EXECUTIVE ORDER MJF 02-59

Executive Branch - Contingency Cuts In Appropriations


WHEREAS,   R.S. 39:75(A)(1) directs the Division of Administration to submit a monthly budget status report to the Joint Legislative Committee on the Budget (hereafter "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) mandates the Committee shall immediately notify the governor that a projected deficit exists for that fund;

WHEREAS,   by letter dated October 22, 2002, received on October 24, 2002, the Committee notified the governor that it approved a budget status report at its October 18, 2002 meeting, indicating a projected deficit of eighty-six million three hundred eighty-seven thousand dollars ($86,387,000) exists in the state general fund for fiscal year 2002-2003, based on the revised revenue forecast adopted by the Revenue Estimating Conference on October 10, 2002;

WHEREAS,   once notified that a projected deficit exists, pursuant to R.S. 39:75(C)(1)(a) and/or Section 8 of Act No. 13 of the 2002 Regular Session of the Louisiana Legislature, the governor has interim budget balancing powers to adjust the budget, and if the governor does not make necessary adjustments in the appropriations within thirty (30) days of the determination of the projected deficit in a fund to eliminate the projected deficit, R.S. 39:75(D) mandates the governor call a special session of the Louisiana Legislature for that purpose;

WHEREAS,   pursuant to R.S. 39:87 and R.S. 39:94, by letter dated November 8, 2002, the governor requested that the secretary of the Senate and the clerk of the House of Representatives prepare and submit a ballot to each elected member of the Louisiana Legislature of a proposition to make available for appropriation from the Budget Stabilization Fund (hereafter "Rainy Day Fund") a sum not to exceed one-third (1/3) of the balance of the Rainy Day Fund or eighty-six million three hundred eighty-seven thousand dollars ($86,387,000), whichever is less, for the purpose of obtaining written consent approving the proposition from at least two-thirds (2/3) of the elected members of both houses of the Louisiana Legislature;

WHEREAS,   the secretary of the Senate and the clerk of the House of Representatives transmitted the ballots setting forth the proposition to each elected member of the Louisiana Legislature by certified mail with return receipt requested on Friday, November 8, 2002; after casting a vote, each member is to sign the ballot and return it to sender by facsimile or mail received no later than 5:00 p.m. on Saturday, November 23, 2002, in accordance with R.S. 39:87 and R.S. 39:94;

WHEREAS,   in an abundance of caution to ensure budget adjustments to eliminate the projected deficit are made within the required thirty (30) day period, this Order is being issued to have a contingency plan in place in case written consent of two-thirds (2/3) of the elected members of both houses of the Louisiana Legislature approving the use of the Rainy Day Fund is not obtained as required by R.S. 39:87 and R.S. 39:94, under such circumstances, in addition to the expenditure freeze ordered by Executive Order No. MJF 2002-29, issued on September 24, 2002, appropriations for fiscal year 2002- 2003 from the state general fund shall be reduced and/or cut throughout the executive branch of state government commencing at 12:01 a.m. on December 13, 2002, in the amount of eighty-six million three hundred eighty- seven thousand dollars ($86,387,000); and

WHEREAS,   if it becomes necessary to implement the appropriations cuts set forth in this Order, on or about December 10, 2002, the date the proposed constitutional amendment of Article VII, Section 10(F) of the Louisiana Constitution of 1974, approved on November 5, 2002, becomes effective and the provisions of Act No. 1063 of the 2001 Regular Session of the Louisiana Legislature become operative, the allocation of reductions and/or cuts to appropriations set forth in this Order may be modified and/or amended to reflect these constitutional and/or statutory changes;

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:   If written consent approving the proposition to make available for appropriation from the Budget Stabilization Fund the sum of eighty-six million three hundred eighty-seven thousand dollars ($86,387,000), not to exceed one-third (1/3) of the balance of the Budget Stabilization Fund as certified by the Revenue Estimating Conference pursuant to R.S. 39:95, is not obtained from the elected members of two-thirds (2/3) of both houses of the Louisiana Legislature in accordance with the polling procedure set forth in R.S. 39:87 and R.S. 39:94, commencing at 12:01 a.m. on December 13, 2002, appropriations to the following departments, agencies, and/or budget units of the executive branch of the state of Louisiana, described in and/or funded by appropriations in Act No. 13 of the 2002 Regular Session of the Louisiana Legislature, (hereafter "Unit" and/or "Units") shall be reduced in the amounts shown below (hereafter "appropriations cuts"):

Executive Department State General Fund
Schedule 01 $ 5,330,645
Secretary of State
Budget Unit 04-139
$ 239,458
Office of the Attorney General
Budget Unit 04-141
$ 753,875
Commissioner of Elections
Budget Unit 04-144
$ 316,530
Lieutenant Governor
Budget Unit 04-146
$ 71,883
State Treasurer
Budget Unit 04-147
$ 83,126
Agriculture and Forestry
Budget Unit 04-160
$ 1,894,227
Department of Culture, Recreation and Tourism
Schedule 06
$ 2,569,723
Department of Transportation and Development
Schedule 07
$ 95,452
Department of Public Safety and Corrections Corrections Services
All Corrections Services Budget Units in Schedule 08
$ 5,136,462
Department of Health and Hospitals
Schedule 09
$ 55,774,391
Department of Social Services
Schedule 10
$ 2,537,652
Department of Natural Resources
Schedule 11
$ 545,147
Department of Revenue
Schedule 12
$ 191,991
Department of Labor
Schedule 14
$ 215,733
Department of Civil Service
Schedule 17
$ 30,624
Department of Education
All Department of Education Budget Units in Schedule 19 (except 19-695 & 19-699)
$ 9,558,033
Louisiana State University Health Science Center Health Care Services Division
Budget Unit 19-610
$ 32,560
Other Requirements
Schedule 20
$ 1,009,488

SECTION 2:   A. If the contingency plan for appropriations cuts is implemented at 12:01 a.m. on December 13, 2002, no later than December 31, 2002, the head of each Unit listed in Section 1 of this Order shall submit to the commissioner of administration (hereafter "commissioner") a supplemental mid-year budget adjustment plan, on the BA-7 form and questionnaire revised January 30, 2001, which reflects the Unit's proposed allocation of the appropriations cuts ordered in Section 1 of this Order (hereafter "supplemental mid-year budget adjustment plan"), and a description of the methodology used to formulate the supplemental mid-year budget adjustment plan.

B. In the event that positions of employment will be affected by the supplemental mid-year budget adjustment plan, the description of the methodology used to formulate the supplemental mid-year budget adjustment plan shall include, at a minimum, the following information for each position of employment proposed to be affected:

1. The type of position of employment affected, including job title;

2. The job function of the position of employment and an analysis of how it meets or serves the role, scope, and/or mission of the Unit; and

3.  A description of why the particular position of employment was selected as part of the unit's supplemental mid-year budget adjustment plan.

C. No Unit shall implement the appropriations cuts mandated by Section 1 of this Order without the commissioner's prior written approval of the Unit's supplemental mid-year budget adjustment plan.

D. After the commissioner has given approval of a Unit's supplemental mid-year budget adjustment plan, any change to the supplemental mid-year budget adjustment 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 continue in effect until amended, modified, terminated, or rescinded by the governor, or terminated by operation of law.

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 November, 2002.

M.J. "Mike" Foster, Jr.
Governor

ATTEST BY
THE GOVERNOR
Fox McKeithen
Secretary of State