[StBernard] Christmas Greetings and Streamlining Update!

Westley Annis Westley at da-parish.com
Tue Dec 22 21:54:06 EST 2009


Christmas is right around the corner, and for many folks, money will be a
little tighter this year. There's no doubt that Louisiana has a lot to be
grateful for this holiday season, but the reality is many of our families
are still struggling. The state could learn a lesson or two from these
families in terms of how to survive during lean times.
STREAMLINING
IN THE NEWS

"Our view: A rare voice of reason is speaking"
Alexandria Town Talk
<http://www.votervoice.net/link/clickthrough/ext/81834.aspx>

________________________________

"Streamlining panel tries to rein in state expenses"
The Times-Picayune
<http://www.votervoice.net/link/clickthrough/ext/81835.aspx>

________________________________

"Streamlining panel plays it safe"
Associated Press
<http://www.votervoice.net/link/clickthrough/ext/81836.aspx>

________________________________

"Commission presents spending cuts list"
The Advocate <http://www.votervoice.net/link/clickthrough/ext/81837.aspx>

________________________________

"Louisiana Citizens Property Insurance Corp. should be phased out,
streamlining panel says"
The Times-Picayune
<http://www.votervoice.net/link/clickthrough/ext/81838.aspx>




You've probably heard the news that the state's Revenue Estimating
Conference expects a $200 million decrease in state revenues this fiscal
year. For the next two years, the state will have an even larger annual
budget shortfall and must work to find ways to plug the holes or cut
expenses. We're required by law to have a balanced budget in this state, and
we can tackle these shortfalls by prioritizing our spending. We do not have
to - nor should we - raise taxes.

The work of the Louisiana Streamlining Government Commission, which is
charged with the responsibility of downsizing state government in light of
projected budget shortfalls, is now more important than ever. As a member of
the commission, I proposed several recommendations that were adopted at our
December 8, 2009 meeting:

1. Cease the Operations of Citizens Property Insurance Company. Citizens
administers the state FAIR and COASTAL Insurance Plans, which provide
insurance to property owners who cannot buy insurance elsewhere. The FAIR
and COASTAL Plans would continue to exist, but they would be managed by the
insurance industry, not by the state through Citizens. Citizens would
continue to exist only to pay its outstanding bonds.

2. Change the Benefit Structure for the Four State Retirement Systems. The
benefit structure for the state's four retirement systems would be changed
to a defined contribution plan for all new employees hired after July 1,
2010.

3. Eliminate NGO Contracts with the State after Governor's Veto. A
Non-Governmental Organization could not contract with a state department if
an appropriation for that NGO was vetoed by the governor and the service to
be provided is the same or similar in the vetoed appropriation.

4. Tie the Budget of the Crescent City Connection to Tolls. The annual
budget for the Crescent City Connection Division of the Louisiana Department
of Transportation and Development could be no more than the amount of annual
tolls that were collected - no more deficit spending. Also, tolls could not
be raised without a 2/3 vote of the legislature.

5. Reduce the Spending of the Office of Juvenile Justice. Annual spending
per "secure commitment bed" would be reduced to the Southern average.

6. Reduce Top-Heavy Management Structure in State Government. The span of
control in all state departments would be a minimum of 1 manager per 10
employees. Highly technical, policy or non-repetitive functions may have a
span of control as low as 1 manager per 5 employees with the permission of
the Joint Legislative Budget Committee.

7. Do Not Raise Taxes. The governor and the legislature should not increase
any state taxes or fees to deal with the current budgetary shortfall.

8. Eliminate Non-Performance Contracts. Any vendor whose contract with the
state has been cancelled for nonperformance shall not be eligible to
contract with the state for 5 years.

9. Require Legislative Approval of Charity Hospital Business Plan. The final
business plan for the proposed new Charity Hospital in New Orleans must be
approved by a vote of the Legislature's Joint Budget Committee.

The Streamlining Commission submitted its preliminary report including these
and other cost-saving measures on December 15. The commission's final report
of recommendations is due January 4. However, the work of the Streamlining
Commission is not finished once this report is submitted. We will continue
to work over the next year to find ways to reduce government and spending in
our state, and I will continue to keep you updated of our progress.

As always, please contact me with any ideas or suggestions at
comments at treasury.state.la.us. We have a lot of work ahead of us in the New
Year.

Becky, Preston and I wish you and your family a Merry Christmas and a Happy
New Year!

John Neely Kennedy
Louisiana State Treasurer





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