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This Garland. Very busy show -- them equivalent of the good thing we duo would get stricter first just my guess who's using limited time. I have a number of course and we'll talk about the John Kennedy proposed sixteen. Ideas of cut.
We're looking through three billion dollar. Budget deficit next year here's the way to duly went about two and a half billion on let me hear. Start we one of them that are bred to respond soon. Eliminate 10% of those 161000 consulting contracts in the state.
Ago and so I mean just so you know -- know about sit down with a -- won't back end up back and got two weeks ago. And in kind of begin that we work to solicit ideas and talk with him and and it didn't. Sort of global perspective that in Detroit and and obviously we agree with in the nearest point so we always treat that side of government took. And I respect the treasure but to reality that is. We have in front of -- real problem that's gonna take a lot of work to get -- but let's start -- 10% of state contracts so here's here's the reality of it. So they did they say that there are about 161000 or so contracts don't -- what you have to do you have to kind of a bundle it. They're really about 3009 under contract. Many of the things that show up on our -- tracks system which is basically you know the continent how we -- a lot of our data. A lot of the contract give an example. Contracts we have put Katrina Rita. We really do cooperative endeavor agreement with the city of new loans with. Jones redevelopment authority which same minority -- Cameron parish went to a number. A parachute. And so those cooperative endeavor agreement shall this contract. So the real number -- contract is really about 3900. Herself. So they're not -- that's not an accurate number.
Here if you're throwing cooperative development is that somewhere near 161000.
Yeah and that he -- throw everything in that we do want to recruit and -- well I mean the reality of it is -- and over and what we have done all we do before the budget cycle is we go -- and we renegotiate contracts last year. Alone we saved about -- 42 million dollars.
But on this one out of the 161000 or somewhere near the world community is it possible to eliminate 10%.
Well a lot of which just passed through I -- again insist they just pass through dollars like pieced off -- we have to so that means you can't. You know I tried anywhere it makes sense to cut I mean now what we have done as we get back to renegotiate contracts in the we push on agencies to make sure. They need to contract if it's general fund money coming.
You don't really -- it was 750 million dollar --
Oh no not not not at all in fact like this that we stayed about 42 million dollars last year. By going into renegotiating contract that's what you focus on. Now I -- and -- Italians that whether it's state general fund under federal dollars we always pollution probe benchmarks we push for savings and within those. It's and it's.
Contract and I got to do it looks cool to know when 202 please save jobs per 101000 people here in Louisiana. A 143. Of -- eliminate 5000 positions each year for three years by not -- and 13 filling the 13 of the job vacancies. Possible.
okay so here here's where its treasure we have to have a conversation about turnover for example. We would the work they've done is they've looked at you know the agencies with the highest turnover rate and mean you have to you have to kind of look at it in sort of strategically we're -- we're not shy away from cutting jobs. Since we've been here we've reduced and a reduction that 8008 and seven times. Positions that's about nine point 7% over the last two and half years. And I will tell you that we just got to it was 106 million dollar reduction we cut 523. Additional jobs and have no problem whatsoever reducing the size of government. But what we've got to do we've got to make sure we don't crash certain systems and a good example is the high turnover rate -- department of corrections to. The high turnover rate -- health care services division. In our -- offices citizens would development disabilities. Endanger agencies with very high turnover rate in the reality that is if you cut out of those agencies to literally. The department of corrections would have to start releasing prisoners. And the federal government would actually put it receivership. We would have to close tie veterans' homes we're not gonna do that this smart way to do this is -- is to look at things that we don't need to do anymore. And that's what we're trying to do so. We agree with the treasure that we need to reduce the size of government we're doing that we're focused on creating something I think what you see gone out of the FY twelve budget. It's something -- says this is what state government needs to do in this -- it doesn't need to do anymore and they are other more efficiently used to do it that's how you get -- And so do we have the same go that is shrink the size but I think we go about it dear.
Why aren't -- number three of we have according to the opportunity. One manager per return workers. -- in Texas and Iowa as one manager for every ten workers. 22% Louisiana State government managers supervised one employing the average managers supervisors only four.
