Help us improve in just 2 minutes—share your thoughts in our reader survey.
Louisiana Amendment 4, Revenue Stabilization Trust Fund Amendment (2023)
| Louisiana Amendment 4 | |
|---|---|
 | |
| Election date November 18, 2023 | |
| Topic State and local government budgets, spending and finance | |
Status Defeated | |
| Type Constitutional amendment | Origin State legislature |
Louisiana Amendment 4, the Revenue Stabilization Trust Fund Amendment, was on the ballot in Louisiana as a legislatively referred constitutional amendment on November 18, 2023. It was defeated.[1]
A "yes" vote supported allowing the state legislature, through a two-thirds supermajority vote, to use up to $250 million of funds in the Revenue Stabilization Trust Fund to alleviate a budget deficit. |
A "no" vote opposed allowing the state legislature, through a two-thirds supermajority vote, to use up to $250 million of funds in the Revenue Stabilization Trust Fund to alleviate a budget deficit. |
Election results
|
Louisiana Amendment 4 |
||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 278,009 | 44.01% | ||
|
|
353,622 | 55.99% | ||
Overview
What is the Revenue Stabilization Trust Fund?
The Louisiana Revenue Stabilization Trust Fund was established through voter approval of a constitutional amendment, Amendment 5, in 2016. The fund was set to receive revenue from mineral and corporate tax revenue. If the state collects corporate tax revenues over $600 million in a year, the remainder must be deposited in the fund. A portion of mineral tax revenue that the state collects above $660 million in a year must also be deposited into the fund. Once the fund reaches $5 billion, 10% of the funds were set to be used for construction and transportation projects.[2]
The first deposit was made to the fund in 2021, in the amount of $205 million since the state received $805 million in corporate income and franchise tax collections, which is over the $600 million trigger amount.[3]
What would this amendment have done?
- See also: Text of measure
This amendment would have removed the state legislature's current authority to appropriate revenue from the fund in an emergency with no cap on withdrawals. The amendment would have allowed the state legislature, after using the maximum allowable funds from the Budget Stabilization Fund (the state's Rainy Day Fund), to use up to $250 million of funds in the Revenue Stabilization Trust Fund to alleviate a budget deficit in a current fiscal year or the next fiscal year if an official forecast projects a deficit. A two-thirds (66.67%) vote of the state legislature would have been required to (1) use Revenue Stabilization Trust Fund money to alleviate a budget deficit, (2) change the minimum fund balance or allowable percentage that can be withdrawn, or (3) change the maximum amount that can be used to alleviate a budget deficit.[1]
Text of measure
Ballot question
The ballot question for the amendment was as follows:[1]
| “ |
Do you support an amendment authorizing the legislature, after securing a two-thirds vote of each house, to use up to two hundred fifty million dollars from the Revenue Stabilization Trust Fund to alleviate a budget deficit subject to conditions set forth by law and allowing the legislature to modify such conditions for accessing the monies in the fund, subject to two-thirds vote? (Amends Article VII, Section 10.15(E)(1) and (F); Adds Article VII, Section 10.15(G)) [4] |
” |
Constitutional changes
- See also: Article VII, Louisiana Constitution
The ballot measure would have amended Article VII of the Louisiana 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.
§10.15. The Revenue Stabilization Trust Fund
(A) The Revenue Stabilization Trust Fund is hereby established in the state treasury as a special trust fund, hereinafter referred to as the "fund".
(B) After allocation of money to the Bond Redemption and Security Fund as provided in Article VII, Section 9(B) of the Constitution of Louisiana, the treasurer shall deposit in and credit to the fund the revenues as provided for in Paragraphs (C) and (D) of this Section.
(C) The treasurer shall deposit into the fund the amount of mineral revenues as provided in Section 10.16 of this constitution.
(D) The treasurer shall deposit into the fund the amount of revenues in excess of six hundred million dollars received each fiscal year from corporate franchise and income taxes as recognized by the Revenue Estimating Conference.
(E)(1) Except as provided for in Paragraph (F) (G) of this Section, monies deposited into the Revenue Stabilization Trust Fund shall be permanently credited to the trust fund and shall be invested by the treasurer in a manner provided for by law.
(F)(1) Except as provided in Subparagraphs (2) and (3) Paragraph (G) of this Paragraph Section, no appropriations shall be made from the Revenue Stabilization Trust Fund.
(2)(a) (G)(1) In any fiscal year in which the balance of the fund at the beginning of the year is in excess of five billion dollars, hereinafter referred to as the minimum fund balance, the legislature may appropriate an amount not to exceed ten percent, in the aggregate, of the fund balance, hereinafter referred to as the allowable percentage, for the following: for capital outlay projects in the comprehensive state capital budget, transportation infrastructure, or both.
:(i) Capital outlay projects in the comprehensive state capital budget.
- (ii) Transportation infrastructure.
- (b) The minimum fund balance or the allowable percentage may be changed by a law enacted by two-thirds of the elected members of each house of the legislature.
