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Louisiana Amendment 3, State Retirement System Funding Amendment (October 2023)
| Louisiana Amendment 3 | |
|---|---|
 | |
| Election date October 14, 2023 | |
| Topic State and local government budgets, spending and finance and Pension | |
Status Approved | |
| Type Constitutional amendment | Origin State legislature |
Louisiana Amendment 3, the State Retirement System Funding Amendment, was on the ballot in Louisiana as a legislatively referred constitutional amendment on October 14, 2023.[1] The ballot measure was approved.
A "yes" vote supported requiring a minimum of 25% of state revenue that is designated as nonrecurring to be applied to the balance of the unfunded liability of the state retirement system. |
A "no" vote opposed requiring a minimum of 25% of state revenue that is designated as nonrecurring to be applied to the balance of the unfunded liability of the state retirement system. |
Election results
|
Louisiana Amendment 3 |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
|
|
559,540 | 56.16% | ||
| No | 436,717 | 43.84% | ||
Overview
What did Amendment 3 do?
- See also: Text of measure
The amendment required a minimum of 25% of nonrecurring state revenue to be appropriated to the unfunded accrued liability (UAL) of state retirement systems beginning in fiscal year 2024-2025. The allocated funds are required to be used by each retirement system to pay off the oldest debts first. The amendment authorized the state legislature to provide for in state law for determining how to distribute the one-time funds among the retirement systems that have debts. If the state legislature does not create a law outlining the distribution requirements, the amendment requires that funds must be distributed proportionally based on each system's total debt compared to the overall debt of all state systems, using the most recent valuations provided by the Public Retirement Systems' Actuarial Committee. None of the funds given to a retirement system can be used to fund cost-of-living increases. The state retirement systems include the Louisiana State Employees' Retirement System (LASERS), Teachers' Retirement System of Louisiana (TRSL), Louisiana School Employees' Retirement System, and the Louisiana State Police Retirement System. Going into the election, the minimum requirement was 10%.[1]
The following table lists the unfunded accrued liability (UAL) of the state retirement funds as of June 30, 2022.[2]
| Unfunded Accrued Liability of state pension systems | Amount |
|---|---|
| Teachers' Retirement System of Louisiana | $9,089,700,550 |
| Louisiana State Employees Retirement System | $6,974,009,198 |
| Louisiana School Employees Retirement System | $686,968,204 |
| Louisiana State Police Retirement System | $302,965,699 |
| Total UAL as of 6/30/22 | $17,053,643,651 |
What percent of nonrecurring revenue was applied toward the state's retirement systems going into the election?
- See also: Background
The Louisiana Revenue Estimating Conference prepares an official forecast of revenue for current and upcoming fiscal years and designates which of the revenues are recurring and nonrecurring. The state constitution provides for certain types of appropriations that can be made using nonrecurring revenues, one of which is to fund the state's retirement systems. In October 2011, voters approved Amendment 2, which required a minimum of five percent of the nonrecurring revenue to be appropriated to the retirement systems' unfunded accrued liability starting from fiscal years 2013-2014 and 2014-2015, and increasing the minimum amount to ten percent in fiscal year 2015-2016.
How did this amendment 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 sponsored by Republican Representatives Richard Nelson and Barrow Peacock as House Bill 47. It was passed unanimously in the House. It was passed in the Senate by a vote of 37-2. One Democrat, Gary Smith Jr., and one Republican, Eddie Lambert, voted against the amendment in the Senate.[1]
Text of measure
Ballot question
The ballot question for the amendment was follows:[1]
| “ |
Do you support an amendment to require that a minimum of twenty-five percent of any money designated as nonrecurring state revenue be applied toward the balance of the unfunded accrued liability of the state retirement systems? (Amends Article VII, Section 10(D)(2)(b)(ii) and (iii)) [3] |
” |
Constitutional changes
- See also: Article VII, Louisiana Constitution
The ballot measure amended Section 10(D)(2)(b)(ii) and (iii)) of Article VII of the Louisiana Constitution. The following underlined text was added:[1]
Note: Hover over the text and scroll to see the full text.
§10. Expenditure of State Funds
(A) Revenue Estimating Conference. The Revenue Estimating Conference shall be composed of four members: the governor, or his designee, the president of the senate, or his designee, the speaker of the house or his designee, and a faculty member of a university or college in Louisiana who has expertise in forecasting revenues. Changes to the membership beyond the four members shall be made by law enacted by a favorable vote of two-thirds of the elected members of each house.
(B) Official Forecast. The conference shall prepare and publish initial and revised estimates of money to be received by the state general fund and dedicated funds for the current and next fiscal years which are available for appropriation. In each estimate, the conference shall designate the money in the estimate which is recurring and which is nonrecurring. All conference decisions to adopt these estimates shall be by unanimous vote of its members. Changes to the unanimous vote requirement shall be made by law enacted by a favorable vote of two-thirds of the elected members of each house. The most recently adopted estimate of money available for appropriation shall be the official forecast.
(C) Expenditure Limit. (1) The legislature shall provide for the determination of an expenditure limit for each fiscal year to be established during the first quarter of the calendar year for the next fiscal year. However, the expenditure limit for the 1991-1992 Fiscal Year shall be the actual appropriations from the state general fund and dedicated funds for that year except funds allocated by Article VII, Section 4, Paragraphs (D) and (E). For subsequent fiscal years, the limit shall not exceed the expenditure limit for the current fiscal year plus an amount equal to that limit times a positive growth factor. The growth factor is the average annual percentage rate of change of personal income for Louisiana as defined and reported by the United States Department of Commerce for the three calendar years prior to the fiscal year for which the limit is calculated.
