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Appropriations panel backs constitutional cap on recurring general‑fund spending and creates ‘Income Tax Elimination Fund’
Summary
The House Appropriations Committee reported favorable two companion measures that set a growth limit on recurring State General Fund appropriations and establish a fund to hold recurring revenue above that cap for future income‑tax reductions.
The House Appropriations Committee on Wednesday reported favorable, as amended, a constitutional amendment and a companion statute that together would limit recurring State General Fund appropriations and create a mechanism to set aside recurring revenue for future income‑tax reductions.
Chairman Beaulieu, the bill sponsor, told the committee the constitutional amendment (House Bill 6 46) focuses on recurring expenses in the general fund and aims to “set some structure for future legislators and future administrations” so government lives “within the same means.” Miss Little walked members through amendment set 4,225, which includes a new Louisiana Income Tax Elimination Fund to receive recurring general‑fund monies above the newly set limit when receipts remain below the official forecast. “What it does … is create the Louisiana Income Tax Elimination Fund,” Miss Little said, summarizing the fund’s deposit rules and permitted uses.
Representative Bogart, presenting the statutory companion (House Bill 8 24), described how the growth limit would be calculated: the average change in the consumer price index and medical CPI averaged together, plus population change. “That is where we were a really straightforward growth limit here,” he said. An amendment to clarify when the limit resets if the legislature changes it was adopted.
Committee members asked procedural and policy questions but raised no sustained objections; the chair announced both measures would be reported favorable as amended. The committee did not record a roll‑call vote on either measure in the transcript; the actions were processed by unanimous consent.
If enacted by voters (the constitutional measure) and implemented in statute, supporters say the approach would constrain future recurring spending and provide a vehicle to reduce income‑tax rates over time. Opponents at the hearing did not mount formal opposition in the committee record; the bills move next according to the legislative process.
