Louisiana Amendment 4, Expenditures Limit Growth Formula Amendment (2020)

Louisiana Amendment 4
Election date November 3, 2020
Topic State and local government budgets, spending and finance
Status d Defeated
Type Constitutional amendment	Origin State legislature
List of Louisiana measuresLouisiana Amendment 1Louisiana Amendment 2Louisiana Amendment 3Louisiana Amendment 4Louisiana Amendment 5Louisiana Amendment 6Louisiana Amendment 7Louisiana Allow for Out-of-State Members to the University Board of Supervisors AmendmentSubmit

Louisiana Amendment 4, the Expenditures Limit Growth Formula Amendment, was on the ballot in Louisiana as a legislatively referred constitutional amendment on November 3, 2020. It was defeated.

A "yes" vote supported amending the state constitution to remove the existing expenditure limit formula and allow the Louisiana Legislature to enact a state spending limit formula through statute that does not allow more than 5 percent growth per year.

A "no" vote opposed amending the state constitution to allow the Louisiana Legislature to enact a state spending formula through statute capped at 5 percent growth, thereby maintaining the existing constitutional formula that caps state spending growth at the prior year's spending limit multiplied by the average annual percentage rate of change of personal income for Louisiana for the three years prior.

Election results

Louisiana Amendment 4
Result		Votes	Percentage
Yes		856,559	44.24%
No		1,079,618	55.76%

Results are officially certified.

Source

Overview

How would Amendment 4 have changed the formula used to calculate state expenditures?

See also: Text of measure

Amendment 4 would have changed the formula used to determine how much revenue the state is allowed to spend each year. As of 2020, the Louisiana Constitution capped state spending growth at the prior year's spending limit multiplied by the average annual percentage rate of change of personal income for Louisiana for the three years prior. The measure would have removed the expenditure limit formula from the Louisiana Constitution and allowed the state legislature to enact a spending formula through a statute that does not allow more than 5 percent growth per year. The new proposed formula, if it were approved by voters, would have taken effect on June 30, 2022.

At the time of the election, how many states imposed expenditure limits?

See also: State spending and revenue limits

As of October 2020, 12 states had imposed spending limits, 13 states had imposed spending and revenue limits, eight states had imposed revenue limits but not spending limits, and 17 states and Washington D.C. had imposed no limits.

Of the 25 states that imposed a state spending limit, 17 states included personal income growth as a factor for setting its spending limit. Eight states did not include personal income growth as a factor. Instead, the eight states used a combination of projected revenue, inflation, or population growth.

How did Amendment 4 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 constitutional amendment to the ballot for voter consideration. Rep. Beau Beaullieu (R) introduced Amendment 4 as House Bill 464 on February 28, 2020. On May 22, 2020, the Louisiana House of Representatives approved the constitutional amendment in a vote of 101-0 with three Democratic representatives absent or not voting and one vacancy. The Senate passed the measure in a vote of 34-0 with five senators absent or not voting on June 1, 2020.

A similar measure was proposed in the 2018 Louisiana legislative session. It passed the state House, but it did not pass the state Senate.

Text of measure

Ballot title

The ballot title was as follows:

“

Do you support an amendment to limit the growth of the expenditure limit for the state general fund and dedicated funds and to remove the calculation of its growth factor from the Constitution? (Effective June 30, 2022) (Amends Article VII, Section 10(C)(1))

”

Ballot summary

The ballot summary was as follows:

“

Present Constitution provides that 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. Present Constitution provides that the expenditure limit for subsequent fiscal years after the 1991-1992 Fiscal Year shall not exceed the expenditure limit for the current fiscal year plus an amount equal to that limit times a positive growth factor. Present Constitution provides that the growth factor is the 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. Proposed Constitutional Amendment provides that the expenditure limit for subsequent fiscal years after the 1991-1992 Fiscal Year shall be as provided for by law. Proposed Constitutional Amendment provides that the legislature shall establish by law a procedure to determine the expenditure limit which shall not provide for growth in the expenditure limit of more than 5% in any year. Further provides that once the procedure is established by law, it shall not be changed except by a law enacted by 2/3 of the elected members of each house of the legislature.

”

Constitutional changes

See also: Article VII of the Louisiana Constitution

The measure would have amended section 10(C) of Article VII of the state constitution. The following underlined would have been added, and struck-through text was deleted:

Note: Use your mouse to scroll over the below text to see the full text.

Text of Section 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 be as provided for by law. 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 legislature shall establish by law a procedure to determine the expenditure limit. The procedure shall not provide for growth in the expenditure limit of more than five percent in any year. Once established by law, the procedure to determine the expenditure limit shall not be changed except by a law enacted by two-thirds of the elected members of each house of the legislature. (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).

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 12, and the FRE is 42. The word count for the ballot title is 40, and the estimated reading time is 10 seconds. The FKGL for the ballot summary is grade level 9, and the FRE is 49. The word count for the ballot summary is 207, and the estimated reading time is 55 seconds.

