New Orleans Chamber of Commerce Endorses the Revenue Stabilization Trust FundOctober 24, 2016New Orleans Chamber of Commerce Endorses
the Revenue Stabilization Trust Fund
New Orleans, LA (October 24, 2016) – The New Orleans Chamber of Commerce Board of Directors has voted to endorse Constitutional Amendment No. 5, otherwise known as the Revenue Stabilization Trust Fund. The decision was made in a unanimous vote at it’s recent board meeting on Thursday, October 20 at which the board was addressed by State Representative Walter “Walt” J. Leger III.
“The problem is every year we spend every dollar that we get and until we figure out a way to change that behavior, we’re going to continue...to find ourselves in a cycle of ups and downs” Leger said.
In his address to the board, Leger outlined details of how the amendment will correct Louisiana’s volatile economic cycles without raising taxes and create a way for legislators to make predictable investments. He also discussed specific caps set for revenue streams in the state of Louisiana with $660 million for mineral revenues and $600 million for corporate tax revenues.
The interest generated each year from the Trust Fund will be deposited back into the State General Fund for appropriation by the state legislature. Once the Fund reaches $5 billion, the Legislature is authorized to use up to 10% of the Fund to work on projects that are often neglected such as issues related to the transportation infrastructure and construction projects. Additionally, 30% of the Fund deposits will go to pay down currently unfunded state retirement debt.
“This is a way of addressing our challenges without being forced to look at taxes every time we have some type of economic downturn,” said Leger.
While this concept is new to the state of Louisiana, seven other states have implemented similar trust funds that have resulted in stability and prosperity. These states include: Alaska, Montana, North Dakota, New Mexico, Utah, West Virginia and Wyoming.
“As an entity that supports business and economic prosperity, the New Orleans Chamber Board of Directors has made the decision to support this amendment. We believe that is important to implement a financial structure for our state that will lead to long-term stability and growth,” said Gregory Ben Johnson, President and CEO of the New Orleans Chamber of Commerce.
The decision surrounding Amendment No. 5 will be left to a public vote in the general election on November 8. For more information on the Revenue Stabilization Trust Fund, visit: http://www.waltleger.com/news/walt-s-blog/108-revenue-stabilization-trust-fund.
The New Orleans Chamber of Commerce was founded in 2004 to provide members with the opportunity to build mutually beneficial partnerships within the City of New Orleans. Currently the Chamber has over 1,200 members and also has the lowest dues in the region. Its mission is to provide the opportunities and resources that will enable businesses to prosper through networking, education and advocacy.###Contact:Ashley Doubleday, Director of Communications and Marketingadoubleday@neworleanschamber.org, (504) 799-4260