Bobby Jindal
Governor
Paul W. Rainwater
Commissioner of Administration
Senate Finance Committee Briefing
Commissioner of Administration Paul Rainwater
Commissioner of Administration Paul Rainwater
Commissioner of Administration Paul Rainwater
October 1, 2010
6/12/2008
Presentation Overview
Louisiana’s Economy
Budget Status
Oil Spill
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1
6/12/2008
Commissioner of Administration Paul Rainwater
6/12/2008
Monthly Unemployment Rate – LA & U.S.
LA & U.S.
12.0
10.0
8.0
6.0
Louisiana
U.S.
4.0
2.0
0.0
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6/12/2008
State Domestic Product (nominal)
250000
200000
150000
100000
50000
0
Source: BEA
2000 2001 2002 2003 2004 2005 2006 2007 2008
4
2
Monthly Unemployment Rate
100000
6/12/2008
State Domestic Product
Product
Louisiana
Change
U.S.
Change
Nominal
2008
222 B
--
14.4 T
--
2009
220 B
(1%)
14.1 T
(2%)
2010
234 B
6%
14.6 T
3.5%
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6/12/2008
Median Existing Home Price
National Association of Realtors
National Association of Realtors
$250
United States
Louisiana
$225
$200
$175
$150
Storms
$125
$100
$75
6
3
State Domestic
Median Existing Home Price
6/12/2008
Economic Development
On Sept 15, Governor Jindal announced that Nucor selected
St. James Parish as the location for a multi-phase iron and
steel project.
Estimated to be a capital investment of $3.4 billion.
Could create 1,250 new, direct jobs averaging at least
$75,000 per year, plus benefits.
This will be one of the largest industrial projects in Louisiana
history.
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6/12/2008
Economic Development
August:
Blade Dynamics announced that it will manufacture
advanced wind turbine blades and wind turbine components at the
Michoud Assembly Facility in New Orleans. With investment funding
from Dow Venture Capital and American Superconductor Corp.,
Blade Dynamics has committed to create 600 new, direct jobs by
2015.
July:
Globalstar Inc. announced the relocation of its corporate
headquarters to Covington, LA, from Milpitas, CA. The company will
also relocate a variety of other global business functions to
Covington, including product development, finance, accounting,
sales, marketing, corporate communications, and customer care.
Globalstar has committed to relocate or create more than 200 new
jobs by 2013, and Globalstar's total Louisiana employment will
increase by more than 500 by 2019.
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6/12/2008
Recent Rankings
June 2010:
The U.S. Chamber named Louisiana the best U.S.
export performer for 2009, based on four separate measures of
export activity.
May 2010:
According to the Kauffman Index of Entrepreneurial
Activity, Louisiana jumped from 18
th
for 2008 to 8
th
for 2009, with a
rate of 430 entrepreneurs out of every 100,000 state residents.
April 2010:
TechAmerica’s
Cyberstates
report ranked Louisiana 3
rd
in the nation for tech job wage growth, an increase of 1.4 percent
from 2007 to 2008.
April 2010:
The American Legislative Exchange Council has
continued to boost Louisiana’s rank on the ALEC-Laffer
Competitiveness Index. Louisiana jumped from 18
th
in 2009 to 16
th
in 2010 for its Economic Outlook, based on its tax rates, business
costs, and other indicators.
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Current-year (FY 11) Budget Status
The FY 11 Budget includes General Fund Direct
g
funding of $7.7 billion, a decrease of $1.3 billion, or
14.6 percent, compared to $9.0 billion in General
Fund Direct funding in the FY 10 budget.
The FY 11 Budget includes total funding of $25.5
billion, a decrease of $4.2 billion, or 14.2 percent,
d t th FY 10 T t l B d t f $29 7 billi
compared to the FY 10 Total Budget of $29.7 billion.
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5
Recent Rankings
6/12/2008
Current
year (FY 11) Budget Status
6/12/2008
Position and Employee Reductions
Positions.
The current-year budget reduced the number of fulltime
appropriated positions (T.O.) in the executive branch by
3,037. Following prior reductions of 3,326 fulltime appropriated
positions through budgetary actions in FY 09 and FY 10, the FY 11
budget brings the total to
6,363
fulltime appropriated positions
reduced since the beginning of Governor Jindal’s administration.
Fulltime Employees.
According to the Office of Planning and
Budget, the number of fulltime employees at all appropriated
agencies in the Executive Branch of government as of August 27,
2010 is 82,891. By way of comparison, the number of fulltime
employees at all appropriated agencies in the Executive Branch of
government as of December 31, 2007 was 89,371 – which equates
to a reduction of
6,480
fulltime employees over that time period.
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6/12/2008
Historical Budget Data
The Total State Budget for FY 08, as of January 2008,
g y
was $34.36 billion, compared to a Total State Budget
appropriated for FY 11 of $25.49 billion – a reduction
of $8.87 billion, or 26 percent, over that time period.
