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Louisiana Amendment 4, Increase Limit on Funding Reductions and Redirections During Budget Deficits Measure (2021)

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Louisiana Amendment 4
Flag of Louisiana.png
Election date
November 13, 2021
Topic
State and local government budgets, spending and finance
Status
Defeatedd Defeated
Type
Constitutional amendment
Origin
State legislature

2021 measures
November 13
Louisiana Amendment 1 Defeated
Louisiana Amendment 2 Approved
Louisiana Amendment 3 Defeated
Louisiana Amendment 4 Defeated
Polls
Voter guides
Campaign finance
Signature costs

Louisiana Amendment 4, the Increase Limit on Funding Reductions and Redirections During Budget Deficits Measure, was on the ballot in Louisiana as a legislatively referred constitutional amendment on November 13, 2021. It was defeated.[1]

A "yes" vote supported increasing the amount of funds (from 5% to 10%) that can be redirected to a purpose other than what was originally provided for by law or as stated in the constitution during a projected budget deficit.

A "no" vote opposed increasing the amount of funds that can be redirected to a purpose other than what was originally provided for by law or as stated in the constitution during a projected budget deficit, thereby maintaining the current limit of funding reductions to 5% of the total appropriation


Election results

Louisiana Amendment 4

Result Votes Percentage
Yes 112,927 27.73%

Defeated No

294,370 72.27%
Results are officially certified.
Source


Overview

What would Amendment 4 have changed about state budget deficit avoidance procedures?

See also: Ballot language and constitutional changes and Background

According to the state constitution, appropriations from the state general fund and other dedicated funds may not exceed the fiscal year's official forecast containing estimated state revenues and expenditures that is prepared by the Revenue Estimating Conference. The state legislature may provide by law a process for adjusting appropriations if a budget deficit is forecasted. Under state law, the governor may unilaterally reduce state general fund allocations or appropriations by a total of seven-tenths of one percent (0.007%) for the fiscal year.

If a deficit still exists, the governor can take further action with a majority vote of the Joint Legislative Committee on the Budget (JLCB) to eliminate the deficit. One of the things the governor and the JLCB can do is reduce constitutionally protected or mandated allocations and appropriations. When preparing for a budget deficit in the next fiscal year, if revenues are projected to be at least 1% less than the current fiscal year, appropriations or allocations from any fund established by state law or mandated by the state constitution may be dedicated to a purpose other than what was originally provided for by law or in the constitution. As of 2021, reductions to such appropriations may not exceed 5% of the total appropriation. This measure would have amended the constitution to increase the allowable reduction to 10% of the total appropriation.[1]

Within 30 days after it is projected that appropriations exceed the official budget forecast, the governor shall call a special session of the Louisiana State Legislature if it is not in session at the time to balance the budget.[2]

What funds are exempt from reductions or redirections during a budget deficit?

See also: Louisiana state budget deficit avoidance procedures

The amendment would not have affected the current constitutional mandate requiring that any reductions to or redirections from public school funding not exceed 1% of the total appropriation, and such reductions may not be made to instructional activities. Additionally, certain funds and allocations are exempt from appropriation reductions or redirections during a budget deficit, including:[1]

  • the Bond Security and Redemption Fund;
  • the natural resources Severance Tax Allocation;
  • the Royalties Allocation from mineral leases on state-owned land, lake and river beds and other bottoms of water;
  • allocations made for the state's public retirement program;
  • the Louisiana Education Quality Trust Fund;
  • the Medicaid Trust Fund for the Elderly;
  • the Revenue Stabilization Trust Fund;
  • the Louisiana Unclaimed Property Permanent Trust Fund;
  • grants or donations or other forms of assistance received by the state;
  • money received by professional or trade associations;
  • money received by the employment security administration fund or by retirement system funds;
  • money received by state agencies, boards, or commissions from fees or charges related to international maritime commerce; and
  • money received by state agencies, boards, or commissions pledged by the issuance of revenue bonds.

How did this measure get on the ballot?

See also: Path to the ballot

In Louisiana, a two-thirds vote is needed in each chamber of the Louisiana State Legislature to refer a legislatively referred constitutional amendment to the ballot for voter consideration.

