Executive BudgetFiscal Year 2017-2018

Senate Finance CommitteeApril 11, 2017

John Bel EdwardsGovernor

COMPARISON: FY 2016-2017 Budgeted to FY 2017-2018 Recommended

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Total Funding and Positions(Exclusive of Double Counts) (Exclusive of Contingencies)

As of 12/01/2016 Recommended Percent

Budgeted Recommended Over/(Under) Of

2016 - 2017 2017 - 2018 Budgeted Change

STATE GENERAL FUND, DIRECT $9,642.1 $9,469.6 ($172.5) -1.79%

STATE GENERAL FUND BY:

FEES AND SELF-GENERATED REVENUES $2,512.0 $2,576.6 $64.6 2.57%

STATUTORY DEDICATIONS $3,952.6 $3,948.7 ($3.8) -0.10%

INTERIM EMERGENCY BOARD $.0 $.0 $.0 0.00%

TOTAL STATE FUNDS $16,106.7 $15,995.0 ($111.7) -0.69%

FEDERAL FUNDS $12,249.9 $13,743.4 $1,493.5 12.19%

GRAND TOTAL $28,356.6 $29,738.4 $1,381.8 4.87%

Historical Change in Appropriation Since FY12 –State Funds Only

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-$1.0

-$0.5

$0.0

$0.5

$1.0

$1.5

FY12 FY13 FY14 FY15 FY16

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IN A

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HISTORICAL CHANGE IN APPROPRIATION SINCE FY12 - STATE FUNDS ONLY

DEPT OF HEALTH MEDICAL VENDOR PAYMENTS DEPARTMENT OF EDUCATION

MINIMUM FOUNDATION PROGRAM HIGHER EDUCATION EXECUTIVE DEPARTMENT

DEPT OF CORRECTIONS ELECTED OFFICIALS JUDICAL & LEGISLATIVE

ALL OTHER AGENCIES

2017-2018 Executive Budget

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Revenue Estimating Conference Forecast $12,044,300,000Dedications $2,574,700,000

General Fund Direct $9,469,600,000

Judiciary Budget $147,742,671Legislative Budget $64,367,092

Net Available for Operations $9,257,490,237

2017-2018 Executive Budget

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• Costs are designated as Discretionary Expenditures or Non-Discretionary Expenditures

• The majority of Louisiana’s State General Fund budget is considered Non-Discretionary

• Non-Discretionary categories are:

• Required by the Constitution

• Due to Court Order

• Avoidance of Court Order

• Needed to Pay Debt Service

• Due to Federal Mandate

• Needed for Statutory Obligations

• Legislative and Judicial Budgets

• Needed for Unavoidable Obligations

2017-2018 Non-Discretionary ExpendituresTotal $6 Billion

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$4,103,024,001

$4,031,841$325,688,648

$151,166,530

$420,954,123$192,183,739 $212,109,763

$590,233,746

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

$3,500,000,000

$4,000,000,000

$4,500,000,000

2017-2018 Executive Budget

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Net Available for Operations $9,257,490,237

Non-Discretionary Expenditures $6,012,963,448

Available for Discretionary Expenditures $3,456,636,552

2017-2018 Discretionary Expenditures

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• Discretionary categories are:

• Business and Infrastructure• Education• Environment and Natural Resources• General Government• Human Services• Public Safety

2017-2018 Discretionary ExpendituresTotal $3.45 Billion

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$44,015,244

$1,003,139,544

$31,931,522

$154,382,641

$2,071,056,309

$152,111,292

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

Business &Infrastructure

Education Environment &Natural Resources

GeneralGovernment

Human Resources Public Safety

2017-2018 Discretionary Expenditures

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FY 2018 Executive Budget $3,456,636,552

Higher Education $822,846,183

Dept. of Education $126,706,744

Special Schools $40,945,071

Remaining Discretionary $2,466,138,554

2017-2018 Discretionary Expenditures

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FY 2018 Executive Budget $2,466,138,554

Fund Transfers $49,707,502

Dept. of Revenue $31,944,804

Public Safety, Corrections, Juvenile Justice, Local Housing, Military $229,823,584

Remaining Discretionary $2,154,662,664

2017-2018 Discretionary Expenditures

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FY 2018 Executive Budget $2,154,662,664

