Division of Administration - Kristy Nichols, Commissioner - State of Louisiana
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December 16, 2011
Contact: Michael DiResto, 225-342-7000

Division of Administration and Governor's Office midyear budget reductions announced

BATON ROUGE – The office of the Commissioner of Administration today released information on spending reduction plans for the Division of Administration and the Governor’s Office related to midyear reductions being undertaken in agencies throughout state government.

To help address the midyear deficit, the Division of Administration will reduce spending by $1.1 million, through the elimination of funding allocated for acquisitions, reductions in travel, supplies, and operating expenses, savings resulting from the Governor’s hiring freeze, as well as savings from unobligated funds for local government assistance projects and community water enrichment projects.

The Governor’s Office will reduce spending by $265,000, through reductions in personnel services, travel, supplies, and operating expenses, as well as other charges for the Witness Protection Services Board, which is projected to have sufficient funding for the fiscal year.  This total also includes a $40,000 reduction in the Governor’s Conferences and Interstate Compacts budget related to fees and dues for the Southern Governors’ Association.

Even prior to these midyear reductions, the FY 12 appropriated general fund budget for the Division of Administration was $61.6 million, compared to $71.4 million in general fund budgeted in FY 08, a reduction of almost $10 million, or 14 percent, since then.  Over the same time period, the number of fulltime appropriated positions at the Division went from 825 to 724, a reduction of 101, or 12.2 percent.

Commissioner Paul Rainwater said, “These reductions are targeted so that we protect critical services even as we tighten our belt and reform and restructure government to do more with less.”

The Division has continually streamlined its operations, previously eliminating the Forms Management section, with annual savings of $1.6 million. The Division also eliminated two other activities, the Office of Electronic Services and the State Grant Management Office, consolidating their operations into other sections, resulting in savings of $1.05 million.

The Division’s Comprehensive Public Training Program (CPTP), the state government employee training program, has been transferred to the Department of State Civil Service, to allow for a more integrated training program, online training, with increased efficiency and coordination to yield a 20 percent savings.

The Division is privatizing 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.


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