Early voting is underway in Louisiana, and on the ballot are four constitutional amendments. One of them, Amendment 2, is extremely intricate.
If passed, it would be the most significant revision of the state’s constitution since 1974.
Capitol Access Reporter Brooke Thorington spoke with Louisiana Considered’s Karen Henderson to break down the ballot.
This report has been edited for length and clarity.
KAREN: Give us an overview of Amendment 2.
BROOKE: Unfortunately, that would probably take three hours but I’lll do my best with the time we have.
Amendment 2 revises Article VII of the State Constitution, there are multiple issues at play here. The legislation that passed in the special session in November is more than 100 pages in length and the ballot language is the following:
“Do you support an amendment to revise Article VII of the Constitution of Louisiana including revisions to lower the maximum rate of income tax, increase income tax deductions for citizens over sixty-five, provide for a government growth limit, modify operation of certain constitutional funds, provide for property tax exemptions retaining the homestead exemption and exemption for religious organizations, provide a permanent teacher salary increase by requiring a surplus payment to teacher retirement debt, and make other modifications?”
The Amendment has been promoted as the teacher pay raise amendment and one to lower your income tax and to double the standard deduction for seniors. But Amendment 2 covers multiple issues.
Passage would:
Cap the income tax rate to a flat 3%: This is a positive for individuals with incomes greater than $12,501. But this would negatively impact individuals making $12,500 or less because their income tax rate was 1.85%. So that’s a tax increase on the least wealthy and quite the break for incomes higher than $50,000. Instead of 4.25% they would be taxed at 3%.
It would also double the standard deduction for seniors 65 and older, from $12,500 to $25,000.
It would also reduce the corporate income tax to 5.5% and eliminate the corporate franchise tax.
To make up for the loss in state revenue due to less income and corporate taxes the state sales tax increased to 5%, among the highest in the country when you include local taxes collected on top of that. Before the special session when you looked at doing business in the state, on paper the benefits weren’t as attractive compared to other states. But then businesses would negotiate tax exemptions.The tax session basically wiped out those exemptions for the most part and with the tax breaks added in Amendment 2 the state is on a more level playing field, due to elimination of the corporate franchise tax and lowering the corporate income tax.
KAREN: That’s a lot to take in…
BROOKE: But wait there’s more, just getting warmed up
Amendment 2 also merges the state’s rainy-day state savings account with another trust.
It liquidates three education trust funds to pay off teacher retirement debt, with the intention that once that debt decreases it allows local school systems to then use those savings to make the current teacher pay stipends permanent. But opponents say that’s not a guarantee and if the legislature really wanted to support teacher pay they would have done so through the state’s school funding formula.
It also removes some property tax exemption protections from the constitution into statute to allow the legislature to make changes as they see fit versus having to go before voters in the form of a constitutional amendment.
KAREN: And Amendment 2 is also facing litigation. Still, it will appear on the ballot. What will this mean for what voters decide?
BROOKE: Yes, the plaintiffs are a pastor and two teachers. Because of the last two issues I mentioned, the teacher pay and liquidation of three education trust funds, and the property tax exemption for churches and nonprofits.
The lawsuit alleges that the ballot language is misleading and does not adequately explain what is at stake with Amendment 2. The first hearing was last week in Baton Rouge and the judge ruled the plaintiffs have the right to go forward with a preliminary injunction hearing.
Defendant Secretary of State Nancy Landry argued the case should be tossed because it’s too close to the election and because the plaintiffs don’t have grounds to sue under Louisiana law.
Attorney General Liz Murrill filed an emergency appeal on Friday to the Louisiana Supreme Court. She’s been quoted as saying "the law indisputably prohibits lawsuits like this."
Plaintiff attorney William Most says “voting only works if what is being asked of the voters is transparent and truthful about the changes that would be made.”
Pending the outcome of the emergency appeal, a hearing on Amendment 2 is slated to go forward on Friday.
So early voting continues on Amendment 2, and if the plaintiffs ultimately win, the vote count wouldn’t matter.
There are multiple organizations and advocacy groups giving their insight on all of the amendments, and we have links to those on our website.
KAREN: That’s a lot to digest.
BROOKE: Most definitely, so while some things might be favorable for some they aren’t necessarily for others. But this is an all or nothing amendment so voters need to decide if there are more pros than cons or more cons than pros when they cast their vote.
Here’s where organizations around the state stand on the measure.
| Organization | Amendment 1 | Amendment 2 | Amendment 3 | Amendment 4 |
|---|---|---|---|---|
| ACLU | Oppose | Oppose | Oppose | Oppose |
| Invest in Louisiana | Oppose | Oppose | Oppose | Oppose |
| LABI | Support | Support | No position | Support |
| LA Center for Children’s Rights | Oppose | Oppose | Oppose | Oppose |
| LA Federation of Teachers | No position | Support | Oppose | No position |
| LA Democratic Party | Oppose | Oppose | Oppose | Oppose |
| LA Republican Party | Support | Support | Support | Support |
| Leaders for a Better LA | Oppose | Support | Oppose | No position |
