Louisiana Amendment 3, Use of Budget Stabilization Fund for Declared Disasters Amendment (2020)

Louisiana Amendment 3
Election date November 3, 2020
Topic State and local government budgets, spending and finance
Status a Approved
Type Constitutional amendment	Origin State legislature
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Louisiana Amendment 3, the Use of Budget Stabilization Fund for Declared Disasters Amendment, was on the ballot in Louisiana as a legislatively referred constitutional amendment on November 3, 2020. It was approved.

A "yes" vote supported amending the state constitution to allow 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.

A "no" vote opposed amending the state constitution to allow the Louisiana State Legislature to use up to one-third of the revenue in the Budget Stabilization Fund to cover the state's costs associated with a federally-declared disaster, thereby maintaining the restricted use of the fund according to budget forecasts and deficits.

Election results

Louisiana Amendment 3
Result		Votes	Percentage
Yes		1,097,196	55.34%
No		885,304	44.66%

Results are officially certified.

Source

Overview

What did Amendment 3 change about the Budget Stabilization Fund?

See also: Text of measure

Amendment 3 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. At the time of the election, the Louisiana Constitution restricted the use of and deposits into the fund according to budget forecasts and deficits.

What is the Budget Stabilization Fund?

See also: Louisiana Budget Stabilization 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.

How was Amendment 3 put on the ballot?

See also: Path to the ballot

Rep. Gary Carter Jr. (D) introduced Amendment 3 as House Bill 267 on February 26, 2020. On May 22, 2020, the Louisiana House of Representatives approved the constitutional amendment in a vote of 96-0 with eight representatives absent or not voting and one vacancy. The Senate approved the measure with amendments on May 29, and the House did not concur with the amendments. A conference committee was convened and a committee report was adopted by a vote of 95-0 in the House and 34-0 in the Senate.

Measure design

Amendment 3 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.

At the time of the election, section 10.3 of Article VII of the Louisiana Constitution stated the following four circumstances under which the state legislature may use and deposit into 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, two-thirds of the legislature may consent to 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; and
• The amount in the fund cannot exceed 4 percent of total state revenue receipts for the previous fiscal year.

Text of measure

Ballot title

The ballot title was as follows:

“

Do you support an amendment to allow for the use of the Budget Stabilization Fund, also known as the Rainy Day Fund, for state costs associated with a disaster declared by the federal government? (Amends Article VII, Section 10.3(C)(3) and (4); Adds Article VII, Section 10.3(A)(5) and (C)(5))

”

Ballot summary

The ballot summary was as follows:

“ Present Constitution establishes in the state treasury a Budget Stabilization Fund and provides for the deposit of money in the fund. Proposed Constitutional Amendment provides for the deposit in the fund of an amount equivalent to the money received by the state from the federal government for reimbursement of costs associated with a federally declared disaster in an amount not to exceed the amount of costs appropriated out of the fund for the same disaster up to 1/3 of the fund, not to exceed the state costs associated with the disaster, after obtaining the consent of 2/3 of the elected members of each house of the legislature. Present Constitution provides that money in the fund shall not be available for appropriation or use except under the following conditions and with the consent of 2/3 of the elected members of each house of the legislature: (1) If the official forecast of recurring money for the next fiscal year is less than the official forecast of recurring money for the current fiscal year, the difference not to exceed 1/3 of the fund shall be incorporated into the next year’s official forecast. (2) If a deficit for the current fiscal year is projected due to a decrease in the official forecast, an amount equal to 1/3 of the fund not to exceed the projected deficit may be appropriated. (3) In no event shall the amount included in the official forecast for the next fiscal year plus the amount appropriated in the current fiscal year exceed 1/3 of the fund balance at the beginning of the current fiscal year. (4) No appropriation or deposit to the fund shall be made if such appropriation or deposit would cause the balance in the fund to exceed 4% of total revenue receipts for the previous fiscal year. Proposed Constitutional Amendment provides that money in the fund up to 1/3 of the fund and not to exceed the state costs associated with the disaster after consent of 2/3 of the elected members of each house of the legislature may be appropriated. Also provides that the appropriation may be made between sessions of the legislature only with written consent of 2/3 of the elected members of each house of the legislature. Proposed Constitutional Amendment retains present constitution and provides that in no event shall the amount included in the official forecast of the next fiscal year, plus the amount appropriated in the current fiscal year plus the amount appropriated as a result of a federally declared disaster shall exceed 1/3 of the fund balance at the beginning of the current fiscal year. ”

Constitutional changes

See also: Article VII of the Louisiana Constitution

The measure amended section 10.3 of Article VII of the state constitution. The following underlined was added, and struck-through text was deleted:

Note: Hover over the text and scroll to see the full text.

