State Agency Heads Directed to Prepare for Possible Mid-Year Budget Cuts
Gov. Edwards Signs State Budget to Preserve Critical Funding During the Covid-19 Pandemic

Baton Rouge – On July 8, Gov. John Bel Edwards announced that he has signed the
state’s budget for the FY 20-21 operating year, preserving funding for critical health
care, workforce and education services that are needed during the pandemic, especially
as new COVID-19 cases rise again as school systems prepare to return to campus
in the fall, according to the press release from the Governor’s office.

Additionally, the Governor Edwards has ordered cabinet agencies to prepare for possible mid-year budget cuts by sequestering at least 10 percent of their budgets, which he also recommends for the judicial and legislative branches.

He will also issue an executive order to freeze hiring of state employees.

“Right now our budget is in a far better shape than we could have hoped just three
months ago, with funding for critical services in place as we continue to respond to the
COVID-19 pandemic and see case counts as well as hospitalizations rising,” he said.

“I have directed state agencies to prepare for possible mid-year cuts and, we will continue working with the Legislature to make any adjustments that may be necessary this fall,” Gov. Edwards said. “While there are cuts in the budget, federal CARES act funding allowed us to avoid making them even more catastrophic. In addition, we were able to invest CARES act funding into programs for local governments, aid to businesses and direct payments to essential front line workers.”

The Governor also vetoed language that cancelled meritr aises for classified state employees

Gov. Edwards vetoed a provision that impermissibly delayed pay raises for classified state employees and other provisions that sequestered funds appropriated to the executive branch, but not funds appropriated to the legislative and judicial branches.
He also vetoed more than $9 million in
new spending, as well as a provision
contrary to Centers for Medicare and
Medicaid Services guidelines that would
negatively impact the Louisiana
Department of Health and require the
expenditure of more than $10 million of
state general fund plus $32 million of
federal funds.