By Robert Mann
If Louisiana’s economy is booming as Gov. Bobby Jindal keeps telling us, then why is he always mandating mid-year budget cuts and spending freezes?
Friday brought us yet another mid-year budget freeze, by virtue of an executive order Jindal issued late in the afternoon.
A booming economy of the kind Jindal boasts produces ample revenues for government. If businesses are booming, as Jindal assures us, then companies are hiring, payrolls are growing and those new employees are paying more in taxes. They’re buying more consumer goods, meaning increased sales tax revenues and added employment for the companies selling those goods.
In short, a real booming economy produces adequate government revenue. At the very least, a healthy state economy doesn’t force government leaders into constant mid-year budget cuts, garage sales of state assets and late-Friday budget freeze announcements (you’d almost think Jindal didn’t want us to notice that he’d been forced to freeze spending again).
Here’s the order Jindal issued. Many in the press received it, but as of early Friday evening it had not been posted on the governor’s website.
EXECUTIVE BRANCH – EXPENDITURE FREEZE
EXECUTIVE ORDER NO. BJ 2014 – 4
WHEREAS, pursuant to the provisions of Article IV, Section 5 of the Louisiana Constitution of 1974, as amended, and Act 14 of the 2013 Regular Session of the Louisiana Legislature, the Governor may issue executive orders which limit the expenditure of funds by the various agencies in the executive branch of State government (hereafter “expenditure freeze”); and
WHEREAS, underlying assumptions and needs in the development of the current year’s state budget would be altered by a decline in the State’s revenues and the interests of the citizens of our State are best served by implementing fiscal management practices to ensure that appropriations will not exceed actual revenues; and
WHEREAS, in preparation of the budget challenges in the ensuing year, Executive Order BJ 2014-1 Limited Hiring Freeze issued on January 15, 2014, is updated periodically, is related to the Expenditure Category of Personal Services, therefore Personal Services Expenditures will not be addressed in this Executive
WHEREAS, to ensure that the State of Louisiana will not suffer a budget deficit due to fiscal year 2013-2014 appropriations exceeding actual revenues and that the budget challenges in the ensuing fiscal year are met, prudent money management practices dictate that the best interests of the citizens of the State of Louisiana will be served by implementing an expenditure freeze throughout the executive branch of state government;
NOW THEREFORE, I, BOBBY JINDAL, Governor of the State of Louisiana, by virtue of the authority vested by the Constitution and laws of the State of Louisiana, do hereby order and direct as follows:
SECTION 1: All departments, agencies, and/or budget units of the executive branch of the State of Louisiana as described in and/or funded by appropriations through Acts 14 and 44 of the 2013 Regular Session of the Louisiana Legislature (hereafter
“Acts”), shall freeze expenditures as provided in this Executive Order.