Anything don't don't disagree at all there is no doubt that. What we but we'd come -- was a system we didn't -- many more managers and -- police. And we all agree that you know there's probably -- one to eight is about where you need to go in the best place where that transformation is taken place is in department social services. Or Kristy Nichols who took my old job as as deputy chief of staff. Would you that the partisan or social services which is now meant in that department of children and family services and cut out. Meany middle management jobs and she has transformed the field offices and so again. You know there's a way to get there and what we're trying to do and -- what we've done what the FY twelve budget disable our managers -- You're gonna transform you have no choice if we need to do more with less and that means expanding out dead in that span of control which makes sense and still. There's no doubt about it that the that he -- to -- managers but again we've we've begun to do that even in the division administration this year we're. July angle fifteen employees where we had to do a very inefficient organization and we're using this as an opportunity. Two to literally take a look at anything that looks cheap and efficient look at anything that India has what to -- managers too much you know. Too much. Overhead and begin to reduce that I don't disagree within the --
Let me know when we take record breaker poll and we'll come right back -- talk -- water commissioner -- administration under governor -- Version.
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What -- home videos extreme ideas that Treasury Secretary John Kennedy -- come up with duke cut the budget. The man was kind of in charge Joba leaving -- cutting the budget -- Paul ray borders should really do -- come on the show and talk. As much as time alone and audible book -- go back to that old when ask -- symptom we're actually you total sleep budget does it when you're 29 billion.
Right right now go on the total state budget to run -- and about 25 point five billion dollars and it's important whose net that's total means of financing that everything we get -- general fund where we're talking about the budget cuts. About seven point seven billion and I think it's important to remember and -- it talked about this and detailed from time to term. Worm over four billion dollars that is protected to -- called statutory dedication to.
And that's exactly one of them wanted to ask him for because we hear it -- From legislators from the governor in particular from the media we have to cut hospitals we have to -- higher education. Because everything else is constitutionally protected that's not true as.
Well me uniformed four point four billion dollars of that state general fund is there it is that is actually dedicated. It's a long ways includes porn. Oh well I mean -- that the challenges I'm sorry it took actually about 22. Point seven billion. But -- to point travel which can remember what store in port two points or limit immediately started over duke. 125 point five billion dollar. The budget and debt 25 point five billion dollars is. A lot of federal money that goes into an vetoed just -- You like the department health and hospitals for example when Medicaid program.
Those -- deliberately -- if you don't mind because I read in the paper we use little lot of this is federal money that's not applicable. But I do little -- from wrong here. Division administration -- your division. You play and put a 147. Million dollars of the stimulus from the stimulus from the governor Jim Wilson didn't like. For a local. School districts. And then remove the same amount of state general fund money to pay for over items. So at least 68 million of the print upstate funds will be used for higher education there was another 68 million. In college shelter -- like tuition and fees. Will be held from this year enrolled in next year's budget the -- like a very easy way to use restricted funds to preempt state park.
Those are those are those are in a federal dollars that we god has part of the these candidates called energy jobs and and so what we decided to do was push them money in the FY twelve so that. We we didn't try to mitigate cuts to higher education we think it's just the -- fiscally responsible thing to do the right way to do it. The challenge for us is that if you looked at in this things that you could cut from. And that's seven point seven billion dollars as it narrows quite a bit we had a bill last year that would of allowed us. To continue tapping into it could actually constitution protected -- trust funds. Then these forward professorship for example. That's un had about a billion dollars and we didn't wanna -- the -- we basically said look during a tough comments as you know -- talked about it many times. Oh we got this incident we got a lack -- stem to star the punitive -- replaced -- dollars. Got this in a federal medical systems percentage program that's been skewed on this becomes a Q what happened with Katrina Rita in the federal government. Not recognizing that -- formula because really that's what needed that they really needed to change the formula. On the way to solve the Katrina Rita Brantley came into into the road home program. And so here we've got sort of this perfect storm that occurred. So. We.
Do this sort of story there is controlled complicated. And I'm confused. So let me go back this is my understanding tell me where emerald. Sure okay let's say you. I've read many tons of sporting a tornado don't little accuse your figured 25 and have billion dollars. For the a state to a portrait Louisiana loosely put on what until what what model researchers -- we get three point nine in the billion dollars constitutionally protected 3.3 billion that is elementary secondary education. And and 200 million is just that. And is liberal.
having so that the through their 3.3 billion dollars agenda in --
Isn't that the only constitutionally. Protected area.