(2) The expenditure limit may be changed in any fiscal year by a favorable vote of two-thirds of the elected members of each house. Any such change in the expenditure limit shall be approved by passage of a specific legislative instrument which clearly states the intent to change the limit.
(3) Beginning with the 1995-1996 Fiscal Year, the expenditure limit shall be determined in accordance with the provisions of Paragraph (J) of this Section. The redetermination of the expenditure limit for each fiscal year from the 1991-1992 Fiscal Year through the 1994-1995 Fiscal Year shall only be used in computing the expenditure limit for the 1995-1996 Fiscal Year and shall not affect the expenditure limit already computed in accordance with this Paragraph for such fiscal years.
(4) The provisions of this Paragraph shall not apply to or affect funds allocated by Article VII, Section 4, Paragraphs (D) and (E).
(D) Appropriations. (1) Except as otherwise provided by this constitution, money shall be drawn from the state treasury only pursuant to an appropriation made in accordance with law. Appropriations from the state general fund and dedicated funds except funds allocated by Article VII, Section 4, Paragraphs (D) and (E) shall not exceed the expenditure limit for the fiscal year.
(2) Except as otherwise provided in this constitution, the appropriation or allocation of any money designated in the official forecast as nonrecurring shall be made only for the following purposes:
(a) Retiring or for the defeasance of bonds in advance or in addition to the existing amortization requirements of the state.
(b)(i) Providing for payments against the unfunded accrued liability of the public retirement systems which are in addition to any payments required for the annual amortization of the unfunded accrued liability of the public retirement systems, as required by Article X, Section 29(E)(2)(c) of this constitution; however, any such payments to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.
(ii) For Fiscal Years 2013-2014 and 2014-2015 the legislature shall appropriate no less than five percent of any money designated in the official forecast as nonrecurring to the Louisiana State Employees' Retirement System and the Teachers' Retirement System of Louisiana for application to the balance of the unfunded accrued liability of such systems existing as of June 30, 1988, in proportion to the balance of such unfunded accrued liability of each such system. Any such payments to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.
(iii) For Fiscal Year 2015-2016 and every fiscal year thereafter through Fiscal Year 2023-2024, the legislature shall appropriate no less than ten percent of any money designated in the official forecast as nonrecurring to the Louisiana State Employees' Retirement System and the Teachers' Retirement System of Louisiana for application to the balance of the unfunded accrued liability of such systems existing as of June 30, 1988, in proportion to the balance of such unfunded accrued liability of each such system. Any such payments to the public retirement systems shall not be used, directly or indirectly, to fund cost-of-living increases for such systems.
(iii) For Fiscal Year 2024-2025 and each fiscal year thereafter, the legislature shall appropriate no less than twenty-five percent of any money designated in the official forecast as nonrecurring to the state retirement systems for application to their unfunded accrued liability. Money appropriated pursuant to this Item shall be applied by the receiving system to its outstanding positive amortization bases in the order in which they were created, from oldest to newest. The legislature may provide by law for a formula to distribute the nonrecurring money between those state retirement systems that have unfunded accrued liability. If the legislature has not provided by law for a distribution formula, nonrecurring money shall be appropriated pursuant to this Item to each system in the proportion that the system's total unfunded accrued liability bears to the total of all state system unfunded accrued liability, using the most recent system valuations adopted by the Public Retirement Systems' Actuarial Committee or its successor. Any payment to a state retirement system made pursuant to the provisions of this Item shall not be used, directly or indirectly, to fund cost-of-living increases for such system. [3]
Support
Supporters
Officials
- State Rep. Richard Nelson
- State Rep. Barrow Peacock (R)
Arguments
You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org.
Opposition
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 nonrecurring revenue
The Louisiana Revenue Estimating Conference prepares an official forecast of revenue for current and upcoming fiscal years and designates which of the revenues are recurring and nonrecurring. The state constitution provides for specific appropriations that can be made using nonrecurring revenues:[4]
- retiring bonds;
- payments to fund the unfunded accrued liability of public retirement systems;
- capital outlay projects;
- deposits to the Budget Stabilization Fund;
- deposits to the Coastal Protection and Restoration Fund; and
- new highway construction projects that have matching federal funds.
State retirement systems in Louisiana
The following table lists the unfunded accrued liability (UAL) of the state retirement funds as of June 30, 2022.[4]
| Unfunded Accrued Liability of state pension systems | Amount |
|---|---|
| Teachers' Retirement System of Louisiana | $9,089,700,550 |
| Louisiana State Employees Retirement System | $6,974,009,198 |
| Louisiana School Employees Retirement System | $686,968,204 |
| Louisiana State Police Retirement System | $302,965,699 |
| Total UAL as of 6/30/22 | $17,053,643,651 |
Amendment 2 of 2011
Amendment 2, approved by voters in October 2011, provided that, beginning with fiscal years 2013-2014 and 2014-2015, a minimum of five percent of nonrecurring revenue must be applied toward the unfunded accrued liability of the state's retirement systems, increasing to ten percent in fiscal year 2015-2016.
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 47. It was passed in the House by a vote of 103-0 on June 1, 2023. It was passed in the Senate by a vote of 37-2 on June 5, 2023.[1]
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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 47," accessed June 6, 2023
- ↑ Louisiana State Legislature, "House Bill 47 fiscal note," accessed June 29, 2023
- ↑ 3.0 3.1 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 - ↑ 4.0 4.1 Louisiana State Legislature, "House Bill 47 fiscal note," accessed June 29, 2023
- ↑ 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
- ↑ 7.0 7.1 7.2 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."
- ↑ 11.0 11.1 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
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