(3) In order to ensure the money in the fund is available for appropriation in an emergency the legislature may authorize an appropriation from the fund at any time for any purpose only after the consent of two-thirds of the elected members of each house of the legislature. If the legislature is not in session, the two-thirds requirement may be satisfied upon obtaining the written consent of two-thirds of the elected members of each house of the legislature in a manner provided by law.
(2) In addition to Subparagraph (1) of this Paragraph, monies in the Revenue Stabilization Trust Fund may be used as follows:
- (a) If after the incorporation of the maximum allowable use of monies from the Budget Stabilization Fund into the official forecast for the next fiscal year, the official forecast for the next fiscal year is less than the official forecast money for the current fiscal year, the difference, not to exceed two hundred fifty million dollars, may be incorporated into the next fiscal year's official forecast.
- (b) If after the appropriation of the maximum allowable use of monies from the Budget Stabilization Fund for the current fiscal year, a deficit for the current fiscal year is projected due to a decrease in the official forecast, an amount not to exceed two hundred fifty million dollars may be appropriated.
- (c) The consent of two-thirds of the elected members of each house of the legislature shall be required prior to the utilization of any monies in the fund pursuant to the provisions of this Subparagraph. If the legislature is not in session, the two-thirds requirement may be satisfied upon obtaining the written consent of two-thirds of the elected members of each house of the legislature in a manner provided by law.
(3) Notwithstanding any other provision of this Paragraph, any of the following may be changed by law enacted by two-thirds of the elected members of each house of the legislature:
- (a) The minimum fund balance, the allowable percentage that may be withdrawn, or both, as provided in Subparagraph (1) of this Paragraph.
- (b) The maximum amount that may be withdrawn as provided Subparagraph (2) of this Paragraph.[4]
Fiscal summary
The fiscal summary prepared by the Louisiana Legislative Fiscal Office was as follows:[5]
Present Constitution provides that annual collections from corporate income and franchise taxes above $600 M be deposited to the Revenue Stabilization Trust Fund (RSTF). Further, any mineral revenue collections between $660 M - $950 M (after various allocations of mineral revenue) are to be deposited 70% to the RSTF and 30% to pay the retirement UAL. Once the fund balance reaches $5 B, up to 10% of the balance may be appropriated for capital outlay projects or transportation infrastructure. With a 2/3 vote, an emergency appropriation of any amount may be made from the fund, the minimum fund balance ($5 B), or the allowable percentage (10%) appropriated to capital or transportation projects may be changed. Proposed constitutional amendment retains current law but restricts the emergency use of the RSTF to an annual maximum of $250 M if current year or ensuing year revenue forecasts decline (the same recurring revenue triggers as the Budget Stabilization Fund - BSF) and only after maximum use of the BSF. For use, a 2/3 vote is required and can change the maximum use limit. Subject to voter approval at the statewide election on November 18, 2023. Expenditure explanation: The bill restricts the eligible appropriations from the Revenue Stabilization Trust Fund (RSTF) by repealing the blanket emergency provision that allows use of any amount, up to the entire fund balance, for any reason with a 2/3 vote. In the bill, prior to reaching a $5 B balance, annual use of the RSTF is limited to $250 M (2/3 vote to change) only when a deficit is forecast for taxes, licenses and fees (TLF) for gross recurring revenue within the current year or in the ensuing year (same triggers as Budget Stabilization Fund - BSF). The RSTF may only be utilized if the BSF has also been recognized by REC (ensuing year deficit) or budgeted (current year deficit) and the amount of BSF utilized does not resolve the revenue deficit. For an ensuing year deficit, use of the RSTF is limited to the deficit between the ensuing year to current year forecasts up to $250 M. However, if a current year TLF deficit is forecast, use of the RSTF is not constrained by the size of the deficit but is limited to $250 M. With the bill, the Revenue Stabilization Trust Fund cannot be accessed for anything except capital and/or transportation projects and then only after the maximum balance is reached ($5 B which can be changed with a 2/3 vote). The only exceptional circumstance would be after the Budget Stabilization Fund is utilized due to a current or ensuing year deficit in gross revenue. For instance, if one revenue stream is in peril, such as the fuel tax, but gross revenue is not in a deficit posture, the RSTF cannot be utilized unless the maximum balance is reached. Timing: Presumably, the REC would meet to recognize a deficit, which would set the amount needed (the RSTF balance would also be recognized as is standard in the forecast). A legislative instrument requiring a 2/3 vote of both bodies would authorize maximum use of the BSF and RSTF to resolve the deficit(s) in the current and/or ensuing year(s). In current law, the use of the BSF is limited to 1/3 of the beginning fund balance in each fiscal year, expected to be about $300 M in FY 24 (cannot be changed by vote). Use of RSTF would be limited to a maximum of $250 M per year (may be increased with a 2/3 vote). Revenue explanation: The bill does not change the revenue that will be deposited to the fund. There is no anticipated direct material effect on governmental revenues as a result of this measure. Given the source of deposits to the RSTF, if total revenue is declining while mineral revenue and/or corporate combined taxes are up, as occurred post-Katrina, the RSTF may be utilized and instantly refilled. |
Support
Supporters
Officials
- State Rep. Polly Thomas (R)
Arguments
You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org.
