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Regular Session, 2012
HOUSE BILL NO. 328
BY REPRESENTATIVE RICHARD
STATE EMPLOYEES: Requires certain reductions in the number of positions in the
executive branch of state government
AN ACT1
To enact R.S. 39:84.2, relative to reducing employment in the executive branch of state2
government; to require the abolition of positions by certain units of government; to3
require certain reductions in personnel expenditures and to provide for the executive4
budget and supporting document to provide for such reductions; to provide5
definitions and procedures; to provide for implementation and rules; to provide for6
legislative oversight and reports; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 39:84.2 is hereby enacted to read as follows: 9
§84.2. State Government Employment Reduction Program10
A. Program established. The State Government Employment Reduction11
Program is established to provide for a reduction in the number of positions of12
employment in the executive branch of state government by a minimum of five13
thousand positions during each of three successive fiscal years, beginning with Fiscal14
Year 2012-2013 and to provide for a reduction in personnel expenditures of at least15
five hundred million dollars by the beginning of the Fiscal Year 2015-2016. Such16
reduction in positions and personnel expenditures shall be accomplished as provided17
in this Section.18
B. Definitions. (1) "Administrative head" shall mean the official within the19
employment reduction unit who has the authority to abolish positions and cause the20 HLS 12RS-235 ENGROSSED
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preparation of reorganization studies and plans for the employment reduction unit.1
If there is more than one such official within the employment reduction unit,2
"administrative head" shall mean all such officials acting jointly for the employment3
reduction unit.4
(2) "Employment reduction unit" shall mean each of the following:5
(a) Each of the twenty departments of the executive branch of state6
government, including all offices, agencies, and governmental entities or units7
included in each, shall constitute a separate employment reduction unit, except that8
the Department of Education shall not include those entities included in9
Subparagraph (b) of this Paragraph.10
(b) The following postsecondary education entities shall each constitute a11
separate employment reduction unit:12
(i) The Board of Regents and all postsecondary education agencies and13
entities that are not part of one of the postsecondary education systems of the state14
shall constitute a separate employment reduction unit.15
(ii) The Board of Supervisors of Louisiana State University and Agricultural16
and Mechanical College and system offices and administration shall constitute a17
separate employment reduction unit.18
(iii) Except as provided in Items (iv) through (vii) of this Subparagraph, each19
postsecondary education institution under the jurisdiction of the Board of20
Supervisors of Louisiana State University and Agricultural and Mechanical College21
shall constitute a separate employment reduction unit. For purposes of this Item,22
"postsecondary education institution" also shall include but not be limited to the23
Pennington Biomedical Research Center, the Louisiana State University Agricultural24
Center, the Paul M. Hebert Law Center, and the Louisiana State University School25
of Veterinary Medicine.26
(iv) Except as provided in Item (v) of this Subparagraph, the Louisiana State27
University Health Sciences Center at New Orleans, including the Health Care28
Services Division, shall constitute a separate employment reduction unit.29 HLS 12RS-235 ENGROSSED
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(v) Each medical center under the jurisdiction of the Louisiana State1
University Health Sciences Center at New Orleans shall constitute a separate2
employment reduction unit.3
(vi) Except as provided in Item (vii) of this Subparagraph, the Louisiana4
State University Health Sciences Center at Shreveport shall constitute a separate5
employment reduction unit.6
(vii) Each medical center under the jurisdiction of the Louisiana State7
University Health Sciences Center at Shreveport shall constitute a separate8
employment reduction unit.9
(viii) The Board of Supervisors of Southern University and Agricultural and10
Mechanical College and system offices and administration shall constitute a separate11
employment reduction unit.12
(ix) Each postsecondary education institution under the jurisdiction of the13
Board of Supervisors of Southern University and Agricultural and Mechanical14
College shall constitute a separate employment reduction unit.15
(x) The Board of Supervisors for the University of Louisiana System and16
system offices and administration shall constitute a separate employment reduction17
unit.18
(xi) Each postsecondary education institution under the jurisdiction of the19
Board of Supervisors for the University of Louisiana System shall constitute a20
separate employment reduction unit.21
(xii) The Board of Supervisors of Community and Technical Colleges and22
the Louisiana Community and Technical College System offices and administration23
shall constitute a separate employment reduction unit.24
(xiii) Each postsecondary education institution under the jurisdiction of the25