Support

Supporters

Officials

• State Representative Beau Beaullieu (R)

Organizations

• Americans for Tax Reform
• Pelican Institute for Public Policy

Arguments

• Morgan Wampold with the Pelican Institute for Public Policy: "This does not cut the state budget. It limits the growth of state spending."
• 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 4: "Louisiana government grows at either an unpredictable rate or too fast. Once a budget is increased, it is politically difficult to cut it. State government spends every tax dollar it gets and when times get tough politicians either resort to budget gimmicks or raising taxes. Cutting the budget is rarely considered seriously. Tightening the expenditure limit would attack this problem on the front end by slowing how much can be added to the budget. This amendment does not prevent the budget from growing, but likely reduces the maximum growth and brings predictability when compared to the current system. It is also more flexible because legislators will be able to adjust the growth formula with a two-thirds vote rather than having to amend the Constitution, which already is too filled with details. With a supermajority vote, the Legislature would be able to adjust the expenditure limit in cases of emergency, such as after a major hurricane. Since this would not affect the budget until fiscal year 2024, there is plenty of time to recover from our current economic crisis."
• Louisiana State Representative Beau Beaullieu (R): "Voting 'Yes' on Constitutional Amendment 4 means making our budget process more stable and predictable. It will do this by basing spending limits on indicators that actually impact budgeting, like the growth of our state’s economy. The benefits of Constitutional Amendment 4 aren’t just limited to a more fiscally responsible Louisiana government. By making budgeting more predictable and reliable, Amendment 4 will also make our state more inviting to job creators. Entrepreneurs and others seeking business investments in new states always take a close look at the government’s stability."

Opposition

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

Arguments

• Jan Moller with the Louisiana Budget Project: "The FY21 revenue forecast will be much bleaker than anyone expected two months ago. Moody’s Analytics recently predicted that Louisiana would experience a 25% reduction in state revenues during a severe recession, like the one we’re about to experience. From these economic depths, Louisiana can likely expect a period of rapid growth as the economy returns to normal. With this amendment, you would almost certainly need a two-thirds vote to pass a budget when growth picks up – essentially handing veto power to a minority of members in either house. Louisiana already has an expenditure limit. And it has a duly elected body, the state Legislature that has the power, each year, to decide how much money the state should spend, and where to allocate those resources. All it takes is a majority vote. By approving this amendment, you would be handing that all-important power of the purse to a minority of members – not just for yourselves, but for the people who come after you."
• 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 4: "This amendment does not ensure more efficient government; that will only come with changes to fiscal mandates and constraints. No protected funds or mandated spending increases would be eliminated. Therefore, this new system will make the Legislature’s options less flexible. This amendment seeks to treat the symptoms of budget growth without curing the root problems. State government is ultimately constrained by the amount of revenue it receives. If citizens want to shrink government, the proper remedy is to elect people who will do so. Limiting the growth will disproportionately affect those areas that are not protected by fiscal provisions in the Constitution, primarily higher education and healthcare. This may result in declining or slower growth in government service levels and fails to account for disproportionate growth of intensive government service populations such as the elderly and school-age children. It is not clear that the new formula uses the appropriate statistics or that averaging the four metrics makes sense. The state already has an expenditure limit that is working. This new limit would be too harsh and could hamper appropriate levels of government spending. The idea should be sent back to the Legislature for a more thorough vetting."

Campaign finance

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

See also: Campaign finance requirements for Louisiana ballot measures

	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

Ballotpedia did not identify any committees registered in support of or in opposition to the measure.

Background

History of expenditure limits in Louisiana

Louisiana's expenditure limit was first enacted in 1993 with the approval of Amendment 3. It amended the Louisiana Constitution to require that an expenditure limit be established for the next fiscal year during the first quarter of the calendar year of the present fiscal year. The expenditure limit for the next fiscal year equaled the present expenditure limit multiplied by the annual percentage rate of change of personal income from the three prior calendar years. Revenue in excess of the limit was deposited into a reserve fund.

In 1995, the state legislature exempted the following types of appropriations from the expenditure limit:

• federal funds,
• transfers from another state's agencies,
• severance taxes and royalties, and
• programs funded by the motor vehicle license tax.

The following chart includes the state expenditure limit and appropriations enacted by the legislature for fiscal years 2011-2020:

State spending and revenue limits

As of October 2020, 13 states had imposed spending and revenue limits on state budgets, eight states had only imposed revenue limits, 12 states had only imposed spending limits, and 17 states and Washington D.C. had imposed no limits.

Of the 25 states that imposed a state spending limit, 17 states included personal income growth as a factor for setting its spending limit. Eight states did not include personal income growth as a factor. Instead, the eight states used a combination of projected revenue, inflation, or population growth.

The following chart illustrates which states have adopted or not adopted limits:

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. Beau Beaullieu (R) introduced Amendment 4 as House Bill 464 on February 28, 2020. On May 22, 2020, the Louisiana House of Representatives approved the constitutional amendment in a vote of 101-0 with three Democratic representatives absent or not voting and one vacancy. The Senate passed the measure in a vote of 34-0 with five senators absent or not voting on June 1, 2020.

Vote in the Louisiana House of Representatives May 22, 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	101	0	3
Total percent	97.11%	0.00%	2.89%
Democrat	32	0	3
Republican	67	0	0
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	87.18%	0.00%	12.82%
Democrat	9	0	3
Republican	25	0	2

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 open at 7:00 a.m. If the polls close while a voter is in line, he or she will still be permitted to vote. Registration Check your voter registration status here. To vote in Louisiana, one must be a United States citizen who resides in the state and parish in which he or she registers. 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. 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 and agencies serving people with disabilities Military recruitment offices Automatic 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 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 does not require proof of citizenship for voter registration. 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 April 11, 2023. Click here to ensure you have the most current information. Louisiana driver's license Louisiana special identification card LA Wallet digital driver's license Other generally recognized picture identification card that contains the name and signature of the voter Voters who do not have accepted ID may vote by completing a voter identification affidavit. By law, voters who sign an affidavit may be challenged. 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
• 2020 legislative sessions

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 464 (2020)
• Nov. 3, 2020 Constitutional Amendments Summaries