Louisiana

Louisiana amended its statutory code in 1979 to limit revenue to the ratio of Fiscal Year 1978-79 tax revenue to 1977 state personal income. 

CHAPTER 1. GENERAL PROVISIONS

§5001. State Tax Revenue Limit

A State Tax Revenue Limit is established to serve as a check on uncontrolled increases in state tax revenue.

Added by Acts 1979, No. 791,§ 4, eff. July 18, 1979.

The State Tax Revenue Limit is the percentage formed by dividing state tax revenue for the 1978-1979 fiscal year by state personal income for 1977. The State Tax Revenue Limit shall be rounded to the nearest tenth of one percent.

Added by Acts 1979, No. 791,§ 4, eff. July 18, 1979.

State tax revenue is the dollar amount received by the state treasury during the fiscal year from sales and use, income, gift, inheritance, excise, property, license, corporations franchise, and all other taxes, charges and fees. State tax revenue does not include federal funds, royalties, interagency transfers, proceeds from the First Use Tax, severance taxes, or self-generated funds.

Added by Acts 1979, No. 791,§ 4, eff. July 18, 1979.

State personal income is the dollar amount that is reported by the United States Department of Commerce, or its successor agency, as total income by persons in the state of Louisiana for the calendar year in which the fiscal year commences.

Added by Acts 1979, No. 791,§ 4, eff. July 18, 1979.

The maximum state tax revenue for the state of Louisiana for a fiscal year is a dollar amount equal to the state tax revenue limit multiplied by state personal income for the calendar year prior to the calendar year in which the fiscal year commences.

Added by Acts 1979, No. 791,§ 4, eff. July 18, 1979.

The state treasurer, the legislative fiscal officer, and the executive budget officer shall each issue a quarterly estimate of state personal income for the current and upcoming fiscal years based on information supplied by the United States Department of Commerce and other indicators.

Added by Acts 1979, No. 791,§ 4, eff. July 18, 1979.

Upon receipt of the final report from the United States Department of Commerce indicating state personal income for Louisiana for the preceding calendar year, the state treasurer shall announce the maximum state tax revenue for the fiscal year.

Added by Acts 1979, No. 791,§ 4, eff. July 18, 1979.

State tax revenue received by the state treasury in excess of the State Tax Revenue Limit and all interest thereon shall immediately be deposited in the Tax Surplus Fund in the state treasury.

Added by Acts 1979, No. 791,§ 4, eff. July 18, 1979.

The legislature shall make appropriations from the Tax Surplus Fund only for the purpose of making tax refunds.

Added by Acts 1979, No. 791,§ 4, eff. July 18, 1979.

The state treasurer shall promulgate rules to govern the determination of the State Tax Revenue Limit, the declaration of the maximum state tax revenue for the fiscal year, and the administration of the Tax Surplus Fund. The Department of Revenue shall promulgate rules to govern the payment of tax refunds.

Added by Acts 1979, No. 791,§ 4, eff. July 18, 1979; Acts 1997, No. 658,§ 2.

-- THE LOUISIANA CODE

Louisiana has a Constitutional Amendment from 1993 that limits the growth of appropriations to per capita personal income growth.

ARTICLE VII - Revenue and Finance

§10. Expenditure of State Funds

Section 10.(A) Revenue Estimating Conference. The Revenue Estimating Conference shall be composed of four members: the governor, or his designee, the president of the senate, or his designee, the speaker of the house or his designee, and a faculty member of a university or college in Louisiana who has expertise in forecasting revenues. Changes to the membership beyond the four members shall be made by law enacted by a favorable vote of two-thirds of the elected members of each house.

(B) Official Forecast. The conference shall prepare and publish initial and revised estimates of money to be received by the state general fund and dedicated funds for the current and next fiscal years which are available for appropriation. In each estimate, the conference shall designate the money in the estimate which is recurring and which is nonrecurring. All conference decisions to adopt these estimates shall be by unanimous vote of its members. Changes to the unanimous vote requirement shall be made by law enacted by a favorable vote of two-thirds of the elected members of each house. The most recently adopted estimate of money available for appropriation shall be the official forecast.

(C) Expenditure Limit. (1) The legislature shall provide for the determination of an expenditure limit for each fiscal year to be established during the first quarter of the calendar year for the next fiscal year. However, the expenditure limit for the 1991-1992 Fiscal Year shall be the actual appropriations from the state general fund and dedicated funds for that year except funds allocated by Article VII, Section 4, Paragraphs (D) and (E). For subsequent fiscal years, the limit shall not exceed the expenditure limit for the current fiscal year plus an amount equal to that limit times a positive growth factor. The growth factor is the average annual percentage rate of change of personal income for Louisiana as defined and reported by the United States Department of Commerce for the three calendar years prior to the fiscal year for which the limit is calculated.

(2) The expenditure limit may be changed in any fiscal year by a favorable vote of two-thirds of the elected members of each house. Any such change in the expenditure limit shall be approved by passage of a specific legislative instrument which clearly states the intent to change the limit.

(3) Beginning with the 1995-1996 Fiscal Year, the expenditure limit shall be determined in accordance with the provisions of Paragraph (J) of this Section. The redetermination of the expenditure limit for each fiscal year from the 1991-1992 Fiscal Year through the 1994-1995 Fiscal Year shall only be used in computing the expenditure limit for the 1995-1996 Fiscal Year and shall not affect the expenditure limit already computed in accordance with this Paragraph for such fiscal years.

