JBE 16-04

Executive Branch – Expenditure Reduction

WHEREAS, pursuant to La. 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;

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, La. R.S. 39:75(B) requires the Committee to immediately notify the Governor that a projected deficit exists for that fund;

WHEREAS, on February 13, 2016, the Committee notified the Governor that it approved a budget status report at its February 13, 2016, meeting, indicating that a projected deficit of $570,100,000 exists in the State General Fund for Fiscal Year 2015-2016, based on the revised official forecast of revenue available for appropriation adopted by the Revenue Estimating Conference on February 10, 2016, compared to total appropriations;

WHEREAS, once notified that a projected deficit exists, pursuant to Article VII, Section 10, of the Constitution of Louisiana and La. 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 up to 5% of the State General Fund allocations or appropriations, or $445,640,766, 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, La. R.S. 39:75(D) mandates that the Governor call a special session of the Louisiana Legislature for that purpose;

WHEREAS, on November 20, 2015, the Committee notified the Governor of a projected deficit of $487,277,518 in the current fiscal year;

WHEREAS, the Governor and the Committee reduced the State General Fund appropriations by $352,665,361 under Article VII, Section 10, of the Constitution of Louisiana, leaving a possible State General Fund reduction of $92,975,405 under this authority for the Governor and the Committee;

WHEREAS, since the state has less than five months remaining in the current fiscal year and State General Fund dollars are now limited, I have reviewed and elected to cut, by this order, 10% of the remaining three-fifths of the State General Fund available for further reduction, while protecting higher education and Medicaid from further State General Fund reductions;

WHEREAS, as authorized by Article VII, Section 10, of the Constitution of Louisiana, and La. R.S. 39:75(C)(1)(a), I am exercising my unilateral interim budget balancing powers to reduce the projected deficit by $21,734,240;

WHEREAS, one-third of the Budget Stabilization Fund as determined by La. R.S. 39:95 is $156,624,004, and $28,164,341 of that amount was authorized by the legislature to help resolve the deficit declared on November 20, 2015;

WHEREAS, as authorized by La. R.S. 39:94(C)(2) and La. R.S. 39:87(1), I am requesting the legislature to approve the use of the Budget Stabilization Fund in the amount of $128,459,663 which is the remainder of the one-third balance of the fund at the beginning of the current fiscal year in accordance with La. R.S. 39:95;

WHEREAS, after utilizing those authorities, $419,906,097 remains of the projected deficit which must be eliminated, therefore I direct the Commissioner of Administration to present to the Committee for its approval a plan to further reduce the projected deficit pursuant to La. R. S. 39:75(C), including $5,630,023 under Article VII, Section 10, of the Constitution of Louisiana;

WHEREAS, the remaining $65,611,142 reductions authorized by Article VII, Section 10, of the Constitution of Louisiana by the Governor and the Committee would be taken by higher education and Medicaid after consideration by the Legislature during the First Extraordinary Session;

WHEREAS, I will present to the Legislature in the 2016 First Extraordinary Session additional reductions, revenues, and statutory changes to eliminate the remaining amount of the deficit; and

WHEREAS, this Executive Order and the plan to be submitted to the Committee and the Legislature may utilize all or a portion of the General Fund dollar savings objective specified in Executive Order JBE 2016-03.

NOW THEREFORE, I, JOHN BEL EDWARDS, 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 16, 26, and 46 of the 2015 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, and associated positions, in the amounts shown below:

Schedule 01-Executive Department

State General Fund

01-100 Executive Office

$       138,812

01-102 Office of the State Inspector General

$         52,251

01-103 Mental Health Advocacy Service

$         64,196

01-106 Louisiana Tax Commission

$         72,395 

01-107 Division of Administration

$       478,883

01-111 Governor’s Office of Homeland Security and Emergency Preparedness

$         34,002

01-112 Department of Military Affairs

$       535,430

01-129 Louisiana Commission on Law Enforcement

$       125,235

01-133 Office of Elderly Affairs

$       344,533

Schedule 04-Elected Officials

04-139 Secretary of State

$       768,568

04-146 Lieutenant Governor

$         13,051

04-160 Agriculture and Forestry

$       111,000

Schedule 05-Economic Development

05-251 Office of the Secretary

$       190,457

05-252 Office of Business Development

$       157,528

Schedule 06-Culture, Recreation and Tourism

06-261 Office of the Secretary

$         77,458

06-262 Office of the State Library of Louisiana

$         26,002

06-263 Office of State Museum

$         54,638

06-264 Office of State Parks

$       545,720

06-265 Office of Cultural Development

$           2,762

06-267 Office of Tourism

$         23,850

Schedule 08-Public Safety and Corrections – Youth Services

08-403 Office of Juvenile Justice

$    2,366,971

Schedule 09-Health and Hospitals

 09-300 Jefferson Parish Human Services Authority

$       111,648

 09-301 Florida Parishes Human Services Authority

$       202,620

09-302 Capital Area Human Services District

$       270,352

09-303 Developmental Disabilities Council

$         13,751

09-304 Metropolitan Human Services District

$       494,323

09-307 Office of the Secretary

$       614,798

09-309 South Central Louisiana Human Services Authority

$       369,007

09-310 Northeast Delta Human Services Authority

$       175,081

09-320 Office of Aging and Adult Services

$       131,966

09-324 Louisiana Emergency Response Network

$         44,285

09-325 Acadiana Area Human Services District

$       269,039

09-326 Office of Public Health

$       715,009

09-330 Office of Behavioral Health

$       412,749

09-340 Office of Citizens with Developmental Disabilities

$       201,445

09-375 Imperial Calcasieu Human Services Authority

$       189,777

09-376 Central Louisiana Human Services District

$       235,906

09-377 Northwest Louisiana Human Services District

$       136,605

Schedule 10-Department of Children and Family Services

10-360 Office of Children and Family Services

$    4,137,390

Schedule 11-Natural Resources

11-434 Office of Mineral Resources

$         39,492

Schedule 13 – Environmental Quality

13-850 Office of the Secretary

$         18,301

Schedule 14-Louisiana Workforce Commission

14-474 Workforce Support and Training

$           3,967

Schedule 17-Civil Service

17-562 Ethics Administration

$         86,852

17-563 State Police Commission

$           9,259

17-565 Board of Tax Appeals

$           5,251

Schedule 19-Special Schools and Commissions

19B-653 Louisiana Schools for the Deaf and Visually Impaired

$       566,770

19B-657 Louisiana School for Math, Science, and the Arts

$       151,469

19B-662 Louisiana Educational Television Authority

$         31,345

19B-666 Board of Elementary and Secondary Education

$         15,701

19B-673 New Orleans Center for the Creative Arts

$       128,925

Schedule 19-Department of Education

19D-678 State Activities

$       945,439

19D-681 Subgrantee Assistance

$    2,052,790

19D-682 Recovery School District

$         37,189

19D-697 Nonpublic Educational Assistance

$       788,821

19D-699 Special School District

$       259,468

Schedule 19E-Louisiana State University Health Science Center

19E-610 Louisiana Health Care Services Division

$    1,116,282

Schedule 20-Other Requirements

20-906 District Attorneys and Assistant District Attorneys

$       523,864

20-933 Governor’s Conferences and Interstate Compacts

$           2,778

20-941 Agriculture and Forestry – Pass Through Funds

$         40,784


SECTION 2:             

A. No later than February 29, 2016, 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. 

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 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, 2016, 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 14th day of February, 2016.


John Bel Edwards

Tom Schedler
Secretary of State