Board of Supervisors of Community and Technical Colleges shall constitute a26
separate employment reduction unit.27
(c) The division of administration and all agencies and entities under the28
jurisdiction of the division of administration, including but not limited to those29 HLS 12RS-235 ENGROSSED
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agencies placed in the governor's office by R.S. 36:4.1, shall constitute a separate1
employment reduction unit.2
(d) The office of the governor and all agencies and entities within the office3
of the governor, excluding those included in Subparagraph (c) of this Paragraph,4
shall constitute a separate employment reduction unit.5
(e) The office of the lieutenant governor and all agencies and entities within6
the office of the lieutenant governor, excluding the Department of Culture,7
Recreation and Tourism, shall constitute a separate employment reduction unit.8
(3) "Personnel expenditure reduction factor" means the factor or percentage,9
as determined by the commissioner of administration pursuant to Subsection D of10
this Section, by which one hundred sixty-six million six hundred sixty-six thousand11
dollars shall be multiplied, as provided in Paragraph (F)(2) of this Section, in order12
to determine the minimum annual personnel expenditure reduction required for each13
employment reduction unit.14
(4) "Position" means each authorized/appropriated position as provided in15
the General Appropriation Act or as set by the commissioner of administration as16
authorized by the General Appropriation Act.17
(5) "Reduction factor" means the factor or percentage, as determined by the18
commissioner of administration pursuant to Subsection C of this Section, by which19
the number of positions in each employment reduction unit shall be multiplied to20
determine the minimum number of positions by which the total number of positions21
in the employment reduction unit shall be reduced as required by this Section.22
C. Commissioner of administration; establishment of baseline numbers of23
positions and reduction factors. (1) By not later than September 15, 2012, the24
commissioner of administration shall establish the baseline number of positions for25
each employment reduction unit and the reduction factor applicable to each26
employment reduction unit.27
(2) The commissioner of administration shall establish the baseline number28
of positions for each employment reduction unit by determining the total number of29 HLS 12RS-235 ENGROSSED
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positions that were authorized and appropriated for each employment reduction unit1
as of July 1, 2012.2
(3) The commissioner of administration shall establish the reduction factor3
for each employment reduction unit by determining the percentage of all authorized4
and appropriated positions for the executive branch of state government as of July5
1, 2012, that were authorized and appropriated for each employment reduction unit6
on that date.7
D. Commissioner of administration; establishment of baseline personnel8
expenditures and personnel expenditure reduction factor. The commissioner of9
administration shall establish baseline personnel expenditures by determining the10
total expenditures related to personnel costs for all employmen t reduction units11
contained in the executive budget and supporting document submitted for Fiscal12
Year 2012-2013, including salaries, related benefits, and other compensation13
charges, including but not limited to classified and unclassified salaries, wages,14
overtime, students, and instructors. He shall determine the personnel expenditure15
reduction factor for each employment reduction unit by determining the percentage16
of baseline personnel expenditures that are attributable to personnel costs for each17
employment reduction unit.18
E. The executive budget and supporting document prepared in accordance19
with R.S. 39:36 for the following fiscal years shall provide for a reduction from20
baseline personnel expenditures as follows:21
(1) For Fiscal Year 2013-2014, personnel expenditures shall be at least one22
hundred sixty-six million six hundred sixty-six thousand dollars less than baseline23
personnel expenditures.24
(2) For Fiscal Year 2014-2015, personnel expenditures shall be at least three25
hundred thirty-three million three hundred thirty-three thousand dollars less than26
baseline personnel expenditures.27
(3) For Fiscal Year 2015-2016, personnel expenditures shall be at least five28
hundred million dollars less than baseline personnel expenditures.29 HLS 12RS-235 ENGROSSED
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F. Employment reduction required. (1) During each of the three successive1
fiscal years beginning with Fiscal Year 2012-2013, the administrative head of each2
employment reduction unit shall reduce the number of positions for the employment3
reduction unit by abolishing a number of positions at least equal to five thousand4
multiplied by the reduction factor for the employment reduction unit.5
(2) During each of the three successive fiscal years beginning with Fiscal6
Year 2012-2013, the administrative head of each employment reduction unit shall7
take actions necessary to reduce personnel expenditures for the unit for the8
subsequent fiscal year by an amount at least equal to the personnel expenditure9
