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)]
HB 362 Original 2016 Regular Session Richard
Abstract: Establishes the State Government Employment Reduction Program to provide for
reducing the number of employment positions in the executive branch of state government.
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 2016-2017. Also
provides for a reduction of personnel expenditures by $500 million by FY 2019-2020. 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, 2016. 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, 2016. Provides that the reduction factor is the
percentage of all authorized and appropriated positions for the executive branch of state
government as of July 1, 2016, 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 2016-2017, 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 2016-
2017, 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 2017-2018, personnel expenditures shall be at least $166,666,666 less than
baseline personnel expenditures.
(b)For FY 2018-2019, personnel expenditures shall be at least $333,333,333 less than
baseline personnel expenditures.
(c)For FY 2019-2020, 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)Each postsecondary education institution under the jurisdiction of the LSU
board of supervisors. (Postsecondary education institution includes the
Pennington Biomedical Research Center, the LSU Agricultural Center, the
Paul M. Hebert Law Center, and the LSU School of Veterinary Medicine.)
(iv)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)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.
(d)The office of the governor and all agencies and entities within the office of the
governor.
(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.
(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 2016-2017 for the Fiscal Years 2017-
2018 through 2020-2021.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 39:84.2)