This amendment was introduced as House Bill 487 (HB 487) on April 2, 2021. On May 24, 2021, the state House passed HB 487 in a vote of 91-0. The Senate passed an amended version of the bill on June 7, 2021, in a vote of 36-1. The House concurred with the Senate's amendments on June 8, 2021, in a vote of 94-0.[1]

Text of measure

Ballot question

The ballot question for the amendment was as follows:[1]

Do you support an amendment to increase the amount of allowable deficit reductions to statutory dedications and constitutionally protected funds from five percent to ten percent? (Amends Article VII, Section 10(F)(2)(a) and (b))[3]

Ballot summary

The ballot summary was as follows:[4]

Present Constitution provides that the legislature by law shall establish a procedure to determine if appropriations will exceed the official forecast and an adequate method for adjusting appropriations to eliminate a projected deficit.

Present Constitution provides that adjustments are authorized when state general fund allocations or appropriations have been reduced in an aggregate amount equal to at least seven-tenths of one percent of the total of such allocations and appropriations for a fiscal year and such adjustments may not exceed five percent of the total appropriation or allocation from a fund for the fiscal year.

Proposed Constitutional Amendment provides that adjustments are authorized when state general fund allocations or appropriations have been reduced in an aggregate amount equal to at least seven-tenths of one percent of the total of such allocations and appropriations for a fiscal year and such adjustments shall not exceed ten percent of the total appropriation or allocation from a fund for the fiscal year.

Present Constitution provides that for the purposes of the budget estimate and enactment of the budget for the next fiscal year, when the official forecast of recurring revenues for the next fiscal year is at least one percent less than the official forecast for the current fiscal year, an amount not to exceed five percent of the total appropriations or allocations for the current fiscal year from any fund established by law or this Constitution shall be available for expenditure required by this Constitution in the next fiscal year for a purpose other than as specifically provided by law or this Constitution.

Proposed Constitutional Amendment provides that for the purposes of the budget estimate and enactment of the budget for the next fiscal year, when the official forecast of recurring revenues for the next fiscal year is at least one percent less than the official forecast for the current fiscal year, an amount not to exceed ten percent of the total appropriations or allocations for the current fiscal year from any fund established by law or this Constitution shall be available for expenditure required by this Constitution in the next fiscal year for a purpose other than as specifically provided by law or this Constitution.[3]

Constitutional changes

See also: Article VII, Louisiana Constitution

The measure would have amended Subsection F (2)(a) and (b) ofSection 10 of Article VII of the state constitution. The following underlined text would have been added, and struck-through text would have been deleted:[1] Note: Hover over the text and scroll to see the full text.

(2)(a) Notwithstanding any other provision of this constitution to the contrary, adjustments to any constitutionally protected or mandated allocations or appropriations, and transfer of monies associated with such adjustments, are authorized when state general fund allocations or appropriations have been reduced in an aggregate amount equal to at least seven-tenths of one percent of the total of such allocations and appropriations for a fiscal year. Such adjustments may shall not exceed five ten percent of the total appropriation or allocation from a fund for the fiscal year. For purposes of this Subsubparagraph, reductions to expenditures required by Article VIII, Section 13(B) of this constitution shall not exceed one percent and such reductions shall not be applicable to instructional activities included within the meaning of instruction pursuant to the Minimum Foundation Program formula. Notwithstanding any other provisions of this constitution to the contrary, monies transferred as a result of such budget adjustments are deemed available for appropriation and expenditure in the year of the transfer from one fund to another, but in no event shall the aggregate amount of any transfers exceed the amount of the deficit.

