"The Blueprint Board of Trustees recognized last fall the state's budget challenges were considerable, and we felt compelled to develop a one-year blueprint that produces savings as well as improves how our state functions and serves its citizens," said Blueprint Louisiana Chairman Bill Fenstermaker, President and Chief Executive Officer of C.H. Fenstermaker & Associates of Lafayette. "We encourage not only thoughtful discussion about these and other ideas, but bold and decisive action to advance statewide priorities that build a foundation for sustainable government."
Unquestionably, some of the recommendations could be considered quite controversial including opening up statutorily protected funds, and reducing 9,486 over two years.
Most of the recommendations are general in nature such as reforming the charity hospital system.
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GENERAL RECOMMENDATIONS FOR STATE GOVERNMENT |
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Recommendation |
Potential Savings/New Revenue in FY 2012 |
|
Open up statutorily protected funding |
$100+ million in potential savings |
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Reduce state workers by 9,486 over two years |
$235+ million in potential savings |
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Reform state employee and teacher retirement systems |
$25+ million in potential savings |
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Be "smart on crime" by revising outdated sentencing and parole guidelines |
$2 million to $6 million in potential savings |
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Subtotal |
$362 million to $366 million in potential savings |
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HEALTH CARE RECOMMENDATIONS |
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|
Recommendation |
Potential Savings/New Revenue in FY 2012 |
|
Implement a Medicaid coordinated care system |
$20+ million in potential savings |
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Reform the charity hospital system |
$50+ million in potential savings |
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Maximize federal matching funds for current state health expenditures
|
$125 to $575 million in potential savings and new revenues |
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Implement a hospital provider assessment to generate new state dollars for the federal match |
$245 million in potential new revenues |
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Strike the right balance of institutional, community and home-based care |
$25+ million in potential savings |
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Subtotal |
$465 million to $915 million in potential savings and new revenue |
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HIGHER EDUCATION RECOMMENDATIONS |
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Recommendation |
Potential Savings/New Revenue in FY 2012 |
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Sharpen the focus on academic performance, and eliminate programs that don't meet acceptable standards |
Millions in strategic reductions to re-invest in higher education |
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Undertake and incentivize structural reform |
$25+ million in potential savings |
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Create management savings and efficiencies |
$20+ million in potential savings |
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Grant more operational freedom to institutions |
$10+ million in potential savings |
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Re-define the role of the legislature in setting tuition rates |
$90 million to $300 million in potential new revenue |
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Subtotal |
$145 million to $355 million in potential savings and new revenue |
Blueprint has spent the past six months conducting research into these and other ideas. The result is an 18-page report that provides an explanation of each of the 14 recommendations and estimates potential savings and/or new revenue generated to help the state close its significant FY12 budget shortfall.
"Our state budget challenges continue to present an opportunity for meaningful reforms in government," Fenstermaker said. "Budget reductions are necessary, and we believe it matters immensely how those cuts are made. Our goal is a state government that operates more efficiently and is more sustainable in the future."
Blueprint Louisiana was established in 2006 after Hurricane Katrina.
