Proposes a full revision of Article VII of the Louisiana Constitution, which governs revenue and finance. The amendment consolidates, reorganizes, and updates a wide range of provisions related to taxation, budgeting, funds, and fiscal constraints.

Key Provisions:

1. Taxation 

- Requires a two-thirds vote of the legislature to create or increase any tax or fee or to repeal a tax exemption. 

- Prohibits courts from ordering the legislature or local governments to raise taxes. 

- Limits new sales tax exemptions (after January 1, 2027) to those that apply equally to state and local taxes. 

- Codifies exclusions for groceries, prescription drugs, and residential utilities. 

- Prohibits state and local ad valorem tax on prescription drugs.

2. Income and Severance Taxes 

- Caps the maximum individual income tax rate at 4.75%. 

- Grants taxpayers aged 65 and older an additional standard deduction equal to the amount allowed for a single filer. 

- Updates severance tax allocations to parishes and eliminates outdated caps, allowing future changes by statute.

3. Fund Structure Reforms 

- Creates two new classes of state funds: Permanent Trust Funds and Program Funds, with constitutional rules for investment, withdrawals, and legislative changes. 

- Repeals several outdated or redundant constitutionally protected funds but reclassifies others (e.g., Louisiana Fund, Oil Spill Fund, Artificial Reef Fund) as program funds to retain their structure and purpose under statute. 

- Revises governance and reporting requirements for existing trust funds such as the Louisiana Education Quality Trust Fund, Millennium Trust, and Unclaimed Property Permanent Trust Fund.

4. Budgetary Limits and Reforms 

- Establishes a new “Government Growth Limit” on recurring State General Fund (Direct) spending, beginning FY 2027-2028. Amounts above this limit may only be used for nonrecurring expenses. Prohibits a vote to bust the spending cap unless the prior THREE YEARS of growth were 2 ½ percent or LESS.

- Retains the existing expenditure limit and rules on use of nonrecurring revenue (e.g., debt repayment, capital outlay, coastal protection). 

- Maintains required state funding for local law enforcement and fire protection salary supplements.

5. Revenue Stabilization Fund Changes 

- Phases out mineral revenue deposits into the Budget Stabilization Fund. 

- Increases the cap on the fund’s balance from 4% to 7.5% of prior-year state revenue. 

- Preserves use of the fund for shortfalls, deficits, and disaster response with a two-thirds vote of the legislature.

6. Local Inventory Tax Option 

- Prohibits the legislature from mandating that local governments exempt business inventory from property tax. 

- Authorizes parishes to exempt business inventory locally, and guarantees a one-time state payment from the Revenue Stabilization Fund to those parishes based on a formula set in law. 

- Ensures local governments and other taxpayers are held harmless for lost revenue due to phase-in or exemption.

7. Property Tax Modernization 

 Preserves existing exemptions including the homestead exemption, special assessment levels for seniors and veterans, and exemptions for nonprofits, farmers, and others. 

- Modernizes rules for millage rollbacks and reassessments. 

- Adds new transparency requirements for tax sales and property tax collections.

8. Technical and Structural Updates 

- Clarifies the powers of the Revenue Estimating Conference, Interim Emergency Board, and State Bond Commission. 

- Retains protections for existing taxes and bonded obligations.

Effective Date: 

If approved by voters on November 3, 2026, most provisions take effect in FY 2026-2027, with certain limits (like the Government Growth Limit) beginning in FY 2027-2028.

This left in place the current language on churches and non-profits. Mandated teacher pay raise in exchange for UAL payment reductions in HB466 with the constitutional amendment for teacher pay raise separated out in HB473.

Recommendation: 

Due to its scope, voter education will be critical ahead of the November 2026 election.

HOUSE floor amendment technical

Implications: Reduces the state’s retirement debt by liquidating education-related trust funds and using those assets to pay down liabilities in the Teachers’ Retirement System of Louisiana, lowering future required contributions in part due to reductions in interest due to early payoff of balances resulting in reduction of payments to the fund including those required at the parish level.

CONSTITUTIONAL AMENDMENT 

Eliminates three existing education-related funds and uses their assets toward the unfunded accrued liability (UAL) of the Teachers’ Retirement System of Louisiana.

Key Provisions: 

1. Fund Eliminations: 

- Repeals the Louisiana Education Quality Trust Fund (LEQTF), the Louisiana Quality Education Support Fund, and the Education Excellence Fund (EEF). 

- These funds currently support some K-12 and higher education programs.

2. Transfer of Funds: 

- By April 1, 2027, the state treasurer must transfer the liquidated fair market value of the three repealed funds to TRSL. 

- TRSL must apply the funds to the oldest existing positive amortization bases first to reduce UAL.