Opposition
Opponents
Arguments
You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org.
Campaign finance
Ballotpedia did not locate political action committees registered to support or oppose the ballot measure.
| Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
|---|---|---|---|---|---|
| Support | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Oppose | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Total | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Background
Louisiana Revenue Stabilization Trust Fund Amendment of 2016
The Louisiana Revenue Stabilization Trust Fund was established through voter approval of a constitutional amendment, Amendment 5, in 2016. The amendment was approved by voters with 54% in favor and 46% opposed. Under the amendment, the fund was created and was set to receive recurring deposits from mineral and corporate tax revenue. Use of the fund was set to be restricted to 10% of the balance when the balance reached $5 billion, with funds to be used for construction and transportation projects and for paying state employee retirement system debt.[6]
The first deposit was made to the fund in 2021, in the amount of $205 million since the state received $805 million in corporate income and franchise tax collections, which is over the $600 million trigger amount.[7]
Louisiana state budget deficit avoidance procedures
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.
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.[8]
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.[8]
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.[9]
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 of funds used from the Budget Stabilization Fund for each fiscal year through February 2020:[10]
| Fiscal year | Balance | Amount used |
|---|---|---|
| 2019-20 | $409,255,106[11] | $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 |
Odd-year ballot measures in Louisiana
A total of 56 constitutional amendments appeared on the statewide ballot in Louisiana during odd-numbered years from 1999 through 2021. Of the 56 amendments, 37 (67.27%) were approved and 19 (34.54%) were defeated.
| Legislatively-referred constitutional amendments, 1999-2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Total number | Approved | Percent approved | Defeated | Percent defeated | Odd-year average | Odd-year median | Odd-year minimum | Odd-year maximum | |
| 56 | 37 | 67.27% | 19 | 34.54% | 5 | 4 | 0 | 16 | |
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 244. It was passed in the House by a vote of 96-0 on May 23, 2023. The Senate passed an amended version of the bill on June 2, 2023, in a vote of 38-0 with one member absent. The House concurred with the Senate's amendments on June 6, 2023, in a vote of 102-0 with three members absent.[1]
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
How to cast a vote
- See also: Voting in Louisiana
See below to learn more about current voter registration rules, identification requirements, and poll times in Louisiana.
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 Louisiana State Legislature, "House Bill 244," accessed April 4, 2023
- ↑ Louisiana Secretary of State, "2016 PROPOSED CONSTITUTIONAL AMENDMENTS November 8, 2016 Election," accessed July 25, 2016
- ↑ AP News, "$205M is first deposit in Louisiana fund aimed at stability," accessed June 26, 2023
- ↑ 4.0 4.1 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 - ↑ Louisiana State Legislature, "Legislative Fiscal Note: HB 244," accessed June 26, 2023
- ↑ Louisiana Secretary of State, "2016 PROPOSED CONSTITUTIONAL AMENDMENTS November 8, 2016 Election," accessed July 25, 2016
- ↑ AP News, "$205M is first deposit in Louisiana fund aimed at stability," accessed June 26, 2023
- ↑ 8.0 8.1 Louisiana State Legislature, "Louisiana Constitution Article VII §10. Expenditure of State Funds," accessed August 21, 2021
- ↑ Public Affairs Research Council of Louisiana, "Proposed Constitutional Amendments by Keyword 1974- 2018," accessed June 9, 2020
- ↑ Louisiana House of Representatives, "Budget Stabilization Fund - Overview," accessed June 9, 2020
- ↑ Balance as of February 11, 2020
- ↑ Louisiana Secretary of State, "FAQ: Voting on Election Day," accessed August 15, 2024
- ↑ Louisiana Secretary of State, "Vote on Election Day," accessed August 15, 2024
- ↑ 14.0 14.1 14.2 Louisiana Secretary of State, "Register to Vote," accessed August 15, 2024
- ↑ WWNO, "Louisiana now requires proof of citizenship to vote, but hasn’t issued any guidance," January 15, 2025
- ↑ Louisiana Secretary of State, "Louisiana Voter Registration Application," accessed June 30, 2025
- ↑ 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."
- ↑ 18.0 18.1 Louisiana Secretary of State, "Vote on Election Day," accessed August 15, 2024
- ↑ Louisiana Secretary of State, "Louisiana voters' bill of rights and voting information," accessed August 15, 2024
 |
State of Louisiana Baton Rouge (capital) |
|---|---|
| Elections |
What's on my ballot? | Elections in 2025 | How to vote | How to run for office | Ballot measures |
| Government |
Who represents me? | U.S. President | U.S. Congress | Federal courts | State executives | State legislature | State and local courts | Counties | Cities | School districts | Public policy |
