HLS 16RS-296 ORIGINAL
2016 Regular Session
HOUSE BILL NO. 362
BY REPRESENTATIVE RICHARD
STATE EMPLOYEES: Requires certain reductions in the number of positions in the
executive branch of state government
1 AN ACT
2To enact R.S. 39:84.2, relative to reducing employment in the executive branch of state
3 government; to require the abolition of positions by certain units of government; to
4 require certain reductions in personnel expenditures and to provide for the executive
5 budget and supporting document to provide for such reductions; to provide
6 definitions and procedures; to provide for implementation and rules; to provide for
7 legislative oversight and reports; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 39:84.2 is hereby enacted to read as follows:
10 §84.2. State Government Employment Reduction Program
11 A. Program established. The State Government Employment Reduction
12 Program is established to provide for a reduction in the number of positions of
13 employment in the executive branch of state government by a minimum of five
14 thousand positions during each of three successive fiscal years, beginning with Fiscal
15 Year 2016-2017, and to provide for a reduction in personnel expenditures of at least
16 five hundred million dollars by the beginning of the Fiscal Year 2019-2020. Such
17 reduction in positions and personnel expenditures shall be accomplished as provided
18 in this Section.
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1 B. Definitions.
2 (1) "Administrative head" means the official within the employment
3 reduction unit who has the authority to abolish positions and cause the preparation
4 of reorganization studies and plans for the employment reduction unit. If there is
5 more than one such official within the employment reduction unit, "administrative
6 head" means all such officials acting jointly for the employment reduction unit.
7 (2) "Employment reduction unit" means each of the following:
8 (a) Each of the twenty departments of the executive branch of state
9 government, including all offices, agencies, and governmental entities or units
10 included in each, shall constitute a separate employment reduction unit, except that
11 the Department of Education shall not include those entities included in
12 Subparagraph (b) of this Paragraph.
13 (b) The following postsecondary education entities shall each constitute a
14 separate employment reduction unit:
15 (i) The Board of Regents and all postsecondary education agencies and
16 entities that are not part of one of the postsecondary education systems of the state
17 shall constitute a separate employment reduction unit.
18 (ii) The Board of Supervisors of Louisiana State University and Agricultural
19 and Mechanical College and system offices and administration shall constitute a
20 separate employment reduction unit.
21 (iii) Except as provided in Items (iv) through (vii) of this Subparagraph, each
22 postsecondary education institution under the jurisdiction of the Board of
23 Supervisors of Louisiana State University and Agricultural and Mechanical College
24 shall constitute a separate employment reduction unit. For purposes of this Item,
25 "postsecondary education institution" shall also include the Pennington Biomedical
26 Research Center, the Louisiana State University Agricultural Center, the Paul M.
27 Hebert Law Center, and the Louisiana State University School of Veterinary
28 Medicine.
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HB NO. 362
1 (iv) Except as provided in Item (v) of this Subparagraph, the Louisiana State
2 University Health Sciences Center at New Orleans, including the Health Care
3 Services Division, shall constitute a separate employment reduction unit.
4 (v) Each medical center under the jurisdiction of the Louisiana State
5 University Health Sciences Center at New Orleans shall constitute a separate
6 employment reduction unit.
7 (vi) Except as provided in Item (vii) of this Subparagraph, the Louisiana
8 State University Health Sciences Center at Shreveport shall constitute a separate
9 employment reduction unit.
10 (vii) Each medical center under the jurisdiction of the Louisiana State
11 University Health Sciences Center at Shreveport shall constitute a separate
12 employment reduction unit.
13 (viii) The Board of Supervisors of Southern University and Agricultural and
14 Mechanical College and system offices and administration shall constitute a separate
15 employment reduction unit.
16 (ix) Each postsecondary education institution under the jurisdiction of the
17 Board of Supervisors of Southern University and Agricultural and Mechanical
18 College shall constitute a separate employment reduction unit.
19 (x) The Board of Supervisors for the University of Louisiana System and
20 system offices and administration shall constitute a separate employment reduction
21 unit.
22 (xi) Each postsecondary education institution under the jurisdiction of the
23 Board of Supervisors for the University of Louisiana System shall constitute a
24 separate employment reduction unit.