(b) Notwithstanding any other provision of this constitution to the contrary, for the purposes of the budget estimate and enactment of the budget for the next fiscal year, when the official forecast of recurring revenues for the next fiscal year is at least one percent less than the official forecast for the current fiscal year, the following procedure may be employed to avoid a budget deficit in the next fiscal year. An amount not to exceed five ten percent of the total appropriations or allocations for the current fiscal year from any fund established by law or this constitution shall be available for expenditure in the next fiscal year for a purpose other than as specifically provided by law or this constitution. For the purposes of this Subsubparagraph, an amount not to exceed one percent of the current fiscal year appropriation for expenditures required by Article VIII, Section 13(B) of this constitution shall be available for expenditures for other purposes in the next fiscal year. Notwithstanding any other provisions of this constitution to the contrary, monies made available as authorized under this Subsubparagraph may be transferred to a fund for which revenues have been forecast to be less than the revenues in the current fiscal year for such fund. Monies transferred as a result of the budget actions authorized by this Subsubparagraph are deemed available for appropriation and expenditure, but in no event shall the aggregate amount of any such transfers exceed the amount of the difference between the official forecast for the current fiscal year and the next fiscal year.[3]

Readability score

See also: Ballot measure readability scores, 2021
Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure.


The FKGL for the ballot title is grade level 13, and the FRE is 25. The word count for the ballot title is 34, and the estimated reading time is 16 seconds. The FKGL for the ballot summary is grade level 10, and the FRE is 45. The word count for the ballot summary is 365, and the estimated reading time is 1 minute and 37 seconds.


Support

Supporters

Officials

Organizations

  • One Acadiana

Opposition

If you are aware of any opponents or opposing arguments, please send an email with a link to editor@ballotpedia.org.

Media editorials

See also: 2021 ballot measure media endorsements

Ballotpedia lists the positions of media editorial boards that support or oppose ballot measures. This does not include opinion pieces from individuals or groups that do not represent the official position of a newspaper or media outlet. Ballotpedia includes editorials from newspapers and outlets based on circulation and readership, political coverage within a state, and length of publication. You can share media editorial board endorsements with us at editor@ballotpedia.org.

Support

  • The Advocate Editorial Board: "Given Louisiana’s history of revenues fluctuating wildly from year to year — part of what Amendment 2 seeks to remedy — this amendment allows for reasonable adjustments in cases of threatened deficits."


Opposition

You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org.


Background

Louisiana state budget

The official forecast for the current and next fiscal years containing estimated state revenues and expenditures is prepared by the Revenue Estimating Conference. The conference is composed of four members: (1) the governor or their designee, (2) the president of the Senate or their designee, (3) the speaker of the house or their designee, and (4) a faculty member of a university or college in Louisiana who has expertise in forecasting revenues. Appropriations may not exceed the state's expenditure limit.

Expenditure limit

As of October 2020, 13 states had imposed spending and revenue limits on state budgets, eight states had only imposed revenue limits, 12 states had only imposed spending limits, and 17 states and Washington D.C. had imposed no limits. Louisiana enacted an expenditure limit in 1993 with the approval of Amendment 3. It amended the Louisiana Constitution to require that an expenditure limit be established for the next fiscal year during the first quarter of the calendar year of the present fiscal year. The expenditure limit for the next fiscal year was set to equal the present expenditure limit multiplied by the annual percentage rate of change of personal income from the three prior calendar years. Revenue in excess of the limit was deposited into a reserve fund.[5][6]

In 1995, the state legislature exempted the following types of appropriations from the expenditure limit:[5]

  • federal funds,
  • transfers from another state's agencies,
  • severance taxes and royalties, and
  • programs funded by the motor vehicle license tax.

The following chart includes the state expenditure limit and appropriations enacted by the legislature for fiscal years 2011-2021:[7]

Louisiana state budget deficit avoidance procedures

According to the state constitution, appropriations from the state general fund and other dedicated funds may not exceed the official forecast. The state legislature may provide by law a process for adjusting appropriations if a budget deficit is forecasted. Under state law, the governor may unilaterally reduce state general fund allocations or appropriations by a total of seven-tenths of one percent (0.007%) for the fiscal year. If a deficit still exists, the governor can take further action with a majority vote of the Joint Legislative Committee on the Budget (JLCB) to eliminate the deficit. One of the things the governor and the JLCB can do is reduce constitutionally protected or mandated allocations and appropriations. When preparing for a budget deficit in the next fiscal year, if revenues are projected to be at least 1% less than the current fiscal year, appropriations or allocations from any fund established by state law or mandated by the state constitution may be dedicated to a purpose other than what was originally provided for by law or in the constitution Under present law, reductions to such appropriations may not exceed 5% of the total appropriation.[2]

