Constitutional Amendment No. 2, explained

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On March 29, Louisiana voters will decide the fate of a constitutional amendment—Constitutional Amendment No. 2—that would make some significant changes to the state’s tax and budget policies.

The measure, which would amend Article VII of the state constitution, was introduced as part of a package of bills backed by Gov. Jeff Landry and passed by the Louisiana Legislature during November’s special session on tax reform.

Speaking to the Press Club of Baton Rouge on Monday, Jan Moller, executive director of Invest in Louisiana, outlined some of the most consequential elements of the amendment, though he was quick to acknowledge the measure’s inherent complexity.

“It’s really a rewrite of the longest section of the state constitution,” he said. “I’m not being facetious when I say I defy you to find five people in the state of Louisiana who can comprehensively explain everything that you are going to be voting on in this constitutional amendment.”

Teacher pay raises—with a catch

The amendment would grant a permanent $2,000 pay raise for public school teachers and a $1,000 raise for school support staff. The raises replace a temporary stipend that teachers have received for the past two years.

“If you’re a teacher, you’re getting the same exact amount of money next year as you’re getting this year,” Moller said.

To fund the pay raises, two constitutionally protected education trust funds—the Education Excellence Fund and the Education Quality Support Fund—would be dissolved and their funds would be transferred to the Teachers’ Retirement System of Louisiana. That’s something that, according to Moller, could impact a long list of state education programs going forward.

Changes to state spending limits

A new “government growth limit” would replace the state’s current spending cap, placing an artificial constraint on the ability of future legislators to appropriate money for new programs.

“What that means in practical terms is even if Louisiana were to somehow find itself with more revenue than it expected, if that revenue exceeds the government growth limit, it could not, under any circumstances, be plugged into additional programs,” Moller said. “It could only be spent on one-time items.”

Lower personal income tax cap

The state’s maximum personal income tax rate would be permanently lowered from 4.75% to 3.75%, making it more difficult for future legislators to shift the state’s reliance on sales tax revenue toward income tax revenue should they choose to do so. On Jan. 1, the state’s graduated personal income tax rates were flattened to an across-the-board 3% rate.

Individuals 65 and older would be entitled to an additional standard deduction equal to the amount applicable for a single individual under state statute.


This is not a comprehensive overview of Constitutional Amendment No. 2. The bill that laid it out—House Bill 7—is 115 pages long. Review it here.

Invest in Louisiana, formerly known as the Louisiana Budget Project, is a nonpartisan think tank with a stated goal of driving policy change to advance economic prosperity for all Louisianans.