25 (xii) The Board of Supervisors of Community and Technical Colleges and
26 the Louisiana Community and Technical College System offices and administration
27 shall constitute a separate employment reduction unit.
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1 (xiii) Each postsecondary education institution under the jurisdiction of the
2 Board of Supervisors of Community and Technical Colleges shall constitute a
3 separate employment reduction unit.
4 (c) The division of administration and all agencies and entities under the
5 jurisdiction of the division of administration, including but not limited to those
6 agencies placed in the governor's office by R.S. 36:4.1, shall constitute a separate
7 employment reduction unit.
8 (d) The office of the governor and all agencies and entities within the office
9 of the governor, excluding those included in Subparagraph (c) of this Paragraph,
10 shall constitute a separate employment reduction unit.
11 (e) The office of the lieutenant governor and all agencies and entities within
12 the office of the lieutenant governor, excluding the Department of Culture,
13 Recreation and Tourism, shall constitute a separate employment reduction unit.
14 (3) "Personnel expenditure reduction factor" means the factor or percentage,
15 as determined by the commissioner of administration pursuant to Subsection D of
16 this Section, by which one hundred sixty-six million six hundred sixty-six thousand
17 dollars shall be multiplied, as provided in Paragraph (F)(2) of this Section, in order
18 to determine the minimum annual personnel expenditure reduction required for each
19 employment reduction unit.
20 (4) "Position" means each authorized/appropriated position as provided in
21 the General Appropriation Act or as set by the commissioner of administration as
22 authorized by the General Appropriation Act.
23 (5) "Reduction factor" means the factor or percentage, as determined by the
24 commissioner of administration pursuant to Subsection C of this Section, by which
25 the number of positions in each employment reduction unit shall be multiplied to
26 determine the minimum number of positions by which the total number of positions
27 in the employment reduction unit shall be reduced as required by this Section.
28 C. Commissioner of administration; establishment of baseline numbers of
29 positions and reduction factors.
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1 (1) By no later than September 15, 2016, the commissioner of administration
2 shall establish the baseline number of positions for each employment reduction unit
3 and the reduction factor applicable to each employment reduction unit.
4 (2) The commissioner of administration shall establish the baseline number
5 of positions for each employment reduction unit by determining the total number of
6 positions that were authorized and appropriated for each employment reduction unit
7 as of July 1, 2016.
8 (3) The commissioner of administration shall establish the reduction factor
9 for each employment reduction unit by determining the percentage of all authorized
10 and appropriated positions for the executive branch of state government as of July
11 1, 2016, that were authorized and appropriated for each employment reduction unit
12 on that date.
13 D. Commissioner of administration; establishment of baseline personnel
14 expenditures and personnel expenditure reduction factor. The commissioner of
15 administration shall establish baseline personnel expenditures by determining the
16 total expenditures related to personnel costs for all employment reduction units
17 contained in the executive budget and supporting document submitted for Fiscal
18 Year 2016-2017, including salaries, related benefits, and other compensation
19 charges, including but not limited to classified and unclassified salaries, wages,
20 overtime, students, and instructors. He shall determine the personnel expenditure
21 reduction factor for each employment reduction unit by determining the percentage
22 of baseline personnel expenditures that are attributable to personnel costs for each
23 employment reduction unit.
24 E. The executive budget and supporting document prepared in accordance
25 with R.S. 39:36 for the following fiscal years shall provide for a reduction from
26 baseline personnel expenditures as follows:
27 (1) For Fiscal Year 2017-2018, personnel expenditures shall be at least one
28 hundred sixty-six million six hundred sixty-six thousand dollars less than baseline
29 personnel expenditures.
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1 (2) For Fiscal Year 2018-2019, personnel expenditures shall be at least three
2 hundred thirty-three million three hundred thirty-three thousand dollars less than
3 baseline personnel expenditures.
4 (3) For Fiscal Year 2019-2020, personnel expenditures shall be at least five
5 hundred million dollars less than baseline personnel expenditures.
6 F. Employment reduction required.
7 (1) During each of the three successive fiscal years beginning with Fiscal
8 Year 2016-2017, the administrative head of each employment reduction unit shall
9 reduce the number of positions for the employment reduction unit by abolishing a
10 number of positions at least equal to five thousand multiplied by the reduction factor
11 for the employment reduction unit.
