In a decisive move to address Louisiana’s ongoing fiscal challenges, Governor Jeff Landry has issued Executive Order Number 25-039, instituting an immediate hiring freeze across the state’s executive branch. The order, announced April 2, comes as the state grapples with a projected budget shortfall that has been a persistent concern for lawmakers and officials.
The executive order cites a series of events that have led to the current financial strain. According to the document, budgets under the prior administration saw significant federal spending, including one-time cash injections for various state programs and agencies. However, these measures have contributed to a bloated fiscal structure, leaving the state vulnerable to deficits. The Five-Year Baseline Projection, a key tool used to forecast the state’s financial health, has consistently indicated a surplus or shortfall in recent years, with the most recent projections showing a troubling deficit.
On January 17, 2024, the Five-Year Baseline Projection was presented to the Joint Legislative Committee on the Budget, revealing projected revenues based on the adopted Revenue Estimating Conference forecast, alongside expenditures for the current and upcoming fiscal years. The projection confirmed a budget shortfall, prompting Governor Landry to call for an Extraordinary Session on October 26, 2024. The session aimed to address the revenue and finance issues while avoiding drastic cuts to critical services such as healthcare for the poor, elderly, and disabled, as well as significant budget reductions for state colleges and universities. Additionally, the session sought to establish a methodology for permanent teacher and school personnel pay raises.
In a bipartisan effort, the Legislature passed proposed revisions to Article VII of the Louisiana Constitution on November 25, 2024, by a two-thirds vote. Known as “Amendment 2,” the measure, if ratified, is expected to raise revenue and address the fiscal shortfall. The amendment was part of the 2024 Third Extraordinary Session, reflecting a collaborative push to stabilize the state’s finances.
A subsequent Five-Year Baseline Projection, presented on January 16, 2025, to the Joint Legislative Committee on the Budget, reaffirmed the budget shortfall, underscoring the urgency of the situation. Governor Landry’s executive order emphasizes the need to “right size” the state’s fiscal affairs, signaling a broader effort to curb spending and reevaluate budgetary priorities.
The hiring freeze will impact all executive branch agencies, with exceptions to be determined on a case-by-case basis. While the order does not specify a timeline for the freeze, it is understood to be a temporary measure as the state works to balance its budget. Critics of the move have expressed concern that the freeze could strain already understaffed agencies, potentially affecting service delivery. Supporters, however, argue that it is a necessary step to prevent deeper cuts to essential programs.
Governor Landry’s office has stated that further measures may be announced in the coming weeks as the administration continues to navigate the fiscal challenges. The public is encouraged to stay informed as the state works toward a sustainable financial future.