Text of Section 10.3: Budget Stabilization Fund

(A) There is hereby established in the state treasury a Budget Stabilization Fund hereinafter referred to as the fund. Money shall be deposited in the fund as follows:

(1) All money available for appropriation from the state general fund and dedicated funds in excess of the expenditure limit, except funds allocated by Article VII, Section 4, Paragraphs (D) and (E), shall be deposited in the fund.

(2)(a) All revenues received in each fiscal year by the state in excess of seven hundred fifty million dollars, hereinafter referred to as the base, as a result of the production of or exploration for minerals, hereinafter referred to as mineral revenues, including severance taxes, royalty payments, bonus payments, or rentals, and excluding such revenues designated as nonrecurring pursuant to Article VII, Section 10(B) of the constitution, any such revenues received by the state as a result of grants or donations when the terms or conditions thereof require otherwise, and revenues derived from any tax on the transportation of minerals, shall be deposited in the fund after the following allocations of said mineral revenues have been made:

(i) To the Bond Security and Redemption Fund as provided by Article VII, Section 9 (B) of this constitution.

(ii) To the political subdivisions of the state as provided in Article VII, Sections 4 (D) and (E) of this constitution.

(iii) As provided by the requirements of Article VII, Section 10-A and 10.1 of this constitution.

(b) The base may be increased every ten years beginning in the year 2000 by a law enacted by two-thirds of the elected members of each house of the legislature. Any such increase shall not exceed fifty percent in the aggregate of the increase in the consumer price index for the immediately preceding ten years.

(3) Twenty-five percent of any money designated in the official forecast as nonrecurring as provided in Article VII, Section 10(D)(2) of this constitution shall be deposited in and credited to the fund.

(4) Any money appropriated to the fund by the legislature including any appropriation to the fund from money designated in the official forecast as provided in Article VII, Section 10(D)(2) of this constitution shall be deposited in the fund.

(5) An amount equivalent to the money received by the state from the federal government for the reimbursement of costs associated with a federally declared disaster, not to exceed the amount of costs appropriated out of the fund for the same disaster pursuant to Subparagraph (C)(3) of this Section.

(B) Money in the fund shall be invested as provided by law. Earnings realized in each fiscal year on the investment of monies in the fund shall be deposited to the credit of the fund. All unexpended and unencumbered monies in the fund at the end of the fiscal year shall remain in the fund.

(C) The money in the fund shall not be available for appropriation or use except under the following conditions:

(1) If the official forecast of recurring money for the next fiscal year is less than the official forecast of recurring money for the current fiscal year, the difference, not to exceed one-third of the fund shall be incorporated into the next year's official forecast 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) If a deficit for the current fiscal year is projected due to a decrease in the official forecast, an amount equal to one-third of the fund not to exceed the projected deficit may be appropriated after the consent of two-thirds of the elected members of each house of the legislature. Between sessions of the legislature the appropriation may be made only after the written consent of two-thirds of the elected members of each house of the legislature.

(3) If there is a federally declared disaster in the state, up to one-third of the fund, not to exceed the state costs associated with the disaster, may be appropriated after the consent of two-thirds of the elected members of each house of the legislature. Between sessions of the legislature, the appropriation may be made only with written consent of two-thirds of the elected members of each house of the legislature.

(3)(4) In no event shall the amount included in the official forecast for the next fiscal year pursuant to Subparagraph (1) of this Paragraph, plus the amount appropriated in the current fiscal year pursuant to Subparagraph (2) of this Paragraph, plus the amount appropriated pursuant to Subparagraph (3) of this Paragraph exceed one-third of the fund balance at the beginning of the current fiscal year.

(4)(5) No appropriation or deposit to the fund shall be made if such appropriation or deposit would cause the balance in the fund to exceed four percent of total state revenue receipts for the previous fiscal year.

Readability score

See also: Ballot measure readability scores, 2020

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 10, and the FRE is 50. The word count for the ballot title is 47, and the estimated reading time is 12 seconds. The FKGL for the ballot summary is grade level 9, and the FRE is 51. The word count for the ballot summary is 418, and the estimated reading time is 1 minute and 51 seconds.