reduction factor for the unit multiplied by one hundred sixty-six million six hundred10
sixty-six thousand dollars such that personnel expenditures for all budget reduction11
units shall be in compliance with Subsection E of this Section.12
G. Management to implement reduction. (1) The reduction of positions13
required by Subsection F of this Section shall be accomplished by attrition only; that14
is, each position abolished to accomplish the required reduction of positions shall be15
a position that is vacant at the time it is abolished.16
(2) The reduction of positions and personnel expenditures required by17
Subsection F of this Section shall be accomplished without any reduction in the18
quality or quantity of the work product of the employment reduction unit. If the19
administrative head of the employment reduction unit determines that the required20
abolition of positions and personnel expenditure reduction cannot be accomplished21
without reducing the quality or quantity of the employment reduction unit's work22
product, the administrative head shall so notify the governor and the commissioner23
of administration. If so notified, the governor shall take such steps as are available24
to him to assure that the required position and personnel expenditure reductions are25
made without any reduction in quality or quantity of work product.26
(3)(a) The administrative head of each employment reduction unit shall27
accomplish the required reduction by planned reorganization and management. The28
administrative head of each employment reduction unit shall conduct appropriate29 HLS 12RS-235 ENGROSSED
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reorganization studies and develop such reorganization plans as shall be necessary1
to accomplish the abolition of at least the required number of positions and at least2
the required personnel expenditure reduction without any reduction in the quality or3
quantity of the work product of the employment reduction unit. Such studies and4
plans shall address how the employment reduction unit will abolish positions and not5
fill abolished positions while maintaining the quality and quantity of work product,6
and shall address such matters as layers of management, span of control, clerical7
staffing levels, unit consolidation, process reengineering, retraining for enhanced8
skills, and headquarters staffing reductions.9
(b) At a minimum, such reorganization studies and plans shall provide that:10
(i) The administrative head of each employment reduction unit that has a11
baseline number of positions in excess of three thousand shall reduce the number of12
management layers to not more than six and reorganization plans for such units shall13
detail how this is to be accomplished.14
(ii) Each manager shall supervise no fewer than ten persons, except that for15
highly technical or non-repetitive functions each manager shall supervise no fewer16
than five persons and reorganization plans shall justify the necessity for a manager17
to supervise fewer than ten persons.18
(iii) Organizational entities within an employment reduction unit that have19
two to five positions shall be consolidated into larger and more efficient entities.20
Regional administration shall be consolidated to the extent possible. Position21
reductions at central and regional headquarters of the employment reduction unit22
shall exceed the number of position reductions that are not at central and regional23
headquarters.24
H. Implementation, including rulemaking. The commissioner of25
administration shall provide for the implementation of this Section. The26
commissioner of administration may promulgate such rules as shall be necessary to27
provide for such implementation.28 HLS 12RS-235 ENGROSSED
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I. Legislative oversight. The Joint Legislative Committee on the Budget1
shall oversee the implementation of this Section. Each employment reduction unit2
shall submit reports at least annually to the committee and at such other times as the3
committee may require. Such reports shall at a minimum include a summary of4
findings of reorganization studies and provisions of reorganization plans, an account5
of positions abolished and personnel expenditure reductions made, and such other6
information as the committee may require.7
J. In addition to the information required by R.S. 39:36 and 84.1 and R.S.8
42:375.2, the executive budget for Fiscal Years 2013-2014 through 2016-2017 shall9
include a summary of the annual employee and personnel expenditure reductions by10
department and budget unit since Fiscal Year 2012-2013.11
Section 2. This Act shall become effective upon signature by the governor or, if not12
signed by the governor, upon expiration of the time for bills to become law without signature13
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If14
vetoed by the governor and subsequently approved by the legislature, this Act shall become15
effective on the day following such approval.16
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Richard HB No. 328
Abstract: Establishes the State Government Employment Reduction Program to provide
for reducing the number of employment positions in the executive branch of state
government by at least 5,000 for each of three successive fiscal years, beginning with
