BJ 12-24

Executive Branch--Expenditure Reduction

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;
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 am exercising 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 Freeze may utilize all or a portion of the General Fund dollar savings objective specified in Executive Order BJ 2012-6.
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 Act 13 of the 2012 Regular Session of the Louisiana Legislature (hereafter "the Act"), shall reduce 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:
Schedule 01-Executive Department State General Fund
01-102 Inspector General $ 54,859
01-103 Mental Health Advocacy Service $ 40,000
01-107 Division of Administration $ 18,898,785
01-111 Governor’s Office of Homeland Security $ 381,054
01-112 Military Affairs $ 1,082,099
01-126 Board of Tax Appeals $ 17,125
01-129 Louisiana Commission on Law Enforcement $ 331,563
Schedule 03-Veterans Affairs
03-130 Veteran's Affairs $ 596,943
Schedule 04-Elected Officials
04-139 Secretary of State $ 1,000,000
04-160 Agriculture and Forestry $ 102,412
Schedule 05-Economic Development
05-251 Office of the Secretary $ 430,199
Schedule 06-Culture, Recreation and Tourism
06-264 Office of State Parks $ 932,134
Schedule 08-Corrections Services
08A-400          Corrections Administration $ 1,169,019
08A-401          C. Paul Phelps Correctional Center $ 585,496
08A-402          Louisiana State Penitentiary $ 1,777,086
08A-405          Avoyelles Correctional Center $ 508,439
08A-406          Louisiana Correctional Institute for Women $ 79,112
08A-409          Dixon Correctional Institute $ 48,510
08A-413          Elayn Hunt Correctional Center $ 353,571
08A-414          David Wade Correctional Center $ 718,873
08A-412          B. B. Sixty Rayburn Correctional Center $ 139,409
08A-415          Adult Probation and Parole $ 1,200,000
Schedule 08-Youth Services
08C-403          Office of Juvenile Justice $ 3,637,542
Schedule 09-Health and Hospitals
09-300 Jefferson Parish Human Services Authority $ 206,799
09-301 Florida Parishes Human Services Authority $ 141,461
09-302 Capital Area Human Services District $ 119,266
09-304 Metropolitan Human Services District $ 299,969
09-305 Medical Vendor Administration $ 1,196,804
09-306 Medical Vendor Payments $ 46,510,044
09-307 Office of the Secretary $ 3,500
09-309 South Central Human Services Authority $ 18,446
09-320 Office of Aging and Adult Services $ 103,839
09-326 Office of Public Health $ 2,128,387
09-330 Office of Behavioral Health $ 860,151
09-340 Office of Citizens with Developmental Disabilities $ 170,280
Schedule 10-Department of Children and Family Services
10-360 Office of Children and Family Services $ 3,153,009
Schedule 11-Natural Resources
11-434 Office of Mineral Resources $ 180,321
Schedule 17-State Civil Service
17-562 Ethics Administration $ 60,838
17-563 State Police Commission $ 17,276
17-564 Division of Administrative Law $ 10,217
Schedule 19-Higher Education
19A-HIED      $ 22,000,000
19A-661          Office of Student Financial Assistance $ 834,387
Schedule 19-Special Schools and Commissions
19B-653          Louisiana School for the Deaf and Visually Impaired $ 230,000
19B-666          Board of Elementary and Secondary Education $ 18,879
Schedule 19-Education
19D-681          Subgrantee Assistance $ 8,255,913
19D-697          Non-Public Educational Assistance $ 6,868
19D-699          Special School Districts $ 440,015
Schedule 20-Other Requirements
20-451 Local Housing of State Adult Offenders $ 2,527,793
20-452 Local Housing of State Juvenile Offenders $ 159,267
20-930 HIED Debt Service and Maintenance $ 631,159
20-931 LED Debt Service and State Commitments $ 1,796,608
20-XXX Funds  $ 1,669,354
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, 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, 2013, 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 14 day of December, 2012.

Bobby Jindal

Tom Schedler
Secretary of State