A car allowance is included in the total compensation of the official. Therefore, care must be taken if the law (statute, charter provision, or local ordinance) provides a maximum compensation for the official, and the official is already receiving this maximum amount. Absent specific authority in law allowing for a separate car allowance, any additional compensation, including a car allowance, would cause the official to exceed their statutorily limited total compensation. If the official’s salary is not currently at their statutory maximum, any additional car allowance must be limited in an amount that shall ensure that the official does not exceed their statutorily restricted total compensation.

In the absence of any statutory limit on maximum compensation, the main guiding principle for any expenditures of public funds, including car allowances, is Article VII, §14 of the Louisiana Constitution. Under this constitutional provision, the following are a good rule of thumb in considering car allowances:

· The car allowance must be reasonable in amount;

· The allowance must be included on a W-2;

· The official cannot get a car allowance and mileage reimbursement; and

· The official cannot receive a car allowance and simultaneously be using a public vehicle.

For Lawrason Act municipalities, the compensation of public officers and elected officials of the municipality is required to be set by ordinance. R.S. 33:404.1. Therefore, an ordinance amending the current compensation of the municipal officer or official must be adopted in order to provide for a car allowance.