Children & Family Services $118,197,131

Veterans $4,614,726

Elderly $23,825,208

Remaining Discretionary $2,008,025,599

2017-2018 Discretionary Expenditures

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FY 2018 Executive Budget $2,008,025,599

Economic Development $25,458,933

Culture, Recreation, Tourism $22,847,905

Workforce Commission $6,399,887

Agriculture $18,824,851

Natural Resources $13,106,671

Remaining Discretionary $1,921,387,352

2017-2018 Discretionary Expenditures

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FY 2018 Executive Budget $1,921,387,352

Elected Officials $44,785,772

Division of Administration $37,226,975

Remaining Discretionary $1,839,374,605

2017-2018 Discretionary ExpendituresWhat’s Left!

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FY 2018 Executive Budget $1,839,374,605

HCSD $24,171,275

Dept. of Health $1,800,781,451

“Smaller Agencies” $14,421,879

Remaining Discretionary $-0-

2017-2018 Discretionary ExpendituresDepartment of Health

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Optional Programs, $783,079,270

Mandatory Services for Optional Populations, $204,700,467

Uncompensated Care Costs,

$260,359,572

Medicaid Expansion, $16,026,963

Private Supplemental

Payments, $13,849,951

Medical Vendor Program

2017-2018 Discretionary ExpendituresDepartment of Health

Adult Pharmacy, 121,403,872

ICF/DDD, 85,739,235

NOW Waiver, 166,030,870

Optional ProgramsAdult Pharmacy

Inpatient Mental Hospital

Specialized Behavioral Health

Hemodialysis

Ambulatory Surgical Center

Hospice

Case Management

Physicial & Occupational Therapies

ICF/DDD

PACE

Community Choice

NOW Waiver

Residential Options Waiver

Supports Waiver

LT-PCS

Adult Day Healthcare Center

Children's Choice Waiver

Full Medicaid Pricing

Pediatric Day Healthcare17

2016-2017 Department of HealthTotal Medicaid Program Funding

Hospitals, 1,016,096,724

Nursing Facility, 691,391,407

Pharmacy, 620,202,774

Physicians, 530,443,217

Personal Care Attendants, 305,796,784

ICF/DDD Group Home, 252,584,009

Personal Care Services, 114,846,443

Mental Rehabilitation, 107,196,839

Dentist, 102,479,000

Behavioral Health Rehab, 82,715,313

All Others, 809,770,959

Hospitals

Nursing Facility

Pharmacy

Physicians

Personal Care Attendants

ICF/DDD Group Home

Personal Care Services

Mental Rehabilitation

Dentist

Behavioral Health Rehab

All Others

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2016-2017 Department of HealthTotal Medicaid Program by Region

New Orleans, $907,142,720

Baton Rouge, $821,442,389

Thibodaux, $264,452,067Lafayette,

$580,289,546Lake Charles, $244,107,047

Alexandria, $399,093,815

Shreveport, $544,678,981

Monroe, $414,628,981

Mandeville, $333,169,104 Other, $124,519,264

New Orleans

Baton Rouge

Thibodaux

Lafayette

Lake Charles

Alexandria

Shreveport

Monroe

Mandeville

Other

Full Funding for Agencies:

• In order to balance the executive budget, agencies were reduced 2% across the board with the exception of LDH, which had current year reductions annualized. Higher Education is reduced $18 million in formula funding.

• We need $117 million to fully fund TOPS and GO grants to assist our college students.

• To provide a base increase in K-12 education would cost an additional $75 million.

• State employees deserve a raise – this will cost $24 million.

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Items Recommended for Restoration in the Event of New Revenues Being Recognized

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Full funding for TOPS * $81,862,855 Performance adjustments for state employees * $23,862,870 Restore funding for LDH and public/private partnerships * $91,691,587Full funding for agencies * $48,058,018 Opening of Acadiana Youth Facility * $12,069,256 Tourism funding * $4,500,000 Match funding for DOTD $43,200,000Funding for technology projects $10,000,000DCFS caseloads, including 187 positions $4,653,212Corrections/contract rates for private prisons $10,872,890MFP 2.75% base increase $74,954,042GO Grants $34,800,000TOTAL $440,524,730

*Included in Continuation Budget, i.e. cost of continuing current activities in next year’s dollars.