Constitutional Amendment No. 2, explained – Report on Business Rouge Greater Baton Rouge

On March 29Constitutional Amendment No. 2– This would make some significant changes to state tax and budget policies.

The measure, which will amend Article VII of the State Constitution, was introduced as part of a package of bills supported by governor Jeff Landri and adopted by Louisiana’s legislation during the special session in November for tax reform.

Speaking with Press Club of Baton Rouge On Monday Jan Moller, CEO of Invest in LouisianaThey have outlined some of the most following elements of the change, although it quickly recognizes the complex complexity.

“This is really a rewriting of the largest section of the State Constitution,” he said. “I am not faceted when I say that I refute you to find five people in Louisiana, who can fully explain everything you will vote for in this amendment to the Constitution.”

Teacher Payment Raises – With Catch

The amendment will give $ 2,000 a constant increase in pay for teachers in public schools and an increase of $ 1,000 for school support staff. The increases replace the temporary scholarship that teachers have received in the last two years.

“If you are a teacher, you get the same amount of money next year as you get this year,” Moller said.

In order to finance pay increases, two constitutional protected education funds – the Fund for the Perfectation of Education and the Education Quality Fund – will be dissolved and their funds will be transferred to the Louisiana teachers’ pension system. This is something that, according to Moller, can influence a long list of state educational programs that move on.

Changes to government spending limitations

A new “government growth limit” will replace the current state limitation of the state, setting an artificial restriction on the ability of future legislators to acquire money for new programs.

“This means that it is practically even if Louisiana is somehow more revenue than expected if these revenue exceeds the limit of government growth, under no circumstances can it be included in additional programs,” said Moller S “It can only be spent on one -off items.”

A lower income tax limit

The maximum rate of state income tax will be constantly reduced from 4.75% to 3.75%, which makes it difficult for future legislators to shift the state dependence on sales tax revenue to income tax if they decide to do so S On January 1, the percentages of the state income tax were flattened to a rate of 3%.

Persons 65 years of age will be entitled to an additional standard deduction equal to the amount applicable to one person under State StatuteS

This is not an exhaustive review of the amendment of the Constitution No. 2. The bill that set it out – Bill 7 – is 115 pages long. Review it here.

Invest in Louisiana, known earlier as the budget project in Louisiana, is a non -party cerebral trust with a given purpose to change the change of economic prosperity for all Louisiananas.