Executive Branch--Expenditure Freeze
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 "the 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;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 14 day of December, 2012.
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 December 14, 2012 meeting, indicating a projected deficit of One Hundred Sixty-Five Million Four Hundred Sixty-Four Thousand Six Hundred Eighty-Nine Dollars ($165,464,689) exists in the State General Fund for Fiscal Year 2012-2013, based in part on the revised official forecast of revenue available for appropriation adopted by the Revenue Estimating Conference on December 13, 2012, compared to total appropriations;
WHEREAS, once notified that a projected deficit exists, pursuant to Article VII, Section 10, of the Constitution of Louisiana, R.S. 39:75(C)(1)(a), and R.S. 39:75(C)(3), 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, issuing executive orders in the form of freeze orders prohibiting the expenditure of monies, 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 that the Governor call a special session of the Louisiana Legislature for that purpose;
WHEREAS, as authorized by R.S. 39:75(C)(1)(a), I have exercised my unilateral interim budget balancing powers to reduce the projected deficit by $127,835,080;
WHEREAS, after utilizing that authority, $37,629,609 remains of the projected deficit which must be eliminated, therefore I am issuing an executive order expenditure freeze pursuant to R. S. 39:75(C)(3) to eliminate the remaining amount of the projected deficit;
WHEREAS, this Executive Order and the Executive Order Expenditure Reduction may utilize all or a portion of the General Fund dollar savings objective specified in Executive Order BJ 2012-6.
WHEREAS, the Preamble Section 18(F) of Act 13 of the 2012 Regular Session of the Louisiana Legislature (hereafter "the Act") authorizes and directs the Commissioner of Administration to reduce the budget by $15,000,000 in State General Fund (hereafter “preamble reductions”);
WHEREAS, after a total of $3,221,158 in preamble reductions have already been implemented via vetoes within the Act, $11,778,842 remains of the preamble reductions which must be eliminated, therefore I am issuing this Executive Order to eliminate the remaining amount of the preamble reductions.
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 the Act, shall reduce or freeze expenditure of funds appropriated to the Unit from the State General Fund by the Act, in the amounts shown below:
Act 13 - General Operating Appropriations Act Expenditure Freeze:
Schedule 01-Executive Department State General Fund
01-102 Inspector General $ 35,490
01-126 Board of Tax Appeals $ 336
Schedule 06-Culture, Recreation and Tourism
06-264 Office of State Parks $ 3,067,866
Schedule 08-Corrections Services
08A-400 Corrections Administration $ 30,981
08A-401 C. Paul Phelps Correctional Center $ 2,803,780
Schedule 08-Youth Services
08C-403 Office of Juvenile Justice $ 962,458
Schedule 17-State Civil Service
17-563 State Police Commission $ 22,724
19D-699 Special School Districts $ 559,985
Schedule 20-Other Requirements
20-452 Local Housing of State Juvenile Offenders $ 340,733
20-931 LED Debt Service and State Commitments $ 17,893,132
20-XXX Funds $ 11,912,124
A. No later than December 28, 2012, the head of each Unit listed in Section 1 of this Order shall submit to the Commissioner a midyear budget reduction plan and preamble reduction plan (hereafter “mid-year budget reduction plans”, on the BA-7 form and questionnaire, which reflects the Unit’s proposed allocation of the expenditure freeze ordered in Section 1 of this Order, and a description of the methodology used to formulate the mid-year budget reduction plans.
B. In the event that positions of employment will be affected by the mid-year budget reduction plans, these positions should be included in your mid-year budget reduction plans.
C. No Unit shall implement the expenditure freeze mandated by Section 1 of this Order without the Commissioner’s prior written approval of the Unit’s mid-year budget reduction plans.
D. After the Commissioner has given approval of a Unit’s mid-year budget reduction plans, any change to the mid-year budget reduction plans requires prior written approval from the Commissioner.
SECTION 3: The Commissioner is authorized to develop additional guidelines as necessary to facilitate the administration of this Order, including the allocation for the preamble reductions.
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, 2013, unless amended, modified, terminated, or rescinded prior to that date.
Secretary of State