Support

Supporters

Officials

• State Representative Gary Carter Jr. (D)

Arguments

• Louisianan State Representative Gary Carter Jr., sponsor of the measure: "We can’t access our ‘rainy day’ fund when we have a true rainy day."
• Public Affairs Research Council of Louisiana: The Public Affairs Research Council of Louisiana (PAR), a nonprofit organization, published arguments for and against each amendment on the ballot. PAR wrote the following argument in support of Amendment 3: "Louisiana is frequently beset with disasters such as hurricanes and floods. The cost of the response is often expensive. The federal government will reimburse the state a large portion of disaster related expenses, but the state might not have adequate resources readily available to pay up front or to pay its share. To prevent a cash flow crisis, the state could tap the Rainy Day Fund quickly and get reimbursed later, if this amendment passes. Under the companion statute, the state would use the federal reimbursement to refill the money taken out of the fund. The state needs this tool in our belt for weather disasters and public health crises. The amendment retains the other requirements and protections that come with the Rainy Day Fund."

Opposition

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

Arguments

• Public Affairs Research Council of Louisiana: The Public Affairs Research Council of Louisiana (PAR), a nonprofit organization, published arguments for and against each amendment on the ballot. PAR wrote the following argument in opposition to Amendment 3: "It is a close call whether natural disasters or fiscal crises are more common in Louisiana. Under this amendment the Rainy Day Fund could be tapped even if the state isn’t facing a sudden shortfall in revenue. This new method of tapping the fund would be used way too frequently and undermine the original purpose and function of the Rainy Day Fund, which is to temper the state budget in times of revenue surges and boost the budget when revenue unexpectedly falls or economic cycles turn downward. The fund is already designed to handle state financial problems appropriately even in the case of disasters. If a disaster results in a forecast of lower state revenue, the fund can be tapped under current law, as it was in the early aftermath of Hurricane Katrina. If a disaster does not lower state revenue, then the Rainy Day Fund should be left alone and other means should be found to cover any emergency costs, including budget changes or tapping dedicated disaster funds. The state usually has years to pay back federal disaster aid. The companion statute’s provision for refilling the fund has no teeth and could be overridden easily in the state budget process. The original purpose of the Rainy Day Fund would be undermined and the state’s bond rating could suffer as a result. This amendment and its complicated companion statute were passed with virtually no committee debate supporting or opposing the legislation. The idea should be sent back to the Legislature for a more thorough hearing and process."

Campaign finance

The campaign finance information on this page reflects the most recent scheduled reports that Ballotpedia has processed, which covered through December 3, 2020.

See also: Campaign finance requirements for Louisiana ballot measures

Ballotpedia did not identify any committees registered in support of or in opposition to the 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 Budget Stabilization Fund

On October 6, 1990, Louisiana voters approved Amendment 2 with 78 percent of the vote. The amendment 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.

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

Fiscal year	Balance	Amount used
2019-20	$409,255,106	$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

On June 30, 2020, the Louisiana State Legislature approved the House Concurrent Resolution 1 (HCR 1), which appropriated over $90 million from the Budget Stabilization Fund for fiscal year 2020-2021.

Amendments to the Budget Stabilization Fund

The following amendments proposed changes to the Budget Stabilization Fund:

Year	Measure	Description	Outcome
1998	Louisiana Rainy Day Fund and Uses of Nonrecurring Money, Amendment 5	Required 25 percent of annual non-recurring income not exceeding four percent of state revenues of the previous fiscal year to be directed to the state's budget stabilization fund	a
2003	Louisiana Mineral Revenues Act, Ballot Measure 11	Proposed that mineral revenues could not be counted twice in the state budget when determining the number of such revenues to be deposited in the Budget Stabilization Fund	a
2011	Louisiana Budget Stabilization Fund, Amendment 4	Would have provided for deposits and interruption of mineral revenue deposits to the Budget Stabilization Fund	d
2015	Louisiana Budget and Transportation Stabilization Trust, Amendment 1	Would have renamed the fund the Budget and Transportation Stabilization Trust and would have broken it into two subfunds: one to act as the original Budget Stabilization Fund and another to become a new transportation fund	d

Amendments on the ballot in Louisiana

See also: List of Louisiana ballot measures

The following statistics are based on legislatively referred constitutional amendments between 1995 and 2019 in Louisiana:

• Ballots featured 189 constitutional amendments.
  • Even-year ballots featured 121 constitutional amendments.
• An average of 10 measures appeared on even-year statewide ballots.
• The number of ballot measures on even-year statewide ballots ranged from four to 21.
• Voters approved 75 percent (141 of 189) and rejected 25 percent (48 of 189) of the constitutional amendments.

