Expenditure Reduction Order

WHEREAS, pursuant to Article IV, Section 5 of the Louisiana Constitution of 1974, as amended, and Act No. 11 of the 2000 Second Extraordinary Session of the Louisiana Legislature, the governor may issue executive orders which reduce appropriations for various agencies in the executive branch of state government (hereafter "expenditure reduction"); and

WHEREAS, to ensure that the state of Louisiana will not suffer a budget deficit due to fiscal year 2000-2001 appropriations exceeding actual revenues, prudent money management practices dictate that the best interest of the citizens of the state of Louisiana will be served by replacing the hiring freeze ordered throughout the executive branch of state government until June 30, 2001, by Executive Order No. MJF 2001-2, issued on January 24, 2001, with an expenditure reduction order, so as to allow increased flexibility while achieving a state general fund expenditure reduction for the 2000-2001 fiscal year of at least twenty- nine million four hundred eighty-four thousand dollars ($29,484,000);

NOW THEREFORE, I, M.J. "MIKE" FOSTER, JR., 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 of the executive branch of the state of Louisiana (hereafter "Unit" and/or "Units"), described in and/or funded by appropriations through Act No. 11 of the 2000 Second Extraordinary Session of the Louisiana Legislature (hereafter "Act No. 11"), shall reduce expenditure of funds appropriated by Act No. 11 from the state general fund to the Unit, in the amounts shown below:

Executive Department
Schedule 01
$ 2,113,491
Secretary of State
Budget Unit 04-139
$ 71,924
Commissioner of Elections
Budget Unit 04-144
$ 737,249
State Treasurer
Budget Unit 04-147
$ 49,238
Agriculture and Forestry
Budget Unit 04-160
$ 1,887,446
Department of Economic Development
Schedule 05
$ 535,714
Department of Culture, Recreation and Tourism
Schedule 06
$ 773,683
Department of Transportation and Development
Schedule 07
$ 4,340
Department of Public Safety and Corrections Corrections Services
Schedule 08 Corrections Services Budget Units
$ 5,705,845
Department of Health and Hospitals
Schedule 09
Department of Social Services
Schedule 10
$ 3,587,736
Department of Natural Resources
Schedule 11
$ 87,215
Department of Revenue
Schedule 12
$ 837,348
Department of Environmental Quality
Schedule 13
$ 53,287
Department of Labor
Schedule 14
$ 164,532
Department of Civil Service
Schedule 17
$ 119,049
Louisiana Educational Television Authority
Budget Unit 19-662
$ 40,682
Council for Development of French in Louisiana
Budget Unit 19-663
$ 13,200
Department of Education
Schedule 19 Department of Education Budget Units, except Budget Unit 19-695
$ 909,147
Louisiana State University Health Science Center
Health Care Services Division
Budget Unit 19-610
$ 98,378
Other Requirements
Schedule 20
$ 74,936


A. No later than March 1, 2001, the head of each Unit specified in Section 1 of this Order shall submit a mid- year budget adjustment plan for approval to the commissioner of administration (hereafter "commissioner"), using the BA-7 form and questionnaire revised January 30, 2001, which reflects the Unit's proposed allocation of expenditure reductions (hereafter "mid-year budget adjustment plan").

B. No Unit shall implement the expenditure reductions mandated by Section 1 of the Order without the commissioner's prior written approval of the Unit's proposed mid-year budget adjustment plan.

C. Following receipt of the commissioner's written approval, any change to a mid-year budget adjustment plan shall require the commissioner's prior written approval.

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

SECTION 4: Executive Order No. MJF 2001-2, issued on January 24, 2001, is terminated and rescinded.

SECTION 5: This Order is effective upon signature and shall remain in effect through June 30, 2001, unless amended, modified, terminated, or rescinded prior to that date.

M.J. "Mike" Foster, Jr.

Fox McKeithen
Secretary of State