Governor Jindal Signs Budget to Increase Funding for K-12, Higher Education and Health Care

Press Release

Today, Governor Bobby Jindal signed HB 1 into law and issued line item vetoes.

Governor Jindal said, "We worked with the Legislature to pass another responsible, balanced budget that reduces the size of state government without raising raise taxes. This new budget increases funding in K-12 and higher education and health care services. Today, we have a booming economy and more people are working in Louisiana than ever before. We will continue to make government work harder for our people at a lower cost to ensure Louisiana remains an environment where companies want to invest and where people want to live and raise a family."

The Jindal Administration has worked since 2008 to make state government more efficient and productive through efficiencies and innovative technology improvements, which has saved taxpayers millions of dollars and allows for more investment in health care services, education and infrastructure.

These investments include a nearly $120 million increase to the MFP (Louisiana's school funding formula) -- the largest increase to the MFP in Louisiana history -- as well as an increase of more than $148 million for higher education to better prepare students for new jobs in Louisiana. The higher education total includes $40 million for the WISE Fund, which will better prepare college students for future jobs in Louisiana and help connect them to quality employers around the state. It also includes more than $6 million in additional funding for Southern and Grambling. In all, total funding for higher education in the FY 15 budget is $2.3 billion -- an increase of nearly seven percent from last year.

The budget also includes nearly $27 million in merit pay increases for state employees, as well as two major consolidation initiatives that will bring significant savings to the state. The first is the consolidation of the Office of State Purchasing and the centralization of procurement in the Division of Administration (DOA). This project is estimated to save more than $1.6 million a year through the continued expansion of electronic payment options for state vendors. The consolidation of IT services into one centralized agency will save another $23.4 million in FY15 by reducing duplication of technology and centralizing standards across the state.

The budget also increases funding for important health care services. It provides nearly $26 million in new funding for individuals with disabilities, opening nearly 2,500 waiver slots for both individuals with developmental disabilities and people who are elderly or have adult-onset disabilities. The budget will also fund care for more of Louisiana's terminally ill patients with an investment of $500,000 to hospice providers. Additionally, more than $24 million will increase the funding for intensive care for children and some adults with autism. DHH will also invest more than $5 million for pre-natal care for pregnant women under 200 percent of the federal poverty level, ensuring proper pre-natal care for those who most need it.

"Thanks to the work of the Legislature, we have a fiscally sound budget that balances strategic spending reductions with common sense, practical solutions that protect important services for the people of Louisiana," said Commissioner of Administration Kristy Nichols. "To continue these types of investments, Louisiana must continue to improve the way we do business -- we won't stop here. We will continue to make government more efficient for taxpayers.

"In total, these investments and efficiencies create a budget that requires more than $100 million less than last year's budget. A more efficient, streamlined government can and will be able to better provide and protect critical services for the citizens of Louisiana."

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