Tag Archives: Spending Cuts

Bobby Jindal cuts Louisiana budget by 25%… and gets re-elected in landslide?

Gov. Bobby Jindal
Gov. Bobby Jindal

From the Philadelphia Inquirer.

Excerpt:

One gubernatorial election ended early this fall, when Louisiana Gov. Bobby Jindal won the state’s blanket primary Oct. 22. Under Louisiana’s system, all candidates of all parties are listed on the ballot, and if no one gets 50 percent, the top two finishers go to a runoff. Jindal blew past the threshold with 66 percent.

Jindal’s reelection was unusual in several respects. The only previous time the state has not had a runoff was his election in 2007. He is only the fourth Republican governor in the last 125 years in Louisiana, and one of those four switched over from the Democrats in office. Jindal’s best-known challenger this year was a schoolteacher, who raised less than 1 percent of the incumbent’s campaign treasury. The Democratic State Central Committee declined to endorse any candidate running on its party label.

But perhaps most unbelievable is that Jindal faced no serious competition after cutting state spending more than 25 percent. In January 2008, the state had a budget of $34.3 billion. This summer, Jindal signed into law a budget spending $25 billion. As governors from Harrisburg to Trenton to Columbus to Madison have learned, cutting a state’s budget is difficult enough; doing so without a significant backlash seems a politically impossible task.

A key part of Jindal’s story is recognizing that he took the helm of a state that had hit bottom: Decades of mismanagement and corruption had taken their toll even before Hurricane Katrina wreaked such devastation and exposed such colossal unresponsiveness in state government. The state, recognizing the bitter fruit of its traditions of colorful corruption, was ready to take a chance on a then-37-year-old Indian American congressman who speaks roughly 100 words per minute. The state was willing to try a new approach to governing; how much worse could it be?

Privatization played a big role in Jindal’s reinvention of state government, with private contractors taking over state-run operations for a lesser cost. The companies often hired the state workers who would often be the centerpiece of opponents’ criticism.

His administration privatized the state’s Office of Risk Management. Then the state’s Division of Administration privatized claims management and loss prevention in the self-insurance program, saving $20 million over five years. The Department of Health and Hospitals privatized six inpatient, residential-treatment programs around the state, saving $2.5 million. Separately, patients were moved from state-operated institutions that cost $600 or more per patient per day to community-based services and private group homes that average $191 per day, saving an additional $23.8 million.

Consolidation was another key element: The state’s Department of Revenue shrank from eight offices statewide to three. The Department of Children and Family Services consolidated its offices from 157 to 90, saving a total of $2.7 million.

But some of Jindal’s cuts are the old-fashioned kind. The state sold 1,300 vehicles from its fleet of automobiles. Louisiana’s Transportation Department shut down a ferry that was used by only 7,200 drivers per year, saving the state roughly three-quarters of a million dollars.

In fiscal 2011, Louisiana eliminated more than 3,500 full-time government positions. Add the 6,363 previous reductions during Jindal’s term, and that means a total of almost 9,900 full-time positions reduced since he took the oath, a savings of almost $600 million. Louisiana now has the lowest level of full-time state government employees in almost 20 years.

“You change people’s expectations and you make structural changes,” Jindal said, while racing around the state about three weeks before the election. “The most important is this cultural change, to say government is not the answer to everything. In a weird way, I want the office of governor to be less important than it is. What I mean by that is, there was an old joke that kids in Louisiana don’t grow up wanting to be president; they grow up wanting to be governor. You should want them to want to business leaders or doctors or teachers.”

Some cuts were more noticeable to the public, but Louisianans found shorter hours and workweeks at state facilities more palatable than complete shutdowns or higher taxes: Historic sites are now open five days a week instead of seven, pools at a half dozen state parks were closed on Mondays and Tuesdays this summer, and entrance stations at all state parks had shorter hours. Finally, 54,000 rank-and-file state workers are going without a raise for the second consecutive year.

Jindal’s first term was marked by several high-profile crises he successfully managed – Hurricane Gustav and the response to the BP oil spill, along with the Obama administration’s six-month moratorium on all drilling in the Gulf of Mexico – but the state’s economy has generally chugged along: Louisiana’s unemployment rate is 7.1 percent, two percentage points lower than the national average, and a comparably booming economy makes cuts in state spending much easier to take.

“If you have a good-paying job with benefits, you wouldn’t need the state to do so many things for you,” Jindal says. “You become less dependent, and that diminishes the role of the state and so you need fewer state employees, and it’s a virtuous cycle. You can lower taxes and lower government spending.”

