Louisiana Senate Bill SB288

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10

Caption

Directs each state executive agency to reduce the costs of its contracts by ten percent for FY11, except as approved by the commissioner of administration. (7/1/10) (OR -$46,900,000 GF EX See Note)

Impact

The implementation of SB 288 is expected to significantly impact the way state agencies operate in terms of budgeting and financial management. By imposing a uniform cost-cutting measure, the bill aims to encourage agencies to reassess their contractual obligations and seek out more cost-effective solutions. A reporting mechanism is also established, requiring agencies to report their contract reductions and any exceptions granted to the Joint Legislative Committee on the Budget, thereby increasing accountability in budget management.

Summary

Senate Bill 288, drafted by Senator Donahue, mandates a 10% reduction in contract costs for all state executive agencies for the fiscal year 2010-2011. This directive is aimed at streamlining government operations and ensuring fiscal responsibility amidst budget constraints. The bill intends to force agencies to identify areas for cost savings, thereby contributing to the overall reduction of state expenditures.

Sentiment

The sentiment surrounding SB 288 appears to be generally supportive among those advocating for fiscal responsibility and efficiency within government agencies. However, there may be concerns regarding the potential impact on service delivery, as agencies adjust their contracts, which could lead to reduced service levels in some areas. This highlights a balancing act between cost savings and the necessity of maintaining quality operations.

Contention

While the bill is framed as a responsible fiscal measure, there are points of contention regarding the exceptions clause, which allows the commissioner of administration to approve deviations from the 10% reduction requirement. Critics may view this as a potential loophole that could undermine the bill's cost-cutting goals, allowing agencies with strong arguments to preserve funding at the expense of broader fiscal discipline. The effectiveness of this measure will depend on the transparency of the exception process and the willingness of agencies to prioritize cost savings.