Five Yes and Two No

By David Jacobs The Center Square

 Louisiana voters rejected two of the seven constitutional amendments that were on Tuesday’s ballot.

Amendment 4  sought to limit the potential growth of state spending. Amendment 5 would have created a new tax break for local governments to offer manufacturers. Both were voted down.

Current law includes a spending limit that compounds each year and seldom comes into play during the budget process. Amendment 4 would have capped annual spending growth at 5 percent and added other factors meant to make the limit more restrictive.

The changes would not have cut the state’s budget but might have made it more difficult for lawmakers to increase state government spending. Lawmakers would have been able to lift the cap with a two-thirds vote in both chambers, so if a majority of legislators wanted to spend enough to exceed the cap, a minority would have been able to block that effort or demand concessions in exchange for their votes.

Amendment 5 drew the most opposition of any amendment on the ballot. It would have created a new process for local taxing authorities to negotiate deals with a manufacturer to make payments in lieu of property taxes (PILOTs) the company otherwise would owe. In theory, local governments could let the company pay less in property taxes as an incentive to move to their jurisdiction or expand there, while using the up-front money for infrastructure or other immediate needs.

Supporters said the new form of PILOT could be an economic development tool for local governments that is more flexible than the state’s Industrial Tax Exemption Program. Critics, such as the left-leaning group Together Louisiana, saw it as yet another avenue for corporate tax breaks that shift the tax burden onto regular citizens.

Voters approved the other five amendments.

Also on Tuesday, voters in most Louisiana parishes approved legalizing sports betting in their areas, though it won’t actually be legal anywhere in the state for a while. Lawmakers next year will have to set up the regulations and tax rates.

Here is how Red River voters decided on the seven amendments.  They agreed with the rest of the state in defeating amendments number 4 and 5.  However Red River went against the statewide trend and voted down amendments 2 and 3.  Red River voters approved of authorizing sports wagering.