Louisiana’s budget should reflect our shared priorities. It determines how much we invest in our public schools, hospitals, infrastructure and other services that help families and communities thrive.
A package of bills pending in the Legislature would make it harder to sustain and build on these investments by locking today’s spending levels into the state constitution. That’s why lawmakers should reject House Bill 824 and its constitutional companion, House Bill 646.
Together, these bills would impose a new and unnecessary “government growth limit” that would tie the hands of future legislatures and make it harder to respond to Louisiana’s changing needs—even when the state has the money to do so.
A new cap on future investments
HB 646 and HB 824 would create a stricter formula that limits annual spending growth based on:
- Population growth
- Inflation
- Medical inflation
If tax revenues grow faster than this formula allows, the excess would be diverted into the “Louisiana Income Tax Elimination Fund”. It would be used to pay for tax breaks instead of being available for recurring needs, such as early childhood education, teacher pay raises, Medicaid or workforce training programs.
The state could have the resources to make needed investments, but lawmakers would be constitutionally barred from using them.
Why this matters
A government growth limit assumes that today’s level of public investment is sufficient.
In Louisiana, that is clearly not the case.
The Pelican State continues to rank near the bottom nationally on many measures of health, education and economic well-being. Future generations of legislators should have the freedom to make larger investments when revenues allow and the needs are clear.
Louisiana already has a spending limit
Louisiana cannot spend more money than it collects. The state constitution requires a balanced budget, and it already includes a spending cap that is based on personal income growth. That cap has worked well over the years. Unlike the proposed growth limit, the current system gives lawmakers flexibility to adjust spending when circumstances change.
Lawmakers already have the power to spend less money on programs and services than what’s available. All it takes is a majority vote in the House and Senate.
Colorado’s experience offers a warning
Colorado adopted a nearly identical spending cap in 1992 through the Taxpayer Bill of Rights (TABOR).
The formula failed to keep pace with the true cost of education, health care and services for children and seniors. Over time, it made it increasingly difficult for the state to address emerging priorities and maintain core services.
Louisiana’s proposal closely mirrors Colorado’s failed experiment.
Voters already rejected this idea
Louisiana voters had the chance to weigh in on a similar proposal in March 2025, when they overwhelmingly rejected Amendment 2, which also included a broader rewrite of Article VII of the state constitution.
This year’s legislation revives the same concept under a different name.
The bottom line
Louisiana’s constitution should not lock in today’s spending levels and prevent future leaders from making investments that strengthen our state.
When revenues are available, lawmakers should have the option of investing in better schools, stronger health care systems and greater economic opportunity—not be constrained by an arbitrary formula.
Louisiana voters rejected this idea once. The Legislature should do the same.