Legislatively-referred constitutional amendments, 1995-2018
Total number	Approved	Percent approved	Defeated	Percent defeated	Even-year average	Even-year median	Even-year minimum	Even-year maximum
189	141	74.6%	48	25.4%	10.1	8.0	4	21

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 constitutional amendment to the ballot for voter consideration.

Rep. Gary Carter Jr. (D) introduced the constitutional amendment as House Bill 267 on February 26, 2020. On May 22, 2020, the Louisiana House of Representatives approved the constitutional amendment in a vote of 96-0 with eight representatives absent or not voting and one vacancy. The Senate approved the measure with amendments on May 29, and the House did not concur with the amendments. A conference committee was convened and a committee report was adopted by a vote of 95-0 in the House and 34-0 in the Senate.

Vote in the Louisiana House of Representatives June 1, 2020
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 70  a
	Yes	No	Not voting
Total	95	0	9
Total percent	91.35%	0.00%	8.65%
Democrat	28	0	7
Republican	65	0	2
Independent	2	0	0

Vote in the Louisiana State Senate June 1, 2020
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 26  a
	Yes	No	Not voting
Total	34	0	5
Total percent	87.2%	0.0%	12.8%
Democrat	10	0	2
Republican	24	0	3

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.

How to cast a vote in Louisiana

The information below covers regular voting policies in the state. Information may have not applied to the election on November 3, 2020, because of temporary changes in response to coronavirus. Click here to read about changes made for the 2020 elections. Poll times In Louisiana, polls are open from 6:00 a.m. to 8:00 p.m. Central Time for Tuesday elections. For Saturday elections, polls are open from 7:00 a.m. to 8 p.m. Central Time. Anyone in line when the polls close must be allowed to vote. Registration Check your voter registration status here. To vote in Louisiana, one must provide documentary proof of United States citizenship and be a resident of the state and parish in which they register. A voter must be at least 18 years old by Election Day. Registration completed via mail or in person must occur at least 30 days before Election Day. Registration completed online must occur at least 20 days before Election Day. Registrants must present a valid form of identification to register. Pre-registration is available beginning at age 16 for voters registering at a Registrar of Voters office or at the Louisiana Office of Motor Vehicles. Voters may register in person at any Registrar of Voters office or any of the following places: Louisiana Office of Motor Vehicles Louisiana Department of Social Services WIC offices Food stamp offices Medicaid offices Offices serving persons with disabilities such as the Deaf Action Centers and Independent Living Offices Armed Forces recruitment offices Automatic registration See also: Automatic voter registration Louisiana does not practice automatic voter registration. Online registration See also: Online voter registration Louisiana has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registration See also: Same-day voter registration Louisiana does not allow same-day voter registration. Residency requirements Louisiana law requires 20 days of residency in the state before a person may vote. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States Louisiana state law requires a voter registration applicant to provide proof of citizenship to register to vote. As of November 2025, the state had not implemented the requirement. All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment. Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. One state, Ohio, requires proof of citizenship only when registering to vote at a Bureau of Motor Vehicles facility. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters. Verifying your registration The site Geaux Vote, run by the Louisiana Secretary of State office, allows residents to check their voter registration status online. Voter ID requirements Louisiana requires voters to present photo identification while voting. Voters can present the following forms of identification. This list was current as of November 2025. Click here to ensure you have the most current information. “ Each voter is required to identify themselves by giving their name and address to a commissioner and by presenting either a Louisiana driver's license, a Louisiana special identification card, LA Wallet digital driver's license, a United States military identification card that contains the voter's name and picture or other generally recognized picture identification card that contains the name and signature of the applicant. If no photo ID is available, the voter can complete a Voter Identification Affidavit (AV-34) but is subject to challenge by law. ” To view Louisiana state law pertaining to voter identification, click here. Registered voters can bring their voter information card to the Office of Motor Vehicles to receive a free Louisiana special identification card.

See also

2020 measures

• 2020 ballot measures
• Budgets on the ballot

Louisiana

• Louisiana ballot measures
• Louisiana ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Louisiana House Bill 267 (2020)
• Nov. 3, 2020 Constitutional Amendments Summaries