A large influx of federal dollars after Hurricane Katrina turned Louisiana from an economically poor state into a relatively rich one.But enormous federal funding decreased over time, and the state has faced a severe decline in revenues through the 2012 fiscal year.Enter the Commission on Streamlining Government, a 10-member panel created in July to study which state agencies can be eliminated, streamlined, consolidated or outsourced to reduce the size of government.”Now is the time to drive the reforms needed to create a strong and sustainable state government that is accountable and effective,” said Gov. Bobby Jindal in a Sept. 16 letter to state Sen. Jack Donahue, chairman of the commission.The state’s per-capita income increased 42 percent from 2005 to 2007, according to the Bureau of Economic Analysis. The increase includes all sources of revenue, including federal assistance like the Road Home program and other recovery programs.The increase in per-capita income relates to less federal aid, though most of the money has been spent on recovery.Because of this and other factors, the state’s five-year budget outlook shows an estimated shortfall of almost $3 billion. This shortfall requires at least $802 million in savings for the 2010 fiscal year alone. These required savings exclude another $146 million in reductions required for higher education.Those reductions are being handled by a separate commission.The commission is broken down into five advisory groups, each responsible for exploring ways to reduce state spending in various sectors.The groups are expected to present their ideas to the general commission in mid-October, said Jerry Guillot, streamlining commission administrator.One of the ideas already submitted by the Advisory Group on Efficiency and Benchmarking recommends the University of Louisiana System, Southern University, LSU systems and the boards of supervisors for each be abolished. “We don’t have too many universities — we have too many universities that try to do the same thing,” said John Kennedy, state treasurer and chairman of the advisory group on efficiency and benchmarking.The advisory group recommended each of these organizations be placed under the Louisiana Board of Regents to limit the number of organizations required to operate the systems.”We need a government structure that looks like someone designed it on purpose, and we don’t have that,” Kennedy said. “It’s hurting our universities, it’s hurting LSU particularly and it’s costing the taxpayers’ money.”To reduce the rate of criminal recidivism in the state, the group put forth a recommendation to require inmates at least pass a general education development test before being eligible for probation or parole.Pam Laborde, communication director for the state department of corrections, said this recommendation would drive up the cost of incarceration because it would require more teachers and longer periods of incarceration.”There are obviously some things we’d have to work out before that statute could be implemented,” Laborde said.Though no dollar figure is available, Laborde said it could save money in the long run if it reduced the recidivism rate in the state. She said Louisiana has a 46 to 47 percent recidivism rate.Another recommendation would prohibit legislative earmarks for non-government agencies like social clubs and nonprofit organizations. The advisory group found the state appropriates millions of dollars to NGOs each year, which curtail the ability of the executive branch to manage fund allocation.Kennedy said $30 to $60 million are earmarked for NGOs each year.The group also recommended all departments reduce 5,000 positions from each department in state government during the next three years. Vacancies, rather than layoffs, would be used to eliminate the positions.—–Contact Adam Duvernay at [email protected]