Within 30 days after it is projected that appropriations exceed the official budget forecast, the governor shall call a special session of the Louisiana State Legislature if it is not in session at the time to balance the budget.[2]

Under present law, any reductions to or redirections from public school funding may not exceed 1% of the total appropriation, and such reductions may not be made to instructional activities. Additionally, certain funds and allocations are exempt from appropriation reductions or redirections during a budget deficit, including:[1]

  • the Bond Security and Redemption Fund;
  • the natural resources Severance Tax Allocation;
  • the Royalties Allocation from mineral leases on state-owned land, lake and river beds and other bottoms of water;
  • allocations made for the state's public retirement program;
  • the Louisiana Education Quality Trust Fund;
  • the Medicaid Trust Fund for the Elderly;
  • the Revenue Stabilization Trust Fund;
  • the Louisiana Unclaimed Property Permanent Trust Fund;
  • grants or donations or other forms of assistance received by the state;
  • money received by professional or trade associations;
  • money received by the employment security administration fund or by retirement system funds;
  • money received by state agencies, boards, or commissions from fees or charges related to international maritime commerce; and
  • money received by state agencies, boards, or commissions pledged by the issuance of revenue bonds.

Budget Stabilization Fund (Rainy Day Fund)

In 1990, Louisiana voters approved Amendment 2, which added section 10.3 of Article VII to the Louisiana Constitution to create the Budget Stabilization Fund. The fund receives revenue from the state's general and dedicated funds if it exceeds the expenditure limit, revenue in excess of $750 million from the production of minerals in the state, 25 percent of any money designated in the official forecast as nonrecurring, and any money appropriated to the fund by the state legislature.[8]

Under section 10.3 of Article VII of the Louisiana Constitution, the state legislature, through a two-thirds supermajority vote, may appropriate funds from the Budget Stabilization Fund when the official forecast of recurring funds for the next fiscal year is less than the official forecast of recurring funds for the current fiscal year. The legislature can appropriate no more than one-third of the fund to make up the difference between the years.

When a deficit is projected for the current fiscal year, two-thirds of the legislature may consent to appropriate no more than one-third of the fund to make up for the projected deficit.

The official forecast amount for the next fiscal year plus the amount appropriated in the current fiscal year cannot exceed one-third of the fund balance at the beginning of the current fiscal year. The amount in the fund cannot exceed 4 percent of total state revenue receipts for the previous fiscal year.

Amendment 3, approved by voters in 2020, allowed the Louisiana State Legislature, through a two-thirds vote in each chamber, to use up to one-third of the revenue in the Budget Stabilization Fund (also known as the Rainy Day Fund) to cover the state's costs associated with a federally-declared disaster. Federal deposits into the fund for the declared disaster cannot exceed the amount appropriated by the state for the same disaster.

The following table shows the balance and amount used of the Budget Stabilization Fund for each fiscal year through February 2020:[9]

Fiscal year Balance Amount used
2019-20 $409,255,106[10] $0
2018-19 $405,283,104 $0
2017-18 $321,070,308 $0
2016-17 $286,793,436 $99,000,000
2015-16 $358,982,172 $156,624,005
2014-15 $469,872,015 $0
2013-14 $444,505,134 $0
2012-13 $443,868,563 $0
2011-12 $442,933,620 $204,700,000
2010-11 $646,129,954 $0
2009-10 $643,857,588 $284,573,102
2008-09 $853,719,306 $0
2007-08 $775,593,291 $0
2006-07 $682,714,462 $0
2005-06 $681,908,535 $153,887,168
2004-05 $461,661,504 $0
2003-04 $239,343,931 $0
2002-03 $191,140,116 $86,387,000
2001-02 $266,173,483 $0
2000-01 $196,700,380 $0

Referred amendments in Louisiana during odd years

A total of 52 constitutional amendments appeared on the statewide ballot in Louisiana during odd-numbered years during the 20-year period from 1999 through 2019. Of the 52 amendments, 36 (69.23%) were approved and 16 (30.77%) were defeated.

