending limits into the constitution makes future adjustments difficult, even if circumstances change significantly
  • Impact on program stability: Schools, universities, and social services relying on recurring appropriations could face budget uncertainty if revenues fluctuate unpredictably

Compiled from official sources — confirm details with the bill’s official record.

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