Louisiana is a swing state. If Bobby Jindal can cut government spending in a swing state and get re-elected with 66% of the vote, then we do have hope that the American people will do the right thing. Maybe we just need to hit bottom with Obama so that we realize that competence does matter after all. We have a deep, deep bullpen for future elections. Governors like Scott Walker (Wisconsin), Rick Scott (Florida) and John Kasich (Ohio)would be excellent presidential candidates.  And of course we have Marco Rubio and soon-to-be senators Josh Mandel and Ted Cruz waiting in the wings.

What could Stephen Harper teach Michele Bachmann about winning elections?

Michele Bachmann should adopt Stephen Harper's plan
Michele Bachmann should adopt Stephen Harper's plan

Michele Bachmann is soliciting questions for her townhall meeting on her Facebook page. Please “like” her page and then like my question, so that it will be asked.

The post that she is asking for questions in has this text:

Excited to join Tim Scott for Congress for a town hall live on Facebook from Charleston, SC tomorrow at 7PM ET, where we’ll be taking questions from our community of constitutional conservatives. Have a question? Please ask in the comments below:

My question is reproduced below:

Mrs. Bachmann, in the 2011 Canadian federal election, Stephen Harper, a conservative, managed to win a majority in a country that is only one-third conservative. He did this by creating N-point plans that clearly laid out his plans for each term.

The reason I think this is important is because he was able to neutralize the attacks of the media and the three left-leaning political parties because they were not able to accuse him of having a “hidden agenda”. My question for you is, have you considered laying out a clean, specific N-point plan for what you would do as President of the United States? You could even have 3 plans, one for social issues, one for fiscal issues, and one for foreign policy.

If you like my question, please like the “TeamBachmann” Facebook page, and then go to her post asking for questions, and like my question.

Here are the Harper plans:

2006: (won minority)

  • Cleaning up government by passing the Federal Accountability Act
  • Cutting the GST (the national sales tax)
  • Cracking down on crime
  • Increasing financial assistance for parents
  • Working with the provinces to establish a wait-times guarantee for patients

2008: (won minority)

  • The minister of finance and the Bank of Canada will constantly monitor financial markets and the impact of developments in other countries.
  • The global financial crisis will be discussed at the Canada-European Union Summit, which Harper will attend on Friday.
  • Parliament will be summoned to meet this fall and the minister of finance will table an economic and fiscal update before the end of November.
  • Canada will be represented at the meeting of G-20 finance ministers scheduled for early November in Brazil. Canada has also called for a second meeting of G-7 finance ministers.
  • Government spending will be focused and kept under control as the strategic review of departmental spending — now in the second year of a four year review – continues.
  • Harper will hold a first ministers meeting on the economy to discuss with premiers and territorial leaders a joint approach to the global financial crisis.

2011: (won majority)

  • Creating jobs through training, trade and low taxes.
  • Supporting families through our Family Tax Cut and more support for seniors and caregivers.
  • Eliminating the deficit by 2014-2015 by controlling spending and cutting waste.
  • Making our streets safe through new laws to protect children and the elderly.
  • Standing on guard for Canada by investing in the development of Canada’s North, cracking down on human smuggling and strengthening the Canadian Armed Forces.

Actually, Canadian conservatives are much more liberal than we Republicans are – they are soft on social issues. Harper himself is an evangelical Christian, though, but his hands are tied when it comes to social issues. He tries to support stronger families as a way to reduce abortion and to ensure that children grow up with mothers and fathers. Even Stephen Harper is not able to do anything about same-sex marriage and abortion, which are both legal in Canada.

I think Michele would do well to pretend that she was running for office in Canada, and then create her plans that way. All the conservatives already know that she is a solid evangelical and a Tea party stalwart. What she needs to do is come up with a list of specific smart policies that will win over two-thirds of the independents.

Some things I would like to see: transparency in government, sensible spending cuts, tort reform, cut employer payroll tax to 0%, cut federal funding for abortion/Planned Parenthood, increased tax credits for MARRIED couples, matching grants for states that create voucher programs, etc, a federal right-to-work law, a tax credit, usable at any time in the future, for all salary income earned by young people under the age of 22. Etc.

Paul Ryan: cut current spending, cap future spending and balance the budget

Grown-up Paul Ryan explains the Republican plan to cut current spending, cap future spending, and pass a balanced budget amendment to the Constitution.

So what does Barack Obama want?

“I don’t think he wants to cut spending, and I think he wants to raise taxes.”