Well there are some trust -- you know there there isn't there are some trust funds that are constitutionally protected as well so much as. Look it over billions of -- well but about two point seven. So leave you which you have to be careful -- and again last year we we actually ran with a bill. That would have brought distributed to the taxpayers that would of allowed us flexibility we it would -- everything -- I don't tell you that. Yeah association business and industry actually came out in a post an honest. Because they were not concerned about governor general that they were concerned concerned about in the next you know the next governor. Whether it'd be fiscally responsible not the world we -- and -- it triggers employees. Then allow mr. a tough -- like we're having right now to get into some of those dollars to mitigate they'll call upon that mitigate a -- higher education. --
It was -- the part that that I did confuse let's lips say. -- two point seven constitutionally protected trust funds now are up to. Five point so let's let's round it -- six billion. We're still. -- and nineteen billion dollars. That seemed like it's not constitutionally protected. Why isn't always. Hospitals. Health and higher education that's the only thing we can --
All of these and look for example Department of Transportation development has very little general fund money at all I mean very little very little general fund money itself federal dollars. -- it's actually transportation tax dollars. It is that in taxes that are -- likely go to transportation doing road.
But I think I give you pretty good example of where it's it's. Fairly easily from what you guys are doing to transfer federal plunged to state.
Well -- and again and make the department changed station developing new development almost strictly pundits and taxes they go to build roads. Continued in administer this program -- what we tried to do department -- petition you can hear more about it. It is clearly -- out that department so that more dollars go to building greater extent to administration and leading up -- management side. -- department Obama equality is all fee based and some federal dollars. In so you're programs are -- clearly -- regulatory programs that industry pace for. He wouldn't cut there's percentage that you it would -- wanted to do was make sure it's a patient to you don't have to race -- So there are numbered now into the division administration is GNU general fund we just cut in new. The four point four million dollars in laid off about fifteen strokes. The department to get more efficient. And so world it is the big challenge for the division were controlling it seems so you. He beat you you'd have to figure a way to get more efficient we're privatizing. The opposite risk management we're looking at other. Efforts to privatize that we get more efficient. And the way we -- think there's there's no doubt the private sector can do things and you know obviously much more efficient mistake I mean I believe that in. Potential and -- we're also reducing our vehicle -- we've had. Reduce them by about a thousand vehicles. And so we're gonna continue to do things like that to drive down the cost of government that's our -- were not raising taxes. And who either one of the things that we just -- they would respect our education is the credit act Delhi increases tuition but it also requires. It's much more value added in much enhanced performance measures they'll continue to that go to market based tuition they want to the stage we're gonna get to place. Where to issue will be market based. And meet new people will be able to make choices but I defeat and that's where we need to had mistaken but I mean obviously. What we wanna do is create a government that's sustainable. Quantity it does it -- to raise taxes but one that can provide services group who that you need to provide all needed.
We're born we're running out of time I -- you've got limited time and either ask your favorite -- These succeed you know items obviously we can't get to -- but you obviously have stepped up what happens here. Is is I think -- got a pretty good -- often audience because we get emails from all over the country. We sit here and I talk often when John Kennedy and soon be forgotten a leaves room cipher. And we put out radically different message from what you're telling me today how about. If I send you your -- these sixteen and items that the Joan has proposed and in -- what you're telling you on the first three. Why they won't work or which ones do who owns which portion of it works. And we can disseminate because what the public hearing. Is not a pitcher you're putting everything UK and they're hearing that. You're just like -- say we have cut dialysis -- give me a billion dollar that's what the perception of how -- We send this to you respond to it more than happy to have -- mirrors many times -- likely or I'll just read your responses.
will be happy to do that I mean look this is about. This is about providing leadership during a tough time and -- I appreciate the opportunity come on our show and I would appreciate the opportunity. We'll continue in our interest is sixteen items because. The reality of it is I think we all agree that in new government in Louisiana is not sustainable percent of China's biggest there's just no doubt about it and we've got to do things differently. Do we try to do the beginning of the end this administration and not sequential results in reduced continue to reduce the size of government and that's what we're it's --
Let's let's let's put some meat on the bones so little bit of -- disseminating incorrect or or not -- the information. We can use a platform where none out a model to attack cured legislator or whatever but I've sent over the years. We've had some strong allegations come under a -- a prime example every year we say. This is just smoke and mirrors and sure enough we don't nearby hospital serving up sure enough we don't have -- college shutting out.
Which -- are okay along and that ridge. It was a right decision to.
May well that that was all just budget and they're there were a number of things are ruined from my point is. We we share one thing we never see the results of that let's let's have a conversation from both sides and -- disseminated I guarantee.
Chairman I think it's a good time to do it and I think it's time to. Have a real conversation that's sort of told to treasure and -- As well mean that the that this is a great place for us to talk about ideas to to -- public here what is happening and so they we have. But a lot about -- transformational ideas in place and we're actually build them into will be happy.
