CUT AND GROW:

Jindal cuts La. budget 25% and sky doesn't fall (Jim Geraghty, 11/06/11, Philly.com)

Privatization played a big role in Jindal's reinvention of state government, with private contractors taking over state-run operations for a lesser cost. The companies often hired the state workers who would often be the centerpiece of opponents' criticism.

His administration privatized the state's Office of Risk Management. Then the state's Division of Administration privatized claims management and loss prevention in the self-insurance program, saving $20 million over five years. The Department of Health and Hospitals privatized six inpatient, residential-treatment programs around the state, saving $2.5 million. Separately, patients were moved from state-operated institutions that cost $600 or more per patient per day to community-based services and private group homes that average $191 per day, saving an additional $23.8 million.

Consolidation was another key element: The state's Department of Revenue shrank from eight offices statewide to three. The Department of Children and Family Services consolidated its offices from 157 to 90, saving a total of $2.7 million.

But some of Jindal's cuts are the old-fashioned kind. The state sold 1,300 vehicles from its fleet of automobiles. Louisiana's Transportation Department shut down a ferry that was used by only 7,200 drivers per year, saving the state roughly three-quarters of a million dollars.

In fiscal 2011, Louisiana eliminated more than 3,500 full-time government positions. Add the 6,363 previous reductions during Jindal's term, and that means a total of almost 9,900 full-time positions reduced since he took the oath, a savings of almost $600 million. Louisiana now has the lowest level of full-time state government employees in almost 20 years. [...]

Jindal's first term was marked by several high-profile crises he successfully managed - Hurricane Gustav and the response to the BP oil spill, along with the Obama administration's six-month moratorium on all drilling in the Gulf of Mexico - but the state's economy has generally chugged along: Louisiana's unemployment rate is 7.1 percent, two percentage points lower than the national average, and a comparably booming economy makes cuts in state spending much easier to take.

Posted by oj at November 6, 2011 8:00 AM
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