Louisiana lawmakers file bill to cap growth of government
Published 1:49 pm Tuesday, April 22, 2025
- (Special to the American Press)
By Nolan McKendry | The Center Square
The Louisiana Legislature has introduced a bill to limit the growth of the government, an increasingly popular move among states.
In November, the House of Representatives passed an identical bill, but once it arrived to the Senate it was amended significantly, which included various exceptions to the expenditure limit such as funds from the federal government or statutorily dedicated funds.
The one currently before the Legislature removes those exceptions and more.
“What the bill does is it limits the amount of recurring general fund… that can be appropriated for recurring expenses and restricts the use of the revenues above that limit,” Rep. Phillip Tarver, R-Calcasieu, explained. “We’ll create a government growth limit.”
Spending on education has risen. Through the Minimum Foundation Program, spending on education has grown even as student enrollment declines, bringing the state’s spending on education to over $11 billion.
“Louisiana’s budget is highly constrained by a variety of constitutional and statutory requirements that earmark significant portions of state revenue for specific purposes. This limits lawmakers’ discretion in allocating funds to address current priorities or fiscal emergencies,” the Pelican Institute wrote. “Nearly one-quarter of the state’s tax revenues are automatically set aside for specific purposes before lawmakers even begin drafting the budget.”
The growth limit would be calculated using the previous year’s general fund appropriation as a base, multiplied by a growth factor that reflects population changes and inflation — specifically, the Consumer Price Index and medical care inflation. If revenues exceed the cap, they could only be used for non-recurring expenses, such as infrastructure or paying down debt.
“The growth limit cannot exceed the expenditure limit,” Tarver said. “And if the revenues exceed the growth limit, but are under the expenditure limit, the revenues can only be appropriated for non-recurring expenditures.”
The proposal also includes a mechanism for lawmakers to change the growth limit through a two-thirds vote.
The bill advanced out of committee without objection and without any major amendment.