State General Fund for FY 08, as of January 2008,
was $8.68 billion, compared to a State General Fund
i t d f FY 11 f $7 72 billi d i f
appropriated for FY 11 of $7.72 billion – a reduction of
$957 million, or 11 percent, over that time period.
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Position and Employee Reductions
Historical Budget Data
6/12/2008
Strategic Reductions
At Louisiana Economic Development department – eliminated the “traditional”
Workforce Development and Training Program which with the creation of the new
Workforce Development and Training Program, which, with the creation of the new
Fast Start Program, was determined to be duplicative.
At the Division of Administration – eliminated the Office of Electronic Services and
merging it with the Office of Information Technology and the Office of the Chief
Information Officer, as well consolidating the State Grants Management Office
(SGMO) within the CDBG program. Privatized claims management and loss
prevention services within Office of Risk Management, which will result in
estimated savings of at least $20 million over five years.
In the Office of the Governor – moved the Louisiana State Board of Cosmetology out
f h ffi f i i d d l d h b d d i i
of the office to function independently as do other boards and commissions.
At the Department of Health and Hospitals – merged all mental health units into
programs under the Office of Mental Health state office. Expanded the Medicaid
“Work at Home” telecommuting program, which creates a fully functional worksite
from the employee's home, to reduce administrative costs and boost productivity.
At the Department of Environmental Quality – privatized their lab activity.
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6/12/2008
Strategic Reductions
At the Louisiana Tax Commission – eliminated the Legal Section of the agency and
outsourcing its legal work.
outsourcing its legal work.
The Department of Social Services has been undertaking a major reorganization that
will consolidate its current four offices into one, while also pursuing a departmental
modernization initiative.
DSS, DHH and the Office of Juvenile Justice are coordinating for youth mental
health services whereby they can leverage Medicaid reimbursable dollars ($1.1
million in savings)
Veteran Affairs will be partnering with private physicians at Louisiana’s Veterans
homes ($1.1 million)
Corrections is privatizing pharmacy services at all facilities ($800,000)
Corrections is consolidating administrative services at all facilities and units will be
consolidated on a regional basis ($1 million)
And, video technology will be used to provide for monitoring of offenders from a
central location ($1.2 million)
DOTD is eliminating its photogrammetry airplane ($292,000) and the Melville ferry
($213,039)
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7
Strategic Reductions
Strategic Reductions
6/12/2008
FY 12 Budget Development
Addressing a projected $1.6 billion General Fund
gpj
shortfall
Proactive engagement with departments
Prioritized funding requests
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6/12/2008
Oil Spill Status
The spill was permanently sealed on Sunday, September 19.
The deepwater drilling moratorium continues to stay in effect without
clarity as to when it will end.
Kenneth Feinberg took control of business and individual claims on
August 23.
BP continues to handle government claims.
BP is funding the Deepwater Horizon Oil Spill Trust for $20 billion
g
p
p
$
¾
$3 billion was deposited into the Trust in August.
¾
$2 billion more is scheduled to be deposited by year end.
¾
$1.25 billion will be deposited each quarter thereafter for 2011,
2102, and 2013
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8
FY 12 Budget Development
Oil Spill Status
6/12/2008
Oil Spill Funds
There are 3 ways in which the State is receiving monies:
The National Pollution Fund Center (NPFC):
Funds are
dispersed by FOSC (Coast Guard) from the Oil Spill
Liability Trust Fund for oil removal activities only.
Natural Resource Damage Assessment (NRDA):
Negotiated settlement between the State and BP through
the NRDA process for compensation of injuries to the
p
natural resources.
Direct Payments from BP
: For increased public services
and loss of government revenue, and any ancillary
repercussions of the oil spill.
p
j
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6/12/2008
Oil Spill Funds Received
The State has received $330.7 million through the
following:
$12.5 million NPFC funding
$10 million in NRDA funding
$15 million in Tourism Grants
$15 million Behavioral Health Grant
$25 illi i R ibl P G
$25 million in a Responsible Party Grant
$13.2 million for a Fisheries Monitoring Program
$240 million for sand berm construction
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9
Oil Spill Funds
Oil Spill Funds Received
6/12/2008
Oil Spill Claims
Business and Individuals in Louisiana have
received the following:
BP: $153,232,283 with claimants of 35,012
GCCF: $261,388,150 through 11,710
payments
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Oil Spill – State Efforts
State Efforts
We have engaged 12 Technical Assistance Providers to work with
di ff t d b i Th i l d
disaffected businesses . These include:
o
Catholic Charities Archdiocese of New Orleans (CCANO)
o
Greater New Orleans, Inc. (GNO Inc.)
o
Mary Queen of Viet Nam Community Development Center (MQCDC)
o
Operation HOPE (OpHOPE)
o
Seedco Financial Services (SFS)
o
South Louisiana Economic Council (SLEC)
o
South Louisiana Economic Council (SLEC)
We hired CCMSI to provide proactive risk management and claims
solutions.
We are setting up a “permanent” interagency Cabinet Working Group.
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10
Oil Spill Claims
6/12/2008
Oil Spill