3. Overcollections Fund Use: 

- The Department of Education, BESE, and the Board of Regents will certify remaining balances from repealed funds. 

- These amounts will be transferred to the Overcollections Fund and used without appropriation for approved instructional purposes such as early childhood education, remedial support, and academic intervention. 

- Prohibited uses include building maintenance, capital projects, and salary increases.

4. Transition Measures: 

- Balances needed for FY 2026-2027 appropriations will be held back. 

- Unspent balances in the repealed funds will be transferred to the general fund on July 1, 2027. 

- Starting in 2027, revenue previously dedicated to the repealed funds will go to the state general fund unless redirected by law.

5. TOPS and Health Excellence Funds: 

- These funds remain but receive a larger share of investment earnings (increased from one-third to one-half). 

- All other rules and limitations remain in effect.

6. Effective Date: 

- January 1, 2027

7. Ballot Language: 

- Voters will decide in the November 3, 2026, election whether to approve the repeal of the three education funds and redirect their assets to reduce the TRSL UAL.

HOUSE APPROPS committee amendments [LINK] replace a fixed wage increase with a rule-based determination, define and use a "regional average wage" to set eligibility criteria, clarify that companies can't simultaneously receive benefits from the Quality Jobs Program, and establish a capped, tiered formula for annual fund deposits from corporate taxes.

HOUSE commerce committee amendments [LINK] make technical corrections and clarify eligibility and funding criteria. They specify wage standards for new jobs, clarify that businesses retaining (rather than employing) a minimum number of jobs qualify, prohibit simultaneous participation in the Quality Jobs Program, and ensure deposits into the High Impact Job Fund include both corporate income and franchise tax collections.

Establishes the High Impact Jobs Program within Louisiana Economic Development (LED) to incentivize high-wage job creation and retention.

Key Provisions:

Creates a reimbursable grant program for companies that:

 - Pay wages above parish averages

 - Offer basic health benefits

 - Hire full-time Louisiana employees

Grant amounts:

 - 8% of annual wages for jobs in distressed areas paying ≥110% of parish average wage

 - 18% for jobs paying ≥125% but <150% of parish average wage

 - 22% for jobs paying ≥150% of parish average wage

 - Maximum of $200,000 per year per job

Grants also available to retain highly skilled workers with advanced degrees

Ineligible sectors include gaming, retail, pro sports, construction, and local utilities

Companies cannot receive other LED incentives for the same jobs or expenditures

Establishes the High Impact Job Fund, funded by up to $25 million per year from corporate income tax collections

Program ends for new applicants after July 1, 2035

Effective date: July 1, 2025

HOUSE committee amendments [LINK] expand the state treasurer’s investment authority for multiple trust funds (including the Millennium Trust, UCP Permanent Trust, Medicaid Trust for the Elderly, and wildlife refuge funds) to allow use of repurchase agreements and securities lending to generate passive income. They authorize technical changes by the Louisiana State Law Institute and adjust statutory citations. The amendments also broaden fund investment options by aligning them with those permitted for the Millennium Trust.

Revises laws governing several Louisiana state funds, including the Louisiana Education Quality Trust Fund (LEQTF), the Millennium Trust, and the Unclaimed Property Permanent Trust Fund. It restructures the allocation, investment, and use of these funds and repeals the Education Excellence Fund by 2027, contingent on voter approval of a constitutional amendment (HB473 UAL payoff and permanent teacher pay raises).

Key Provisions:

- Repeals most statutory provisions governing the LEQTF and Louisiana Quality Education Support Fund but retains current appropriation mechanisms until July 1, 2027.

- Eliminates the Education Excellence Fund and reallocates its earnings to the Health Excellence Fund and TOPS Fund (each receiving 50% of earnings from Millennium Trust investments).

- Revises the investment options for the Millennium Trust and Unclaimed Property Permanent Trust Fund, allowing broader investment authority and aligning both with LEQTF investment standards.

- Removes prior-year appropriation limitations for the Millennium Trust subfunds and repeals the requirement for reporting Education Excellence Fund performance to the superintendent of education.

- Changes are contingent upon the passage of a constitutional amendment at a statewide election.

Revises state treasury fund laws to modify how funds are deposited, used, reported, and capped. Eliminates or consolidates some funds and redefines others, aligned with a proposed constitutional amendment.

Key Provisions:

- Updates the Oilfield Site Restoration Fund and Oil Spill Contingency Fund to clarify that unspent funds remain in the fund, must be invested like general fund money, and require quarterly balance reports from the treasurer.

- Raises the cap on the Budget Stabilization Fund from 4% to 7.5% of prior-year state revenue receipts and updates how mineral revenues and excess funds are deposited.