That sounds terrific usual if we can communicate with -- all Alaskan I appreciated that -- actually thank you don't Paul remark commissioner of administration generally the administration. Common -- back. -- explained it very succinctly hopefully this is not a so. I would have John Kennedy and CB for -- and to join me not to just saying Nana Nana boo -- Paul Rainwater in general this is just get him to respond. Toward bringing water send in the reason that those are our state officials singing. Incapable. Of getting together and holding conversations like this when. Where they come out of Bloomington and -- Susan can we agree 117 intended -- the other you're the reason was so we're trying to. Public service were we get we get down to the facts of what can be done John Ortiz --
plants -- with the F and I first I really appreciate all come due to -- on I have.
Mad and we're gonna continue to -- can -- and I thank -- for his service.
And then the reason I've rescued -- and the news. We've talked to legislators. That say welcome come on yeah but the meeting for the job you always get and they have. And I know you've not withdrawn only to bring in water but there apparently. Are not responses to everything you soon and right so my thought was okay. We've at least heard some of the huge response to roads and should go.
Well I love this approach let's start with the contract. I'm looking at a report that was put out on November 8 and this year few days ago. By the legislative fiscal office which is independent of me an independent of a -- on the governor who worked the legislature I'll read you what they site. Under that then legislative fiscal office says quote the total number of active active contracts existing in this state is unknown.
We do know that as of February 10 2000 can't we have nineteen towels from 580. Land active contracts.
With a total value of seventeen billion dollars.
But that doesn't include contracts and higher education. And the health care services division -- issue and number two.
I'm suggesting we cut out 10% of these contracts that are -- are.
Let me give you some examples. These are actual contracts that I would cut. Here's one with a California company.
Contractors. Can provide program -- students. To learn valuable social skills to organ match play their recess and lunch -- Here's another contract to promote safety belt and show our strength usage among the Hispanic population. In the wrap each pair share. Here's another one contract to provide diversity training to go show up supervisors and managers. Another one.
Contract -- sponsor. Chimpanzee. Discovery day is involving broad media attention to observation of chimpanzees.
And a spacious forestry have a --
New cereal and -- idea won't go back for -- at a petition you and actually in your sixteen points and says hey let's cut 161000. Consulting contracts now. You're put noting gimme that again that civil we actually have 70000 plus.
According to legislative station clock and we -- still isn't -- Paul may not insane this report in fairness to ball -- but they say we don't know how many contracts we have.
Because because higher education in -- issue health care plans and solutions division is on a different accounting system but they didn't know we have at least. 191500. In eating and active contracts. With a total value of seventeen billion dollars.
Okay now Paulson knows they have 3900. Contracts. But they're they're -- in their development with parishes. In the show a slew of passover. And they've already have been negotiated renegotiated. Some of the contract -- 42 million dollars. Well the 3900. Figure.
Right I heard policy that in the end and I respect his opinion on his disagree with it. And regardless of how many we -- I'm looking at the legislative fiscal office but maybe they're wrong I don't think so but maybe they are.
What we need to do is take every one of these 30101000. I think is coach and a sixteen to 20000 contracts. And go through each board. And the question we need to ask ourselves.
Is that the money we're spending on this contract. More important than our priority should we say our parties are health care and higher education and Roche. If you look at a contract. -- want to promote safety -- child restraint usage among the Hispanic population in Iraq each pair share a war of --
Are -- to get copies of bulletin I knew everyone. Charlotte if you -- apologize charmer little short and -- should be wanna come back. Don't pull remote versus. Nodded toward the toward -- billion dollar budget 25 and a half billion dollar budget. Seven point seven billion is in general fund. Two point seven billion their crush wounds that are constitutionally. Protected or on top of before doing that are constitutionally protected when we get to respond about when we come back.
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Are welcome back we've got to and John Kennedy should treasures CB production on. Oh we had a interview earlier with the Paul Rainwater commensurate administration and what compliments of Paul for calling him in responding that's the finger have been complaining about for five years that. John Elliott a Symbian a regular basis give you information. That is pretty and inflammatory book club almost always turns out to be true and the son Paul has decided to join in the debate and that's what the system not an attack on Paul. Logitech on John to introduce CB it's an exchange. Of ideas. And the best -- brushed against. The two were very tough goal CBS terror. One has poll about the constitutionally. Protected money. You said actually the budget is point five and have billion rather than 28000000007. Point seven in the general down.
said no -- 22 point seven billion later. And and and we found out from and this is a good thing for the state treasurer of the way you know but.
As as I recall.
Treasury can -- be. The that legislative staff says this state budget is twenty -- and be in at a lunch we should point yeah.