FY 2012-2013 and reducing personnel expenditures by $500 million by FY 2015-
2016. Provides relative to such program and implementation and oversight thereof.
Proposed law establishes the State Government Employment Reduction Program to reduce
the number of employment positions in the executive branch of state government by a
minimum of 5,000 positions for each of three successive fiscal years, beginning with FY
2012-2013. Also provides for a reduction of personnel expenditures by $500 million by FY
2015-2016. Provides for such program as follows:
(1)Requires that the commissioner of administration establish the baseline number of
positions for each employment reduction unit and the reduction factor applicable to
each employment reduction unit by not later than Sept. 15, 2012. Provides that the
baseline number of positions is the total number of positions that were authorized
and appropriated for each employment reduction unit as of July 1, 2012. Provides HLS 12RS-235 ENGROSSED
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that the reduction factor is the percentage of all authorized and appropriated
positions for the executive branch of state government as of July 1, 2012, that were
authorized and appropriated for each employment reduction unit on that date.
(2)Provides for reduction of positions in each employment reduction unit based on the
proportion of total positions that are attached to each unit. Requires that for each of
the three fiscal years beginning with FY 2012-2013, each employment reduction
unit's administrative head shall reduce the baseline number of positions for the
employment reduction unit by abolishing a number of positions at least equal to
5,000 multiplied by the reduction factor for the employment reduction unit.
(3)Requires that the commissioner of administration establish baseline personnel
expenditures by determining the total expenditures related to personnel costs for all
employment reduction units contained in the executive budget and supporting
document submitted for FY 2012-2013, including salaries, related benefits, and other
compensation charges, including but not limited to classified and unclassified
salaries, wages, overtime, students, and instructors. Provides that the personnel
expenditure reduction factor for each employment reduction unit shall be
determined by the percentage of baseline personnel expenditures that are attributable
to personnel costs for each employment reduction unit.
(4)Requires the administrative head of each employment reduction unit to reduce
personnel expenditures for the unit during three successive fiscal years. Provides
for the reduction in baseline personnel expenditures in the executive budget and
supporting document for the following fiscal years by the amount indicated:
(a)For FY 2013-2014, personnel expenditures shall be at least $166,666,666
less than baseline personnel expenditures.
(b)For FY 2014-2015, personnel expenditures shall be at least $333,333,333
less than baseline personnel expenditures.
(c)For FY 2015-2016, personnel expenditures shall be at least $500,000,000
less than baseline personnel expenditures.
(5)Identifies each of the following as a separate employment reduction unit:
(a)Each of the 20 departments of the executive branch of state government,
including all offices, agencies, and governmental entities or units included
in each, except that the Dept. of Education shall not include those entities
included in (b) below.
(b)Each of the following postsecondary education entities is a separate
employment reduction unit:
(i)The Board of Regents and all postsecondary education agencies and
entities that are not part of one of the postsecondary education
systems of the state.
(ii)The LSU board of supervisors and system offices and administration.
(iii)Except as provided in (iv) through (vii) below, each postsecondary
education institution under the jurisdiction of the LSU board of
supervisors. (Postsecondary education institution also shall include
but not be limited to the Pennington Biomedical Research Center, the
LSU Agricultural Center, the Paul M. Hebert Law Center, and the
LSU School of Veterinary Medicine.) HLS 12RS-235 ENGROSSED
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(iv)Except as provided in (v) below, the LSU Health Sciences Center at
New Orleans, including the Health Care Services Division.
(v)Each medical center under the jurisdiction of the LSU Health
Sciences Center at New Orleans.
(vi)Except as provided in (vii) below, the LSU Health Sciences Center
at Shreveport.
