§ 39:1367 — State debt; limitations

§1367. State debt; limitations
A. There is hereby established a limitation on the issuance of net state tax supported
debt. The limit shall be established annually by the State Bond Commission as follows:
(1) Beginning for Fiscal Year 1993-1994, net state tax supported debt shall not be
issued if the amount which is to be expended for servicing such outstanding debt exceeds the
percent of the estimate of money to be received by the state general fund and dedicated funds
for each respective fiscal year as contained in the official forecast adopted by the Revenue
Estimating Conference at its first meeting after the beginning of each fiscal year, as set forth
below:
(a) For Fiscal Year 1993-1994, 13.1 percent.
(b) For Fiscal Year 1994-1995, 11.3 percent.
(c) For Fiscal Year 1995-1996, 11.2 percent.
(d) For Fiscal Year 1996-1997, 10.6 percent.
(e) For Fiscal Year 1997-1998, 10.2 percent.
(f) For Fiscal Year 1998-1999, 9.0 percent.
(g) For Fiscal Year 1999-2000, 7.0 percent.
(h) For Fiscal Year 2000-2001, 6.6 percent.
(i) For Fiscal Year 2001-2002, 6.4 percent.
(j) For Fiscal Year 2002-2003, 6.5 percent.
(k) For Fiscal Year 2003-2004 and for each fiscal year thereafter, 6.0 percent.
(2) The limitation established pursuant to this Section shall not be construed to
prevent the payment of debt service on net state tax supported debt.
(3) Only for purposes of this Section, the Revenue Estimating Conference shall
include all amounts which are to be used to service outstanding net state tax supported debt
in its estimate.
B.(1) The limitation established pursuant to this Section may be changed by passage
of a specific legislative instrument by a two-thirds vote of the elected members of each house
of the legislature.
(2) The limitation may be exceeded upon passage of a specific legislative instrument
for a project or related projects by a two-thirds vote of the elected members of each house
of the legislature. Any debt service payment required for bonds issued in connection with
such projects shall not be impaired in future years by application of this limitation. The
limitation established pursuant to this Section shall be deemed to be increased as necessary
to accommodate projects approved to exceed this limit if approved as provided in this
Subsection but only as long as there are bonds outstanding for the projects.
C. The estimate of money to be received by the state general fund and dedicated
funds shall be as provided in the official forecast adopted by the Revenue Estimating
Conference at its first meeting after the beginning of each fiscal year and the projection for
the succeeding three-year period as provided in R.S. 39:172, including all amounts to be used
to pay debt service on net state tax supported debt.
D. Except as provided in Paragraph (B)(2) of this Section, the State Bond
Commission shall not approve the issuance of any net state tax supported debt, the debt
service requirement of which would cause the limit herein established to be exceeded.
E. As used in this Section, the following terms shall have the following meanings
ascribed to them unless the context clearly indicates otherwise:
(1) "Amount expended for servicing outstanding net state tax supported debt" means
all payments of principal, interest, and sinking fund requirements.
(2)(a) "Net state tax supported debt" means all of the following debt obligations
issued by the state or any entity in the state for which the state is legally obligated to make
debt service payments, either directly or indirectly:
(i) General obligation bonds secured by the full faith and credit of the state.
(ii) Debt secured by capital leases of immovable property payable by the state or
annual appropriations of the state.
(iii) Debt secured by statewide tax revenues or statewide special assessments.
(iv) Any funds advanced by a political subdivision in accordance with R.S. 47:820.2.
(v) Bonds secured by self-supported revenues which in the first instance may not be
sufficient to pay debt service and will then draw on the full faith and credit of the state.
(b) "Net state tax supported debt" shall not mean:
(i) Any obligations owed by the state pursuant to the State Employment Security
Law.
(ii) Cash flow borrowings payable from revenue attributable to one fiscal year.
(iii) Any bond or note, including the full principal of and interest on any refunding
bond or note, issued by the state pursuant to Section 4 or 5 of Act No. 41 of the 2006 First
Extraordinary Session of the Legislature.
(iv) Any bond, note, certificate, warrant, reimbursement obligation, or other evidence
of indebtedness issued pursuant to R.S. 23:1532.1.
(v) Any bond, note, or other evidence of indebtedness issued for the purpose of
financing the projects set forth in R.S. 17:3394.3(C) or any bonds issued to refund such
bonds, notes, or evidence of indebtedness.
(vi) Any short term loan not to exceed one year issued by a postsecondary education
management board for the purpose of financing projects as authorized in R.S. 39:128(B)(1).
(vii) Any bond, note, or other evidence of indebtedness issued for the purpose of
financing the projects set forth in R.S. 39:91 or any bonds issued to refund such bonds, notes,
or evidence of indebtedness.
(viii) Any bond, note, or other evidence of indebtedness issued by the Coastal
Protection and Restoration Authority or the Coastal Protection and Restoration Authority
Financing Corporation.
(ix) Any bond, note, or other evidence of indebtedness issued for the purpose of
financing the projects set forth in R.S. 48:77.1 or any bonds issued to refund such bonds,
notes, or evidence of indebtedness.
(x) Any bond, note, certificate, warrant, reimbursement obligation, guarantee, credit
enhancement, pledge, assistance, or other evidence of indebtedness issued pursuant to R.S.
39:462.1 et seq.
(xi) Any bond, note, or other evidence of indebtedness issued pursuant to R.S.
30:83.1 et seq. or any bonds issued to refund such bonds, notes, or evidence of indebtedness.

Legislative History

Acts 1993, No. 813, §1, eff. July 1, 1993; Acts 2002, 1st Ex. Sess., No. 151, §1, eff. April 24, 2002; Acts 2006, 1st Ex. Sess., No. 40, §1, eff. Feb. 23, 2006; Acts 2006, No. 766, §1, eff. June 30, 2006; Acts 2013, No. 360, §2, eff. June 17, 2013; Acts 2014, No. 701, §1; Acts 2019, No. 443, §1, eff. June 25, 2019; Acts 2020, No. 89, §1; Acts 2022, No. 505, §1, eff. June 16, 2022; Acts 2023, No. 424, §1, eff. July 1, 2023; Acts 2025, No. 458, §6, eff. Oct. 1, 2025.