The Louisiana Federation of Teachers released the following statement on the organizations website last week in support of Amendment 2 on the March 29 ballot. 

Amendment 2: Overhaul of Budget and Tax Allowance and Limitations

The Louisiana Federation of Teachers (LFT) supports Constitutional Amendment 2 (CA2), which would ensure that one-time teacher and support staff stipends become a permanent part of their salary.  If CA2 fails to pass, teachers could face a $2,000 reduction in take-home pay and support staff could see a $1,000 reduction in take-home pay, further worsening Louisiana’s shortage of qualified educators.  LFT’s statewide surveys consistently show that increased compensation is the number one issue for teachers and support staff. Making the stipends a permanent part of educators’ base pay replaces what had previously been uncertain annual payments, giving educators more financial stability and predictability in their compensation. 

Louisiana already struggles with teacher vacancies, often filling teaching positions with unqualified individuals, some coming directly from fast-food jobs.  Despite receiving stipends in 2022, Louisiana’s ranking remains low at 13th out of 16 in the Southern Regional Education Board’s data, as other states provided higher salary increases on top of already better pay.

Teachers in Louisiana earn 28% less than other college-educated workers.  This is worse than both the SREB average of 23% and the national average of 26%.  When combined with skyrocketing costs for groceries, insurance, and healthcare (Louisiana educators have the second-highest monthly individual healthcare premiums in the Southern Region), it’s clear why the state cannot recruit or retain qualified educators.  Louisiana teacher pay has only reached the Southern Regional Average once, back in 2007, nearly two decades ago.

Constitutional Amendment 2 dissolves three education trust funds (nearly $2 billion) to pay down the state’s debt to the teacher retirement system and requires school districts to use their retirement payment savings to provide permanent salary increases for teachers and support staff.  The proposed elimination of education trust funds would remove a constitutionally protected revenue stream that currently provides $68 million annually for education programs, including $20 million for higher education.  Governor Landry and legislators have expressed their intent to continue funding for important education programs currently supported by these trust funds, including K-12 initiatives, early childhood education, student remediation, college research, and endowed professorships.

Constitutional Amendment 2 also completely overhauls Article VII of the Louisiana Constitution by rewriting the sections dealing with revenue collection, taxation, and budget rules, including lowering income tax caps and changing how trust funds operate.

If passed, the amendment would:

1. Lower the maximum allowable individual income tax rate cap from 4.75% to 3.75% and double the standard income tax deduction for citizens over 65.
2. Require a two-thirds legislative vote to create new tax exemptions and mandate that new sales tax exemptions apply to both state and local taxes.
3. Remove limits on severance tax revenue that local governments can receive from mineral production on their lands.
4. Establish new constraints on state general fund spending growth tied to population and inflation factors.
5. Merge two state savings accounts by transferring funds from the Revenue Stabilization Trust Fund to the Budget Stabilization Fund (rainy day fund) and eliminating the Revenue Stabilization Fund by 2027.
6. Remove several trust funds from the constitution, placing them instead in state law where they would be easier for legislators to modify.
7. Create incentives for parishes to reduce or eliminate property taxes on business inventory and make it more difficult to enact new property tax exemptions.

This comprehensive amendment represents a significant restructuring of Louisiana’s constitutional provisions governing fiscal matters, requiring only a single yes-or-no vote despite containing numerous complex changes.  LFT recognizes the concerns that many groups have raised over the proposed changes.  All voters should review the proposed changes carefully.

LFT has consistently advocated for paying Louisiana educators, both teachers and support staff, a wage that reflects what they are required and called to do—caring for and educating Louisiana’s children.  For this reason, we support CA 2.

Act 8 Replaces the One-Time Stipends

Louisiana House Bill No. 5 (Act 8)   Act 8 is the companion legislation to Constitutional Amendment 2.  It converts what was previously a one-time stipend into permanent part of teacher and support staff salaries.  The bill requires public school systems to provide permanent salary increases of at least $2,000 for certificated personnel and at least $1,000 for non-certificated personnel beginning with the 2025-2026 school year.

Companion legislation serves to support and implement a proposed constitutional amendment by providing the necessary statutory framework for its application if ratified by voters.  It clarifies complex provisions that may be too detailed for inclusion in the amendment itself and ensures alignment with existing state laws to maintain legal consistency.  This legislation is typically contingent upon voter approval of the amendment, ensuring that all changes are cohesive and functional within Louisiana’s legal system.

LFT was the only organization that worked to add amendments to Act 8 to ensure teachers and support staff received the permanent increase.  We worked closely with Rep. Bacala, Senator Edmonds, and Governor Landry to add measures guaranteeing these increases would become embedded in educators’ base compensation.

The only amendment we were not able to add was to include educators in charter schools that do not participate in the Teachers’ Retirement System of Louisiana.  However, Governor Landry has gone on record stating his intent for all educators to receive the permanent pay increase of $2,000 for teachers and $1,000 for support staff.

Key Protections for Teachers and Support Staff in Act 8:

• Permanent Salary Schedule Placement: Each public school system must place the salary increases into their permanent salary schedules
• Associated Retirement Costs Covered: The bill requires that associated retirement costs for the salary increases be included
• Funding Mechanism: The increases are funded through savings realized from reduced employer contribution rates
• MFP Supplementation: If a school system’s savings are insufficient, the remaining amount shall be provided through the minimum foundation program formula
• Non-Supplantation Clause: The salary increases cannot supplant or offset any salaries or salary supplements to which personnel were entitled prior to this legislation
• Leave Protection: Employees on approved leave remain eligible for the increases
• Compliance Reporting: School systems must certify and report implementation by December 31, 2025
• Superintendent Accountability: Superintendents of non-compliant school systems must appear before a hearing of the Senate and House Education Committees

These provisions closely mirror the Minimum Foundation Program (MFP), the constitutional funding mechanism that has been used to provide educator raises in the past.

Though LFT would have preferred that the permanent increase be provided in Level 4 of the MFP, current law does not allow teacher or school employee salaries to be reduced from the previous year.

Current Law RS 17:418  C(1) The amount of the annual salary paid to a teacher or other school employee in any school year shall not be reduced below the amount of such salary paid during the previous school year, nor shall the amount of the annual salary paid to such school personnel be reduced at any time during an academic year.