Isabella Carter
Louisiana Constitutional Amendment 2, also known as the Louisiana State Taxation Policy Amendment, was on the ballot in Louisiana as a legislatively referred constitutional amendment on March 29, 2025. The amendment proposed to revise Article VII of the Constitution of Louisiana, including lowering the maximum rate of income tax, increasing income tax deductions for citizens over 65, providing for a government growth limit, modifying certain constitutional funds, and providing permanent teacher salary increases. While supporters of the amendment believed it would improve tax and budget policies in the state, opponents argued that it was presented to voters in misleading language and would negatively impact essential services and education funding. Ultimately, Louisiana voters rejected Amendment 2, along with three other constitutional amendments proposed by Republican Gov. Jeff Landry.
| Characteristics | Values |
|---|---|
| Supporters | Conservative Republican Charles Koch, founder of Americans for Prosperity |
| Daniel Erspamer, CEO of the Pelican Institute | |
| Republican-dominated legislature | |
| Opponents | William Most, an attorney |
| Religious groups and nonprofits | |
| Woody Jenkins, chairman of the East Baton Rouge Republican Party and a former state representative | |
| Voters | |
| Reasons for Support | To lower the maximum income tax rate the state could enact |
| To restrict annual state budget increases | |
| To make it more difficult to enact new tax breaks | |
| Reasons for Opposition | The amendment is presented in misleading language |
| The amendment will leave Louisiana with less revenue at state and local levels | |
| The amendment will reduce the state's emergency reserves and eliminate a source of funding for capital construction projects | |
| The amendment will eliminate three state trust funds safeguarding revenue from offshore oil and gas production and the global settlement with tobacco companies | |
| The amendment will eliminate constitutionally protected K-12 education funds | |
| The amendment will not guarantee any additional funding for teacher pay raises |
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What You'll Learn
The amendment would have lowered the maximum income tax rate
Louisiana Constitutional Amendment 2, which was put forward by Republican Gov. Jeff Landry, would have lowered the maximum income tax rate the state could enact. It would also have restricted annual state budget increases and made it harder to enact new tax breaks. The amendment was rejected by voters in March 2025.
The amendment was supported by conservative groups, including the Pelican Institute, a conservative think tank, and Americans for Prosperity, a group founded by Republican billionaire Charles Koch. Supporters believed that the amendment would have benefited the state by overhauling its tax and budget laws. They argued that it would have lowered taxes and promoted fiscal responsibility.
However, the amendment faced significant opposition from various groups, including religious organizations and nonprofits, who believed that it would weaken constitutional protections for property tax exemptions. Opponents also argued that the amendment was misleading and failed to capture the true extent of what voters were being asked to consider. For example, it was passed during a rushed 16-day special session where wholesale changes were made to the state tax structure, including cutting personal income and corporate taxes while raising the state sales tax.
In addition, the amendment would have eliminated three state trust funds created to safeguard windfall revenue from offshore oil and gas production and the tobacco settlement. These funds currently support education programs, and their elimination could have resulted in a loss of essential education funding. The amendment was also criticised for potentially reducing the state's emergency reserves and funding for capital construction projects.
The rejection of Amendment 2 highlights the voters' desire for transparency and understanding when it comes to constitutional changes. It also underscores the importance of addressing the state's fiscal and educational needs in a comprehensive and well-communicated manner.
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It would have restricted budget increases and new tax breaks
Louisiana Constitutional Amendment 2, which was put forward by Republican Gov. Jeff Landry, would have lowered the maximum income tax rate the state could enact and restricted annual state budget increases. It would also have made it more challenging to implement new tax breaks. The proposal was anticipated to generate a financial windfall for Landry and state legislators later in 2025.
The amendment included a government growth limit, which was based on the premise that the current state budget is adequate to meet the needs of Louisiana's citizens. However, critics argued that this was not the case in Louisiana and that future lawmakers needed to have the flexibility to make decisions based on the needs of the moment and available resources. The growth limit proposed in Amendment 2 was believed to hinder lawmakers from making the necessary investments to address the state's chronic unmet needs.
Additionally, Amendment 2 would have eliminated three state trust funds created by voters to safeguard windfall revenue from offshore oil and gas production and the global settlement with tobacco companies. These funds, totalling approximately $2 billion, were intended to provide a one-time payment to the Teachers' Retirement System of Louisiana (TRSL) to reduce retirement system debt. By eliminating this debt, local school districts would have had more financial flexibility to provide salary increases for teachers and support staff.
Supporters of Amendment 2, including conservative groups like Americans for Prosperity, argued that it would have provided a permanent teacher salary increase. However, critics countered that it would have eliminated essential education funding and that any salary increases would have come from different funding sources rather than additional funding. Amendment 2 was ultimately rejected by Louisiana voters, with nearly two-thirds voting against it.
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It would have reduced the state's emergency reserves
Amendment 2, on the ballot for the March 29, 2025, election in Louisiana, proposes a substantial change to the state's constitution. It would have revised Article VII, the constitution's longest article, to lower the maximum rate of income tax, increase income tax deductions for citizens over 65, and provide for a government growth limit, among other changes.
One of the key provisions of Amendment 2 was the creation of a new Government Growth Limit. This limit was based on the assumption that the current state budget is adequate to meet the needs of Louisiana's citizens. However, critics argued that this was not the case in Louisiana and that the growth limit would hinder future lawmakers from making necessary investments to address the state's chronic unmet needs.
