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Auxiliary Account

Account Authorization: Act 18 of 1996

The Auxiliary Account provides services to other agencies and programs. This account is funded with interagency transfers and fees and self-generated revenues. The interagency transfers are derived from charging state agencies for various services. Fees and self-generated revenues are derived from charging other entities for services provided by these functions. The Auxiliary Account is made up of the following:

· Community Development Block Grant Revolving Fund

· Pentagon Courts

· State Register

· Louisiana Equipment Acquisitions Fund (LEAF)

· Cash Management

· Travel Management Program

· State Buildings Repair and Major Maintenance Fund.

Community Development Block Grant (CDBG) Revolving Fund: The CDBG Revolving Loan fund represents "program income" received as a result of projects funded in prior fiscal years. This income is derived from repayments of past loans, other income received as a result of rent payments on buildings constructed with CDBG funds, or sale of assets from prior grantees that are in default. Under federal regulations, these funds are limited in use to the funding of future CDBG loan requests that meet Department of Housing and Urban Development (HUD) requirements of benefit to low and moderate income persons. Currently, all funded loan requests through the CDBG Economic Development Program are funded through the Revolving Loan fund. The total amount of funds loaned that now produce income for the fund is in excess of $7 million and a total of 490 new jobs have been created as a result. To date, three additional projects, which have created or will create a total of 161 jobs in the state, have been funded through the Revolving Loan Fund.

Pentagon Courts: This activity accounts for the revenue and expenditures associated with routine operating and maintenance cost of the four buildings known as the Pentagon Courts. The revenue stream is rental payments from tenants in the apartments as well as rental of office space utilized by the Office of the Lieutenant Governor. Expenditures of this activity are payments to State Buildings and Grounds for cost incurred in operating and maintaining the buildings.

State Register: The Office of the State Register is responsible for: (1) publishing, monthly the Louisiana Register , containing state agency rules as these go through the formal rulemaking process; and (2) maintaining the Louisiana Administrative Code , a set of permanent volumes of agency rules formally adopted and amended with legislative authority and through legal rulemaking procedure. The Louisiana Register is the state's official medium for making administrative law documents public. In addition to the publishing of state agency rules, the Louisiana Register also includes the publication of executive orders, policy and procedure memoranda, public meeting notices, professional examination dates, and other legal matters of interest. The Louisiana Administrative Code is a state-certified publication that provides a set of permanent rules that have been formally adopted or amended by state agencies. All information appears in codified form with authority and historical notes.

Louisiana Equipment Acquisitions Fund (LEAF): The LEAF activity provides a means for state agencies to acquire equipment on an installment purchase basis. Equipment financed through LEAF includes those items which historically have been rented or leased and those equipment items historically placed in the bond portion of the capital outlay bill. Features of the activity include: (1) all equipment procured under the Louisiana Procurement Code, (2) equipment approved by the Office of Planning and Budget for funds availability and program necessity, (3) interest rates better than could be obtained through competitive bid, and (4) continues to provide agencies opportunities to acquire equipment for less cost than renting or leasing.

Cash Management: This activity provides the state a mechanism to reimburse the federal government for excess interest earnings on federal funds drawn, in cases of noncompliance with the Cash Management Improvement Act agreement between the State of Louisiana and the U.S. Treasury.

Travel Management Program: The State Travel Office administers the development, implementation, and programmatic matters for statewide, domestic, and international travel services. This includes all contracts as well as the development of rules and regulations. The State Travel Office contracts with a prime travel agency in Baton Rouge with subcontractors in major Louisiana cities. Louisiana's use of a centralized Travel Management Program has saved the state millions of dollars per year for travel-related services. The FY 1996-97 savings for the state was approximately $3 million. ·Government rates for vehicle rentals (10% - 15% savings).

The State Travel Office received an award from the Society of Travel Agents in Government as 1994 Outstanding Best Government Travel Program.

State Buildings Repair and Maintenance Fund: This activity accounts for the revenue and expenditures associated with major repair/acquisition cost, not provided for in the capital outlay bill, in buildings maintained by State Buildings and Grounds. The revenues generated are a part of the rental rate charged to tenants in the buildings. For FY 1997-98, the annual charge per usable square foot occupied is $.20.

SOURCE OF FUNDING

This account is funded with interagency transfers and fees and self-generated revenues. The interagency transfers are derived from charging state agencies for various services. Fees and self-generated revenues are derived from charging other entities for services provided by these functions.

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

 

DESCRIPTION

 

 

 

 

 

$0

$36,671,643

0

 

ACT 18 FISCAL YEAR 1997-1998

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$230,000

0

 

BA-7 restores the appropriation due to the veto of HB 2521 of the 1997 Regular Session

 

 

 

 

 

$0

$36,901,643

0

 

EXISTING OPERATING BUDGET - December 10, 1997

 

 

 

 

 

$0

$233,357

0

 

Rent in State-owned Buildings Adjustment(s)

$0

$0

0

 

Means of Financing Substitution(s) - Replace $4,500,000 of fees and self-generated revenues with interagency transfers to balance to projected revenues

$0

($2,050,000)

0

 

Balance to projected revenue collections in the DOA Cash Management Fund

 

 

 

 

 

$0

$35,085,000

0

 

TOTAL RECOMMENDED

 

 

 

 

 

$0

($1,816,643)

0

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this account is recommended at 95.1% of the existing operating budget. It represents 97.6% of the total request ($ 35,962,217) for this account. The reduction in the budget recommendation for this account is mainly due to the decrease in the projected revenue collections in the DOA Cash Management Fund.

PROFESSIONAL SERVICES

This account does not have funding for Professional Services for Fiscal Year 1998 -1999.

OTHER CHARGES

$3,000,000

 

Community Development Block Grant Revolving Fund-Payback from local governing bodies to make additional loans for economic development

$230,000

 

Pentagon Courts-Rent paid by tenants for upkeep of the buildings

$430,000

 

State Register-Revenue generated by sale to state agencies

$30,000,000

 

LEAF-Interest Income generated by this activity

$250,000

 

Cash Management-Interest income received from the federal government for paying any potential interest that may be due to the federal government

$125,000

 

Travel Management Program-Income from contracted travel agency for operating expenses associated with this office

$1,050,000

 

State Building Repair and Major Renovations-Revenue received from state agencies for repairs and renovations

 

 

 

$35,085,000

 

TOTAL OTHER CHARGES

ACQUISITIONS AND MAJOR REPAIRS

This account does not have funding for Acquistions and Major Repairs for Fiscal Year 1998 -1999.


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