26 point that's correct.
Current. And what did you take from the interview him we still saying. Virtually four billion that is the only thing that's constitutionally protected he mentioned the two point seven. Billion dollar trust fund its constitutionally. Protected he mentions seven point seven billion Dollar General.
Yes we can still continue playing playing playing time because the -- water. Has spent and the -- to treasure to confirm any of this. He seems to be mixing up two different ideas. What I have been known you show talking about it numerous times is what is protected from being cut. In the constitution. That is. Three point nine billion dollars of which 3.3 billion is the minimum foundation for iron approach Elementary and Secondary Education. 200. Plus million. Four debt service -- Which is in it and the treasury office and about 200 million for. Police and -- Supplemental -- that that heats up most of them. What he's talking about about those two trust fund is tobacco and promote thank. Isn't money. Not agencies that are protected those are dollars. That are put that are set -- all the people of the state of Louisiana. Because they don't want it spent. Except -- limited life. That has nothing to do with protecting an agency from being cut down a mountain overlooking an exceptional correct. So that we still back to what can be cut and still. That is three point nine billion dollars. Of which. Most of it is the Elementary and Secondary Education funding that cannot be cut.
And just volumes acted out of whether it's. 26 being in our.
Our 24 B and are the latest figure 22 billion dollar budget was probably need data show. Just to get a meeting of the -- I think the budget.
But this this this is a prime example woman talking about. When you look at the media reduced except. What everybody's in the position of authority says in print it or say that or broadcast some. And what we're looking at -- 26 billion point five and have billion point 82 billion for bill. And and we're gonna go and we're gonna go get the figures and we're gonna -- follow what is this in blood Paul coming on in the new guys coming on. It's not serving -- a fist fight for ratings it's setting up. The ability of the -- meat on the screen. We're gonna have this knowledge to understand it. In the end it's it's a for the light told me I don't understand why this and done on a regular basis.
for your thought gore when you're -- worse about this edged towards the dedication. Because Paul made a good point. He agreed -- something it's the biggest talked about for a long time let's put the constitution aside for Shaq. We have 300. Special phones that the legislature has set up. For -- org.
Into which money is dedicated. Text dollars automatically flow into those farms. They're not dedicated to the constitution they're dedicated by the legislature with the majority vote. At any point in time we will have between a billion and for rebate in dollars in those --
And reports reviews continually been talked.
I'll try and and you don't have to change the constitution. To free up that money. The legislature voted by majority vote dedicate. They can aren't dedicated majority vote.
Is that called the statute thing that we can go out and about.
dedicated money we did that in 1988. We had at that and we had to undergo the spartans we have a budget crisis. The legislature came here and -- and reduced them to seventy.
Since -- him by a simple majority vote yes. No constitutional. Amendment.
There's some of the -- you're not don't want under the dedicate. If for example up. A business trip and a group of businesses has decided to shelf tax themselves in order to give government money.
In order to provide a service that you take those off the type. But but the majority -- not like so when someone says we have to cut Harriet in health care. Because of the constitution that's just not accurate --
If we if we don't get anything else done gentlemen. If we just get that point to the public supports the media. Discharged reporting that porcelain legislators. Since upsetting and make -- world world and our way. To understand what we can do in again let's say to everybody out there I truly don't think pouring -- wants to cut health and education. I'm certain CB and in John don't. But Symbian Jarden. Have been giving answers or at least hey where is John always preferences. I don't know if I'm correct I'm unwilling to get correct didn't. But -- we take a look at this in this is the first time. We've had anybody in a position where the legislature -- the.
Administration. That's again I'll take a look guys I appreciate you joining me include. Good. Good good good until you can give me a couple more minutes and field -- they don't really appreciated. If anybody's got called boom. Questions for CB and job. You -- conducive to a woman subtly put in particular 01 CV until the beginning -- the -- the ball. About the -- medical decisions --
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Dr. John Kennedy. Remarkably few more minutes to continue discussion about an interview with the commissioner of administration Paul Rainwater -- I know I view or members yourself from listening anything served you're more than welcome to call back decision oddly enough. There's always bring mortars session it's it's more. Thank you for coming on thank you -- thank you for beginning the conversation. But. Ordered to get more opinion from John. And embarrassing be as to what we should during the interview and this won't -- well hopefully. A platform. Or we can talk to be administration and legislators. And Duncan DN -- about what's coming up in the legislative session. Waiting for and sort of waiting for them to compete and go across the board cut. This is doubled up -- think -- okay.