12 (2) During each of the three successive fiscal years beginning with Fiscal
13 Year 2016-2017, the administrative head of each employment reduction unit shall
14 take actions necessary to reduce personnel expenditures for the unit for the
15 subsequent fiscal year by an amount at least equal to the personnel expenditure
16 reduction factor for the unit multiplied by one hundred sixty-six million six hundred
17 sixty-six thousand dollars such that personnel expenditures for all budget reduction
18 units shall be in compliance with Subsection E of this Section.
19 G. Management to implement reduction.
20 (1) The reduction of positions required by Subsection F of this Section shall
21 be accomplished by attrition only; that is, each position abolished to accomplish the
22 required reduction of positions shall be a position that is vacant at the time it is
23 abolished.
24 (2) The reduction of positions and personnel expenditures required by
25 Subsection F of this Section shall be accomplished without any reduction in the
26 quality or quantity of the work product of the employment reduction unit. If the
27 administrative head of the employment reduction unit determines that the required
28 abolition of positions and personnel expenditure reduction cannot be accomplished
29 without reducing the quality or quantity of the employment reduction unit's work
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1 product, the administrative head shall so notify the governor and the commissioner
2 of administration. If so notified, the governor shall take such steps as are available
3 to him to assure that the required position and personnel expenditure reductions are
4 made without any reduction in quality or quantity of work product.
5 (3)(a) The administrative head of each employment reduction unit shall
6 accomplish the required reduction by planned reorganization and management. The
7 administrative head of each employment reduction unit shall conduct appropriate
8 reorganization studies and develop such reorganization plans as are necessary to
9 accomplish the abolition of at least the required number of positions and at least the
10 required personnel expenditure reduction without any reduction in the quality or
11 quantity of the work product of the employment reduction unit. Such studies and
12 plans shall address how the employment reduction unit will abolish positions and not
13 fill abolished positions while maintaining the quality and quantity of work product,
14 and shall address such matters as layers of management, span of control, clerical
15 staffing levels, unit consolidation, process reengineering, retraining for enhanced
16 skills, and headquarters staffing reductions.
17 (b) At a minimum, such reorganization studies and plans shall provide that:
18 (i) The administrative head of each employment reduction unit that has a
19 baseline number of positions in excess of three thousand shall reduce the number of
20 management layers to not more than six and reorganization plans for such units shall
21 detail how this is to be accomplished.
22 (ii) Each manager shall supervise no fewer than ten persons, except that for
23 highly technical or non-repetitive functions each manager shall supervise no fewer
24 than five persons and reorganization plans shall justify the necessity for a manager
25 to supervise fewer than ten persons.
26 (iii) Organizational entities within an employment reduction unit that have
27 two to five positions shall be consolidated into larger and more efficient entities.
28 Regional administration shall be consolidated to the extent possible. Position
29 reductions at central and regional headquarters of the employment reduction unit
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1 shall exceed the number of position reductions that are not at central and regional
2 headquarters.
3 H. Implementation, including rulemaking. The commissioner of
4 administration shall provide for the implementation of this Section. The
5 commissioner of administration may promulgate such rules as shall be necessary to
6 provide for such implementation.
7 I. Legislative oversight. The Joint Legislative Committee on the Budget
8 shall oversee the implementation of this Section. Each employment reduction unit
9 shall submit reports at least annually to the committee and at such other times as the
10 committee may require. Such reports shall at a minimum include a summary of
11 findings of reorganization studies and provisions of reorganization plans, an account
12 of positions abolished and personnel expenditure reductions made, and such other
13 information as the committee may require.
14 J. In addition to the information required by R.S. 39:36 and 84.1 and R.S.
15 42:375.2, the executive budget for Fiscal Years 2017-2018 through 2020-2021 shall
16 include a summary of the annual employee and personnel expenditure reductions by
17 department and budget unit since Fiscal Year 2016-2017.
18 Section 2. This Act shall become effective upon signature by the governor or, if not
19signed by the governor, upon expiration of the time for bills to become law without signature
20by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
21vetoed by the governor and subsequently approved by the legislature, this Act shall become
22effective on the day following such approval.
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.
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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:
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(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
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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.
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(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)
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