Gov. Bobby Jindal’s executive budget, which leaves general funding for higher education untouched, relies on finding millions of dollars of efficiencies throughout state government. But some policymakers say dependence is too ambitious and could cause budget cuts further down the road.
In his presentation unveiling the budget, Commissioner of Administration Paul Rainwater said the Jindal administration estimates the state can save $225 million by “reducing projected General Fund increases at continuation through funding efficiencies.”
Instead of simply making sweeping funding cuts to individual programs — like the 32- percent cut for which higher education administrators were told to prepare last semester — the administration seeks to make departments throughout the state more efficient.
There are many such proposals in nearly every area of the state bureaucracy.
Several state agencies will consolidate into fewer offices, reducing overhead and personnel costs. The Department of Revenue, for example, will downsize from eight offices to three, serving the north-central, southeast and southwest areas of the state.
Another example would consolidate “back office space” for the Louisiana State Police, the Governor’s Office of Homeland Security and Emergency Preparedness and the Office of Juvenile Justice. These three programs would share human resources, financing and other administrative services.
Other efficiencies will come from using technology to reduce overhead. For example, the budget chalks up $1.35 million in savings in the Department of Corrections for using “telemedicine” (the use of electronic communications to diagnose prisoners), video court proceedings, security cameras and escape-proof “shaker fences.”
The administration says these techniques would reduce the number of workers and the amount of bureaucracy, leading to savings.
Jindal’s budget counts the $225 million in efficiencies in addition to $410 million in “strategic reductions,” $110 million in reductions from the executive branch and $96 million in reduced positions.
Some policymakers — especially state legislators — have said it’s unrealistic to demand $225 million in efficiencies in addition to those cuts.
“I’m very concerned that when we start budgeting these efficiencies so we can get through elections, we’ll be back here for a mid-year cut,” said Sen. Lydia Jackson, D-Shreveport, at the budget’s unveiling.
If the efficiencies the administration is counting on don’t materialize, it’s likely state agencies could face midyear cuts when the state budget comes up short.
Jackson and several other legislators also argued state institutions have already scrambled to trim most inefficiencies as the state has grappled with budget issues in the past two years.
Rainwater promised the Jindal administration has been “working overtime” to hunt down these efficiencies, working closely with agencies throughout the state.
 
 
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contact Matthew Albright at [email protected]