Jindal signs order to reduce state spending

The following is the text of the Executive Order signed on Friday, October 22, 2010 by Louisiana Governor Bobby Jindal:

BATON ROUGE – Today, Governor Bobby Jindal issued an executive order reducing the expenditure of funds in state government.


WHEREAS, pursuant to R.S. 39:75(A)(1), the Division of Administration is directed to submit a monthly budget status report to the Joint Legislative Committee on the Budget (hereafter "Committee") indicating the balance of the budget for the state general fund and dedicated funds by comparing the official forecast for these funds to the total authorized appropriations from each fund; once approved by the Committee, the most recent budget status report becomes the official budget status of the state;

WHEREAS, pursuant to R.S. 39:75(A)(2), the budget status report presented at the first meeting of the Joint Legislative Committee on the Budget after October fifteenth of any fiscal year shall reflect the balance in any fund for the previous fiscal year and said budget status report indicates that the previous Fiscal Year, Fiscal Year 2009-2010, ended with a projected deficit of $106,832,546;

WHEREAS, Article VII Section 10 (G) of the Constitution of Louisiana and R.S. 39:76 state that if a deficit exists in any fund at the end of a fiscal year, that deficit shall be eliminated no later than the end of the next fiscal year;

WHEREAS, if the most recently approved budget status report indicates that the total appropriation from any fund will exceed the official forecast for that fund, R.S. 39:75(B) requires the Committee to immediately notify the governor that a projected deficit exists for that fund;

WHEREAS, the Committee notified the governor that it approved a budget status report at its October 22, 2010 meeting, indicating a projected deficit of one hundred six million seven hundred thirty-two thousand five hundred forty-six dollars ($106,732,546) exists in the state general fund for Fiscal Year 2010-2011, based on the official forecast of revenue available for appropriation adopted by the Revenue Estimating Conference on June 21, 2010, compared to total appropriations;

WHEREAS, once notified that a projected deficit exists, pursuant to Article VII, Section 10 of the Constitution of Louisiana and R.S. 39:75(C)(1)(a), the governor has interim budget balancing powers to adjust the budget, including the authority to reduce appropriations for the executive branch of government for any program that is appropriated from a fund that is in a deficit posture, not exceeding three percent (3%) in the aggregate of  the total appropriations for each budget unit for the fiscal year, and if the governor does not make necessary adjustments in the appropriations to eliminate the projected deficit within  thirty (30) days of the determination of the projected deficit in a fund, R.S. 39:75(D) mandates the governor call a special session of the legislature for that purpose;

WHEREAS, as authorized by R.S. 39:75(C)(1)(a), I am exercising my unilateral interim budget balancing powers to reduce the projected deficit by $106,732,546, resulting in a 1.38% overall reduction in total state general fund and a 0.35% reduction in the total appropriation for the state;

WHEREAS, as authorized by R.S. 39:75(C)(3),  my executive order may utilize all or a portion of the general fund dollar savings objective specified in Executive Order BJ 2010-12.

NOW THEREFORE, I, Bobby Jindal, Governor of the state of Louisiana, by virtue of the authority vested by the Constitution and laws of the state of Louisiana, do hereby order and direct as follows:

SECTION 1: The following departments, agencies, and/or budget units (hereafter "Unit" and/or "Units") of the executive branch of the state of Louisiana, as described in and/or funded by appropriations through Acts 11 and 41 of the 2010 Regular Session of the Louisiana Legislature (hereafter "the Acts"), shall reduce expenditure of funds appropriated to the Unit from the state general fund by the Acts, in the amounts shown below:

State General Fund

Schedule 01-Executive Department                                              $6,094,311   

Schedule 03-Veterans Affairs                                                        $350,495   

Schedule 04-Elected Officials

04-139 Secretary of State                                                             $2,430,964

04-141 Office of Attorney General                                                 $350,000

04-146 Lieutenant Governor                                                         $93,129

04-160 Agriculture and Forestry                                                    $1,646,031

Schedule 05-Economic Development                                             $1,195,191

Schedule 06-Culture, Recreation and Tourism                               $1,350,618

Schedule 08A-Corrections Services                                                $5,071,813   

Schedule 08B-Public Safety Services                                              $3,485,973

Schedule 08C-Juvenile Justice                                                        $4,564,339

Schedule 09-Health and Hospitals                                                  $20,804,466

Schedule 10-Children and Family Services                                      $11,711,646

Schedule 14-Louisiana Workforce Commission                               $275,000

Schedule 17-Civil Service

17-562 Ethics Administration                                                          $115,216

17-563 State Police Commission                                                    $17,998

17-564 Division of Administrative Law                                           $19,645

Schedule 19A-Higher Education                                                     $34,745,030

Schedule 19B-Special Schools and Commissions

19-657 Louisiana School for Math, Science, & the Arts                  $134,066

19-662 Louisiana Educational Television Authority                        $100,000

19-666 State Board of Elementary & Secondary Education           $72,040

19-673 New Orleans Center for the Creative Arts                         $155,875

Schedule 19D-Education                                                                $6,320,266

Schedule 19E-LA Health Care Services Division                             $5,307,534

Schedule 20-Other Requirements

20-452 Local Housing of State Juvenile Offenders                         $201,430

20-933 Governor's Conferences and Interstate Compacts            $15,778

20-941 Agriculture and Forestry—Pass Through Funds                  $102,692

Schedule 21-Ancillary

21-804 Office of Risk Management                                                  $1,000


A. No later than November 5, 2010, the head of each Unit listed in Section 1 of this Order shall submit to the commissioner of administration (hereafter "commissioner") a mid-year budget reduction plan, on the BA-7 form and questionnaire, which reflects the Unit's proposed allocation of the expenditure reduction ordered in Section 1 of this Order (hereafter "mid-year budget reduction plan"), and a description of the methodology used to formulate the mid-year budget reduction plan.  The heads of each department may exercise discretion and reallocate the aggregate reduction within the department to maximize recurring savings to the state fisc for future fiscal years, while remaining in compliance with R.S. 39:75(C)(1)(a) by ensuring that no reduction to any budget unit exceeds 3% of the total appropriation of that budget unit.

B. In the event that positions of employment will be affected by the mid-year budget reduction these positions should be included in your mid-year budget reduction plan.

C. No Unit shall implement the expenditure reduction mandated by Section 1 of this Order without the commissioner's prior written approval of the Unit's mid-year budget reduction plan.

D. After the commissioner has given approval of a Unit's mid-year budget reduction plan, any change to the mid-year budget reduction plan requires prior written approval from the commissioner.

SECTION 3: The commissioner of administration is authorized to develop additional guidelines as necessary to facilitate the administration of this Order. 

SECTION 4: All departments, commissions, boards, offices, entities, agencies, and officers of the state of Louisiana, or any political subdivision thereof, are authorized and directed to cooperate in the implementation of the provisions of this Order.

SECTION 5: This Order is effective upon signature and shall remain in effect through June 30, 2011, unless amended, modified, terminated, or rescinded prior to that date.

IN WITNESS WHEREOF, I have set my hand officially and caused to be affixed the Great Seal of Louisiana, at the Capitol, in the city of Baton Rouge, on this 22nd day of October, 2010.