Amendment 2 would have also reduced the state's emergency reserves. The original legislation proposed by the administration included a provision to ensure stable funding for the "Rainy Day" fund, which would have required a percentage of revenues from mineral and corporate taxes to be deposited in the fund if it fell below the cap. However, this provision was removed from the final version of the amendment. As a result, the state's ability to address budget downturns and emergencies may be impacted.
In addition, Amendment 2 would have eliminated three state trust funds created to safeguard windfall revenue from offshore oil and gas production and tobacco company settlements. These funds currently provide interest income for education programs, from pre-K through college. The funds hold approximately $2 billion, which was intended to be used for a one-time payment to the Teachers' Retirement System of Louisiana (TRSL) to reduce retirement system debt. By pre-paying this debt, local school systems would have lower costs, freeing up money for teacher pay raises and support staff increases.
The amendment's impact on education funding is a significant concern. It would have eliminated constitutionally protected K-12 education funds and potentially reduced funding for capital construction projects. While it proposes a permanent teacher salary increase, it does not guarantee additional funding for these raises and instead shifts the burden to local school districts.
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It would have eliminated certain constitutional funds
Louisiana Constitutional Amendment 2, also known as the \"Remove Constitutional References to Inactive State Funds Amendment\", was on the ballot in Louisiana as a legislatively referred constitutional amendment on November 18, 2023. It was approved unanimously in both chambers of the legislature.
The amendment proposed to eliminate or alter more than half of the special funds that reside in Article VII of the Louisiana Constitution. This includes the Revenue Stabilization Trust Fund (RSTF), which holds approximately $2 billion. The fund's balance would be spent on a one-time payment to the Teachers' Retirement System of Louisiana (TRSL) to be applied to retirement system debt. By eliminating the RSTF, the state would reduce its emergency savings by $1.1 billion.
Amendment 2 would also eliminate three state trust funds created by voters to safeguard windfall revenue from offshore oil and gas production and the global settlement with tobacco companies. The interest from these funds is spent on supporting education programs, from pre-kindergarten through college. These three funds hold approximately $2 billion, which would also be used for a one-time payment to the TRSL. The funds eliminated by Amendment 2 provide $64 million in essential education funding.
Additionally, Amendment 2 would remove constitutional protection for the property tax exemptions currently enjoyed by nonprofit organizations, including hospitals, schools, unions, and social aid and pleasure clubs. It would also delete a fund supporting infant mortality programs and remove constitutional authorization for farmers' and fishermen's programs.
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It was supported by Republican Gov. Jeff Landry and Charles Koch
Louisiana Constitutional Amendment 2, which was on the ballot on March 29, 2025, was supported by Republican Gov. Jeff Landry and conservative billionaire Charles Koch. The amendment would have revised Article VII of the Constitution of Louisiana, including lowering the maximum income tax rate, increasing income tax deductions for citizens over 65, and restricting annual state budget increases. It also would have eliminated certain constitutional funds, including three state trust funds with approximately $2 billion that were created to safeguard windfall revenue from offshore oil and gas production and the tobacco settlement.
Gov. Landry's support for Amendment 2 is consistent with his political agenda and priorities. As governor, he is responsible for submitting a proposed budget to the legislature and can create executive orders that impact state policy. Amendment 2 would have given him more control over the state's fiscal policies and reduced revenue available for essential services. It is not surprising that Landry, a Republican, supported this amendment, as Republicans generally favour lower taxes and smaller government.
Charles Koch, a conservative Republican billionaire, also backed the amendment. Koch is the founder of Americans for Prosperity, a group that actively campaigned for the proposal through door-knocking, phone banking, and direct mail. Koch's support for Amendment 2 is aligned with his political and ideological beliefs, as he has a history of advocating for limited government and lower taxes.
While Amendment 2 had the support of Gov. Landry and Koch, it faced opposition from various groups and individuals. Religious organizations and nonprofits were concerned about the potential weakening of property tax exemptions. Additionally, critics argued that the amendment's language was misleading and convoluted, making it difficult for voters to understand the full implications of the proposed changes. Despite the support from Landry and Koch, Louisiana voters ultimately rejected Amendment 2, along with three other constitutional amendments backed by the governor.
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Frequently asked questions
Louisiana Constitutional Amendment 2 is a proposal to revise Article VII of the Constitution of Louisiana. It includes changes such as lowering the maximum income tax rate, increasing income tax deductions for citizens over 65, and providing a permanent teacher salary increase.
Louisiana Constitutional Amendment 2 was supported by Republican Gov. Jeff Landry and the Republican-dominated legislature. It also received support from conservative groups such as Americans for Prosperity, founded by billionaire Charles Koch, and the Pelican Institute, a conservative think tank.
Supporters of Amendment 2 argued that it would provide tax relief for citizens, particularly those over 65, and address the issue of underpaid teachers in the state. They also believed that it would promote sound financial management by limiting government spending growth.
Opponents of Amendment 2 criticized it for potentially reducing revenue for essential services, misleading voters with convoluted language, and eliminating important funding sources for education and other vital programs. They also argued that it would restrict future lawmakers' ability to make necessary investments in the state.
Louisiana Constitutional Amendment 2 was rejected by voters in the March 29, 2025, election, along with three other constitutional amendments proposed by Gov. Landry. Nearly two-thirds of voters turned down Amendment 2, expressing their disagreement with the proposed changes to the state's tax and budget laws.