Legislatively-referred constitutional amendments, 1999-2019
Total number Approved Percent approved Defeated Percent defeated Odd-year average Odd-year median Odd-year minimum Odd-year maximum
52 36 69.23% 16 30.77% 5 4 0 16


Campaign finance

See also: Campaign finance requirements for Louisiana ballot measures
Total campaign contributions:
Support: $0.00
Opposition: $0.00

If you are aware of a committee registered to support or oppose this measure, please email editor@ballotpedia.org.

Path to the ballot

See also: Amending the Louisiana Constitution

In Louisiana, a two-thirds vote is needed in each chamber of the Louisiana State Legislature to refer a legislatively referred constitutional amendment to the ballot for voter consideration.

This amendment was introduced as House Bill 487 (HB 487) on April 2, 2021. On May 24, 2021, the state House passed HB 487 in a vote of 91-0. The Senate passed an amended version of the bill on June 7, 2021, in a vote of 36-1. The House concurred with the Senate's amendments on June 8, 2021, in a vote of 94-0.[1]

Vote in the Louisiana State Senate
June 7, 2021
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 26  Approveda
YesNoNot voting
Total3611
Total percent94.74%2.63%2.63%
Democrat1010
Republican2601

Vote in the Louisiana House of Representatives
June 8, 2021
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 70  Approveda
YesNoNot voting
Total94011
Total percent89.52%0.00%10.48%
Democrat3302
Republican5909
Independent200

How to cast a vote

See also: Voting in Louisiana

Click "Show" to learn more about voter registration, identification requirements, and poll times in Louisiana.

See also

External links

Footnotes

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Louisiana State Legislature, "House Bill 487," accessed May 25, 2021
  2. 2.0 2.1 2.2 Louisiana State Legislature, "Louisiana Constitution Article VII §10. Expenditure of State Funds," accessed August 21, 2021
  3. 3.0 3.1 3.2 3.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content
  4. Louisiana Secretary of State, "STATEMENT OF PROPOSED CONSTITUTIONAL AMENDMENTS 2021," accessed August 30, 2021
  5. 5.0 5.1 American Enterprise Institute, "State tax expenditure limitation and supermajority requirement: New and updated data," September 2017
  6. Urban-Brookings Tax Policy Center, "The State of State (and Local) Tax Policy," accessed June 11, 2020
  7. Division of Administration, "State Budgets," accessed August 21, 2021
  8. Public Affairs Research Council of Louisiana, "Proposed Constitutional Amendments by Keyword 1974- 2018," accessed June 9, 2020
  9. Louisiana House of Representatives, "Budget Stabilization Fund - Overview," accessed June 9, 2020
  10. Balance as of February 11, 2020
  11. Louisiana Secretary of State, "FAQ: Voting on Election Day," accessed November 12, 2025
  12. Louisiana Secretary of State, "Vote on Election Day," accessed November 12, 2025
  13. 13.0 13.1 13.2 13.3 Louisiana Secretary of State, "Register to Vote," accessed November 12, 2025
  14. NCSL, "Automatic Voter Registration," accessed November 12, 2025
  15. NCSL, "Same-Day Voter Registration," accessed November 12, 2025
  16. Louisiana State Legislature, "La. Rev. Stat. Ann. § 18:104," accessed March 16, 2026
  17. Louisiana Secretary of State, "Louisiana Voter Registration Application," accessed January 27, 2026
  18. United States District Court For The Middle District of Louisiana, "DEFENDANTS’ MEMORANDUM OF LAW IN SUPPORT OF THEIR MOTION TO DISMISS PLAINTIFFS’ AMENDED COMPLAINT," December 23, 2025
  19. Under federal law, the national mail voter registration application (a version of which is in use in all states with voter registration systems) requires applicants to indicate that they are U.S. citizens in order to complete an application to vote in state or federal elections, but does not require voters to provide documentary proof of citizenship. According to the U.S. Department of Justice, the application "may require only the minimum amount of information necessary to prevent duplicate voter registrations and permit State officials both to determine the eligibility of the applicant to vote and to administer the voting process."
  20. Florida's law takes effect on January 1, 2027
  21. 21.0 21.1 Louisiana Secretary of State, "Vote on Election Day," accessed November 12, 2025