- Repeals mineral revenue dedications to several funds, including those related to retirement systems and infrastructure, consolidating the flow into the Budget Stabilization Fund and the Coastal Protection and Restoration Fund.

- Makes technical changes to the Millennium Trust and its subfunds (Health Excellence, Education Excellence, and TOPS), ensuring continued deposits from tobacco settlement revenues and adjusting investment language.

- Repeals the Revenue Stabilization Trust Fund effective July 1, 2029, transferring its balance to the state general fund as nonrecurring revenue.

- Requires $25 million in mineral revenues (annually adjusted for inflation) to be deposited into the Coastal Protection and Restoration Fund and removes the current mineral revenue cap on the fund.

- Expands allowed uses of the Artificial Reef Development Fund to include reef siting and construction and requires quarterly reports to the Department of Wildlife and Fisheries.

- Repeals the Mineral Revenue Audit and Settlement Fund and transfers its balance to the general fund.

- Makes all changes contingent on voter approval of a related constitutional amendment proposed in a separate bill from the 2025 session.

HOUSE floor amendments technical

HOUSE committee amendments [LINK] expand the bill to include a statewide individual income tax rate reduction from 3.00% to 2.75%, effective January 1, 2027, and make both the new senior deduction and the rate cut contingent on voter approval of a constitutional amendment in HB472. The bill’s effective date is pushed to 2027 and now applies more broadly to all individual taxpayers, not just those age 65 and older.

Authorizes an individual income tax deduction for Louisiana residents aged 65 and older, equal to the standard deduction for single filers.

Key Provisions:

• Creates a new deduction from tax table income for taxpayers age 65 and older.
• Deduction amount equals the standard deduction for single filers ($12,500, indexed for inflation after 2026).
• This deduction is in addition to the regular standard deduction.
• Taxpayers must retain records verifying eligibility and provide them to the Department of Revenue upon request.
• Applies to taxable periods beginning on or after January 1, 2026.
• Department of Revenue may adopt rules to implement the deduction.

This was part of the package last year to combine funds for the purpose of freeing up money to pay down debt.

HOUSE floor bureau amendments technical

HOUSE floor amendment set 2433 [LINK] clarify and adjust references related to the Louisiana Constitution sections being changed. Specifically, they correct language to properly indicate that a new section (10.3(D)) is being "added" rather than "enacted," and they remove an unnecessary line for clarity. The amendments also clearly outline the exact constitutional sections amended, added, and repealed, ensuring accuracy and consistency in referencing.

HOUSE committee amendment 2290 technical.

HOUSE committee amendment set 2015 [LINK] adjusts provisions related to the dedication and distribution of mineral revenues. Specifically, they repeal certain existing dedications, redefine how revenues are deposited into and credited to the Mineral Revenue Audit and Settlement Fund, and clarify that funds in this account will count toward the Coastal Protection and Restoration Fund, but not toward the Budget Stabilization Fund. The amendments simplify revenue allocations by removing some previously required distributions and clarify constitutional references to streamline the management of mineral revenue funds.

Constitutional amendment to eliminate the Revenue Stabilization Trust Fund and redirect certain state revenues to the Budget Stabilization Fund (Rainy Day Fund), while raising the cap on its allowable balance.

Key Provisions:

• Repeals Article VII, §10.15, eliminating the Revenue Stabilization Trust Fund.
• Redirects mineral revenue previously earmarked for the Revenue Stabilization Trust Fund into the Budget Stabilization Fund through FY 2026–2027.
• Beginning FY 2027–2028, mineral revenue deposits into the Rainy Day Fund cease; other existing deposits remain (e.g., excess general fund and 25% of nonrecurring revenue).
• Raises the cap on the Rainy Day Fund from 4% to 7.5% of prior-year total state revenue receipts.
• Submits the proposed amendment to voters on November 3, 2026.

This is part of the effort to consolidate funds, freeing up dedicated revenue to pay down debt.

Repeals the Revenue Stabilization Trust Fund and redirects certain state revenues to the Budget Stabilization Fund ("Rainy Day Fund"). Simplifies mineral revenue dedications and revises conditions for fund deposits and usage.

KEY PROVISIONS:

• Eliminates the Revenue Stabilization Trust Fund, transferring its balance into the state general fund by July 1, 2029.
• Increases the Budget Stabilization Fund cap from 4% to 7.5% of total state revenues.
• Removes dedicated deposits of mineral revenues into multiple special funds, simplifying allocations primarily to the Budget Stabilization Fund.
• Directs surplus corporate income taxes (above $600 million) and specified mineral revenues into the Revenue Stabilization Fund temporarily, then into the Budget Stabilization Fund.
• Allows use of these funds if corporate income taxes fall below $800 million annually.
• Contingent on voter approval of constitutional amendments proposed by HB 678 and HB 366 of 2025.