(vii)Each medical center under the jurisdiction of the LSU Health
Sciences Center at Shreveport.
(viii)The Southern University board of supervisors and system offices and
administration.
(ix)Each postsecondary education institution under the jurisdiction of the
Southern University board of supervisors.
(x)The University of La. System board of supervisors and system offices
and administration.
(xi)Each postsecondary education institution under the jurisdiction of the
University of La. System board of supervisors.
(xii)The Board of Supervisors of Community and Technical Colleges and
La. Community and Technical College System offices and
administration.
(xiii)Each postsecondary education institution under the jurisdiction of the
Board of Supervisors of Community and Technical Colleges.
(c)The division of administration and all agencies and entities under the
jurisdiction of the division of administration, including but not limited to
those agencies placed in the governor's office by R.S. 36:4.1.
(d)The office of the governor and all agencies and entities within the office of
the governor, excluding those included in (c) above.
(e)The office of the lieutenant governor and all agencies and entities within the
office of the lieutenant governor, excluding the Dept. of Culture, Recreation
and Tourism.
(6)Defines terms, including:
(a)"Administrative head" – the official within the employment reduction unit
who has the authority to abolish positions and cause the preparation of
reorganization studies and plans for the employment reduction unit. If there
is more than one, "administrative head" means all such officials acting jointly
for the employment reduction unit.
(b)"Position" – each authorized/appropriated position as provided in the General
Appropriation Act or as set by the commissioner of administration as
authorized by the General Appropriation Act.
(7)Requires that the required reduction of positions shall be accomplished by attrition
only, that is that each position abolished shall be a position that is vacant at the time
it is abolished. HLS 12RS-235 ENGROSSED
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(8)Also requires that the reduction of positions and personnel expenditures be
accomplished without any reduction in the quality or quantity of the work product
of the employment reduction unit. Requires the unit's administrative head to notify
the governor and the commissioner of administration if he determines that the
required abolition of positions and reduction of personnel expenditures cannot be
accomplished without reducing the quality or quantity of the unit's work product.
If so notified, requires the governor to take steps available to him to assure that the
required reductions are made without any reduction in quality or quantity of work
product.
(9)Further requires the administrative head of each employment reduction unit to
accomplish the required reduction by planned reorganization and management.
Requires each such administrative head to conduct reorganization studies and
develop reorganization plans necessary to accomplish required reductions without
any reduction in the quality or quantity of the work product of the unit. Requires that
such studies and plans address how the unit will abolish positions and not fill
abolished positions while maintaining the quality and quantity of work product.
Requires that such studies and plans address such matters as layers of management,
span of control, clerical staffing levels, unit consolidation, process reengineering,
retraining for enhanced skills, and headquarters staffing reductions. Requires that,
at a minimum, such plans and studies provide for:
(a)Reduction of management layers to a maximum of six, for each employment
reduction unit having a baseline number of positions in excess of 3,000.
Requires the unit's reorganization plans to detail how this is to be
accomplished.
(b)Supervision of no less than 10 persons by each manager, or not more than
five for highly technical or non-repetitive functions. Requires reorganization
plans to justify the necessity for a manager to supervise less than 10 persons.
(c)Consolidation of organizational entities within an employment reduction unit
that have two to five positions into larger and more efficient entities and
consolidation of regional administration to the extent possible. Requires that
position reductions at central and regional headquarters of the employment
reduction unit exceed the number of position reductions not at such
headquarters.
(10)Requires the commissioner of administration to provide for the implementation of
proposed law and authorizes him to promulgate rules necessary therefor.
(11)Requires the Joint Legislative Committee on the Budget to oversee implementation
of proposed law. Requires that each employment reduction unit submit reports at
least annually to the committee and at other times the committee requires, such
reports at a minimum to include a summary of reorganization studies and plans, an
account of positions abolished and personnel expenditure reductions, and other
information the committee may require.
(12)Requires that the executive budget contain a summary of actual employee and
personnel cost reductions by department and budget unit since FY 2012-2013 for the
Fiscal Years 2013-2014 through 2016-2017.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 39:84.2)