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HB 824

APPROPRIATIONS: Limits the amount of state general fund that may be appropriated in a fiscal year (RE SEE FISC NOTE GF EX See Note)

2026 Regular Session Introduced by Beau Beaullieu

Establishes an annual growth limit on recurring General Fund direct spending and directs any revenue above the limit but below the expenditure limit to nonrecurring uses.

Read second time by title and referred to the Committee on Finance.
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Bill Summary · HB 824

Summary of HB 824 (2026) — Louisiana Appropriations: Government Growth Limit

This bill establishes a formal, annual calculation of a Government Growth Limit (growth limit) for recurring General Fund (Direct) revenues and restricts how much can be appropriated in a given fiscal year. It adds definitions, procedural steps, and specific exceptions, and it ties the limit to the state budget process and constitutional amendment that would be required for implementation.

1) Purpose and Intent

  • Create a measurable cap on the growth of recurring state General Fund (Direct) appropriations.
  • Require the calculation and adoption of a growth limit each year, guiding executive budget recommendations and legislative appropriations.
  • Channel any recurring revenues recognized above the growth limit (but below the expenditure limit) to nonrecurring uses, unless within allowed exceptions.

2) Key Provisions and Changes

A. Growth Limit Calculation (new R.S. 39:33.3)

  • The Growth Limit is to be set by the Revenue Estimating Conference (REC) no later than the first quarter of each calendar year for the next fiscal year.
  • The commissioner of administration must calculate the upcoming year’s growth limit and submit it to the REC for consideration and adoption.
  • The REC, after consideration, must adopt a growth limit for the ensuing fiscal year and transmit it to the Joint Legislative Committee on the Budget (JLCB) by the executive budget submission deadline.

B. Growth Factor and Base (for positive growth scenarios)

  • If the growth factor is positive, the growth limit is:
    • Base: total recurring General Fund (Direct) appropriations for the immediately prior fiscal year, excluding certain specified appropriations.
    • Growth limit = Base + (Base × Growth Factor).
  • Growth Factor is the sum of:
    1. Louisiana population growth rate (5-year average, per U.S. Commerce).
    2. The average of:
      • 5-year average annual percent change in the U.S. chained CPI (inflation).
      • 5-year average annual percent change in the U.S. chained medical care CPI.
  • If the growth factor is negative, the growth limit equals the Base.

C. Nonrecurring Use of Forecast Above Growth Limit

  • Any recurring revenue amounts recognized above the growth limit but below the expenditure limit may be appropriated only for nonrecurring expenses.
  • Nonrecurring expense: an expense not continuing/recurring and not expected to be necessary in roughly the same amount each year.

D. Exceptions to the Growth Limit

The limit does not apply to:
1. Funds from the Budget Stabilization Fund incorporated into the current fiscal year forecast.
2. Funds from financing substitutions that increase the General Fund (Direct) to replace decreases in federal funding, transfers, self-generated revenues, or statutorily/dedicated funds.
3. Funds appropriated or allocated that are excluded from the expenditure-limit analysis.

E. Interaction with Expenditure Limit and Executive Budget

  • Present law requires executive budget recommendations for appropriations not to exceed the expenditure limit.
  • The bill retains that but adds that executive recommendations for recurring revenue must not exceed the growth limit.
  • Any governor’s proposals to exceed either the expenditure limit or the growth limit (or both) must be submitted as a separate gubernatorial proposal, distinct from the executive budget.

F. Effective Condition

  • The act takes effect only if a separate constitutional amendment (to Article VII) proposed in the 2026 Regular Session is adopted by statewide vote and becomes effective.

3) Who and What Is Affected

  • State agencies and programs: appropriations from the State General Fund (Direct) are subject to the growth limit and its calculation.
  • Governor, Commissioner of Administration, Revenue Estimating Conference, and Joint Legislative Committee on the Budget: roles defined for calculation, adoption, and reporting of the growth limit.
  • Budget processes: executive budget recommendations and legislative appropriations must align with the growth limit, expenditure limit, and specified exceptions.
  • Recurring vs. nonrecurring expenditures: the bill creates a framework to treat forecasted recurring revenues above the growth limit as nonrecurring unless exempted.

4) Procedural and Timeline Aspects

  • Annual cycle:
    • Commissioner of Administration calculates next year’s growth limit.
    • REC considers and adopts the growth limit.
    • Chairman of REC submits the adopted limit to the JLCB by the executive budget submission deadline.
  • If growth factor is negative: growth limit equals the prior year’s base.
  • Special effective date: depends on the statewide adoption of the related constitutional amendment.

5) Practical Implications

  • Potentially constrains new recurring spending unless offset by adjusting the base, leveraging exceptions, or ensuring growth factors produce a permissible limit.
  • Encourages the use of nonrecurring funding for revenues above the limit.
  • Adds formalized, recurring budget discipline to Louisiana’s fiscal planning.

Note: The bill also includes technical amendments to R.S. 39:34, 38, and 54 to reflect the growth limit framework.

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

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