(4) The provisions of this Paragraph shall not apply to or affect funds allocated by Article VII, Section 4, Paragraphs (D) and (E).

(D) Appropriations. (1) Except as otherwise provided by this constitution, money shall be drawn from the state treasury only pursuant to an appropriation made in accordance with law. Appropriations from the state general fund and dedicated funds except funds allocated by Article VII, Section 4, Paragraphs (D) and (E) shall not exceed the expenditure limit for the fiscal year.

(2) Except as otherwise provided in this constitution, the appropriation or allocation of any money designated in the official forecast as nonrecurring shall be made only for the following purposes:

(a) Retiring or for the defeasance of bonds in advance or in addition to the existing amortization requirements of the state.

(b) Providing for payments against the unfunded accrued liability of the public retirement systems which are in addition to any payments required for the annual amortization of the unfunded accrued liability of the public retirement systems, as required by Article X, Section 29(E)(2)(c) of this constitution; however, any such payments to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.

(c) Providing funding for capital outlay projects in the comprehensive state capital budget.

(d) Providing for allocation or appropriation for deposit into the Budget Stabilization Fund established in Article VII, Section 10.3 of this constitution.

(E) Balanced Budget. Appropriations by the legislature from the state general fund and dedicated funds for any fiscal year except funds allocated by Article VII, Section 4, Paragraphs (D) and (E) shall not exceed the official forecast in effect at the time the appropriations are made.

(F) Projected Deficit. The legislature by law shall establish a procedure to determine if appropriations will exceed the official forecast and an adequate method for adjusting appropriations in order to eliminate a projected deficit. If within thirty days of the determination that appropriations will exceed the official forecast the necessary adjustments in appropriations are not made to eliminate the projected deficit, the governor shall call a special session of the legislature for this purpose unless the legislature is in regular session. This special session shall commence as soon as possible as allowed by the provisions of this constitution, including but not limited to Article III, Section 2(B).

(G) Year End Deficit. If a deficit exists in any fund at the end of a fiscal year, that deficit shall be eliminated no later than the end of the next fiscal year.

(H) Publication. The legislature shall have published a regular statement of receipts and expenditures of all state money at intervals of not more than one year.

(I) Public Purpose. No appropriation shall be made except for a public purpose.

(J) Definition of Funds. For the purposes of this Article, the state general fund and dedicated funds shall be all money required to be deposited in the state treasury, except that money the origin of which is:

(1) The federal government.

(2) Self-generated collections by any entity subject to the policy and management authority established by Article VIII, Sections 5 through 7.

(3) A transfer from another state agency, board, or commission.

(4) The provisions of this Paragraph shall not apply to or affect funds allocated by Article VII, Section 4, Paragraphs (D) and (E).

Amended by Acts 1990, No. 1096, §1, approved Oct. 6, 1990, eff. Nov. 8, 1990; Acts 1993, No. 1042, §1, approved, Oct. 16, 1993, eff. Nov. 18, 1993; Acts 1993, No. 1045, §1, approved Oct. 16, 1993, eff. Nov. 18, 1993; Acts 1997, No. 1501, §1, approved Oct. 3, 1998, eff. Nov. 5, 1998.

-- THE CONSTITUTION OF THE STATE OF LOUISIANA

Louisiana has a Constitutional Amendment from 1996 that requires a 2/3 vote of the Legislature to impose a new tax, increase an existing tax, or repeal a tax exemption.

ARTICLE VII - Revenue and Finance

§2. Power to Tax; Limitation

Section 2. The levy of a new tax, an increase in an existing tax, or a repeal of an existing tax exemption shall require the enactment of a law by two-thirds of the elected members of each house of the legislature.

-- THE CONSTITUTION OF THE STATE OF LOUISIANA

Louisiana’s Constitution limits the state’s Governor to two consecutive terms. A person can run for that office again after sitting out one term.


ARTICLE IV.
EXECUTIVE BRANCH
§3. Election; Term
Section 3.(A) Election. Except as provided in Section 20 of this Article, the governor, lieutenant
governor, secretary of state, attorney general, treasurer, commissioner of agriculture, commissioner of.insurance, superintendent of education, and commissioner of elections each shall be elected for a term
of four years by the electors of the state at the time and place of voting for members of the legislature.
The term of each such official shall begin at noon on the second Monday in January next following the
election.
(B) Limitation on Governor. A person who has served as governor for more than one and one-half
terms in two consecutive terms shall not be elected governor for the succeeding term.

-- THE CONSTITUTION OF THE STATE OF LOUISIANA

Louisiana’s Constitution limits the terms of members of the State Legislature to three consecutive two-year terms.


ARTICLE III.
LEGISLATIVE BRANCH
§4. Qualifications; Residence and Domicile Requirements; Term; Election Limitations;
Vacancies
Section 4
(C) Term. A member of the legislature shall be elected for a four-year term.

(E) Election Limitation. No person who has been elected to serve as a member of the Senate for
more than two and one-half terms in three consecutive terms, that service being during a term of office that began on or after January 8, 1996, shall be elected to the Senate for the succeeding term. No person who has been elected to serve as a member of the House of Representatives for more than two and one-half terms in three consecutive terms, that service being during a term of office that began on or after January 8, 1996, shall be elected to the House of Representatives for the succeeding term.
Acts 1995, No. 1326, §1, approved Oct. 21, 1995, eff. Nov. 23, 1995.

-- THE CONSTITUTION OF THE STATE OF LOUISIANA
 

Created by: Jennifer L. Crull

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