(KTVE/KARD) — The third proposed amendment deals with the “Rainy Day” Fund. This fund money set aside for the state to use in case of an emergency. It was first put in place in the ’80s after the Oil and Gas market collapse.
Here is the official proposal:
Act 367 (HB 267, 2020 Regular Session by Representative Carter) – Proposed constitutional
amendment provides for the use of the fund for the state costs associated with a federally declared
disaster, not to exceed an amount equal to 1/3 of the fund, after consent of 2/3 of the elected members of each house of the legislature. Proposed constitutional amendment adds the deposit of an amount equivalent to the federal funds received by the state for the reimbursement of disaster costs, not to exceed the amount of the costs appropriated out of the fund. (Amends Const. Art. VII, §10.3(C)(3) and (4); Adds Const. Art. VII, §10.3(A)(5) and (C)(5))
Here’s what you will see on the ballot:
Do you support an amendment to allow for the use of the Budget Stabilization Fund, also known as the Rainy Day Fund, for state costs associated with a disaster declared by the federal government? (Amends Article VII, Section 10.3(C)(3) and (4); Adds Article VII, Section 10.3(A)(5) and (C)(5))
Currently, the Louisiana Constitution restricts the use of and deposits into the fund according to budget forecasts and deficits.
The present Constitution says money in the fund can only be used if there is a 2/3 majority vote from lawmakers in each house of the legislature. To read more about Rainy Day Funds and how they work click here.
This is what happens when a vote is cast:
A “yes” vote supports amending the state constitution to allow the Louisiana State Legislature, through a two-thirds vote in each chamber, to use up to one-third of the revenue in the Budget Stabilization Fund (also known as the Rainy Day Fund) to cover the state’s costs associated with a federally-declared disaster.
A “no” vote opposes amending the state constitution to allow the Louisiana State Legislature to use up to one-third of the revenue in the Budget Stabilization Fund to cover the state’s costs associated with a federally-declared disaster, thereby maintaining the restricted use of the fund according to budget forecasts and deficits.
Basically, you can vote to allow the state to use the Rainy Day fund to cover costs incurred by federal disasters, like the coronavirus pandemic or a destructive hurricane. The alternative is to continue using the fund as normal, based on budget forecasts and deficits.
Other items on the ballot:
- Amendment 1: No Right to Abortion in Constitution Amendment
- Amendment 2: Include Oil and Gas Value in Tax Assessment of Wells Amendment
- Amendment 3: Use of Budget Stabilization Fund for Declared Disasters Amendment
- Amendment 4: Expenditures Limit Growth Formula Amendment
- Amendment 5: Payments in Lieu of Property Taxes Option Amendment
- Amendment 6: Homestead Exemption Special Assessment Income Limit Amendment
- Amendment 7: Unclaimed Property Permanent Trust Fund Amendment
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