Latest news with #FiscalResponsibilityProgram
Yahoo
26-03-2025
- Health
- Yahoo
Louisiana Medicaid set to grow under Landry, even as D.C. may force cuts
Republican Gov Jeff Landry's budget proposal proposes increasing state spending on health care by $1.5 billion in the next fiscal year. (Canva image) Gov. Jeff Landry has made public moves to cut state government spending in recent weeks, following the lead of President Donald Trump's Department of Government Efficiency and its dramatic reductions at the federal level. Shortly after Trump announced the creation of DOGE last year, Landry followed with his own government efficiency task force, which is officially called the Fiscal Responsibility Program but which the governor's office has started to refer to as 'La. DOGE' recently. Yet for all of the talk about cost-cutting, Landry's own budget proposal includes one major increase in spending that could overtake the cost cutting measures he has floated. Louisiana's heath care budget is set to increase almost $1.5 billion next fiscal year under the spending plan Landry unveiled a few weeks ago. Medicaid is fueling the growth, accounting for $19 billion of Landry's proposed $21.4 billion health care budget. Medicaid provides government-backed health insurance to low-income families, pregnant people, seniors in nursing homes and those with disabilities. In Louisiana, approximately 1.6 million people, or a third of the state's population, get health insurance through the program. A billion-dollar-plus increase in health care spending isn't unheard of in Louisiana, but Landry's $1.5 billion jump comes at a time when Republicans in Congress and Trump may force unprecedented cuts to Medicaid spending. Louisiana is also running approximately $100 million over its Medicaid budget for the current budget cycle that ends June 30, according to a letter Louisiana's interim health secretary Drew Maranto sent to legislators. As a conservative, Landry was expected to take a more skeptical approach to public health care spending when he came into office last year, especially compared with his predecessor, Democrat John Bel Edwards. Yet Landry's $1.5 billion growth proposal would be the second largest increase in Louisiana health care spending since 2017, the year after Medicaid expansion took place. It's greater than most years Edwards was in office, from 2016-24. The only larger jump in state health care funding recently took place in 2021, when the federal government plowed money into Louisiana for the COVID-19 pandemic. The Landry administration attributes much of his proposed health care increase to costs it can't control. The six private health insurance companies who run most of Louisiana's Medicaid program said they had more money because their Medicaid enrollees used more expensive health care services than expected. Maranto specifically mentioned the rising costs of prescription drugs in an interview Tuesday. Former health secretary Michael Harrington, who held Maranto's job until last week, also said in an interview earlier this month that the state has brought some increased Medicaid costs upon itself. For example, lawmakers and voters approved a state constitutional amendment 11 years ago that requires nursing homes, whose owners are large political donors, to receive a Medicaid rate increase at least every other year. In Landry's latest budget proposal, this provision has resulted in an additional $105.4 million being set aside for nursing homes, which already receive over $1 billion each year. Louisiana also isn't alone in seeing soaring Medicaid costs. All states are seeing Medicaid expenses go up this year, in part because Medicaid enrollees appear to be sicker than expected, according to the Associated Press. 'This is no simple bullet that is going to fix this for Louisiana anymore than any other part of the country,' said Steven Procopio, president of the independent Public Affairs Research Council of Louisiana. Even with a $1.5 billion increase, the Landry administration insists it has taken steps to control some costs in the state health department. They cut approximately $11 million worth of contracts and eliminated almost 60 of the health department's 7,700 employment positions in an effort to reduce spending, according to the governor's staff. 'They seem like they have gotten a handle on things a little bit better,' Patrick Goldsmith, deputy commissioner of the Louisiana Division of Administration, said about the health department last week. SUPPORT: YOU MAKE OUR WORK POSSIBLE But Landry has also made choices that increased Medicaid spending by hundreds of millions of dollars annually. At the urging of state lawmakers, the governor's latest budget proposal includes an extra $258.4 million to increase physician payments for seeing Medicaid patients up to at least 85% of the rates used by Medicare, the government health insurance program for seniors. Harrington and Louisiana Surgeon General Ralph Abraham have said doctors must be paid more to treat Medicaid patients. Currently, Medicaid enrollees have trouble finding physicians because the program's reimbursement rates are too low. Medicare payments are typically higher, and doctors are more willing to take that insurance. The governor also unilaterally raised Medicaid reimbursement rates $22 million for seven smaller hospitals in rural areas, including four owned by Rock Bordelon, a Landry campaign donor and hunting buddy of Donald Trump Jr. Landry increased similar rates by over $40 million per year to University Medical Center in New Orleans. The governor's team has also asked the federal government for permission to raise another physician payment that would allow more doctors to charge closer to a commercial insurance rate for seeing Medicaid patients. This second round of extra physician spending hasn't been factored into the state budget yet. But if the proposal gains approval, it could add hundreds of millions of more federal dollars to Landry's existing Medicaid spending. Overall, Louisiana's Medicaid budget is largely dependent on federal funds. Of the $19 billion Landry has proposed spending on Medicaid next year, $14.2 billion would be expected to come from the federal government. For years, money coming from Washington was less likely to be cut than state funds, but Trump and congressional Republicans are eyeing Medicaid for significant reductions this year. The House GOP is looking to siphon off as much as $880 billion from the health care program to help pay for proposed tax cuts. Republican House Speaker Mike Johnson, who is from north Louisiana, and Trump have said they don't intend to cut Medicaid services directly, but experts say it would be nearly impossible to meet their spending goals without limiting the program. Congress might be able to avoid making cuts to Medicaid directly by transferring more of its cost burdens to states. Louisiana would likely not be able to afford to replace a significant portion of its federal Medicaid money that is lost. By comparison, the total amount of federal and state money Landry intends to spend on higher education, state police, the Office of Motor Vehicles and the prison system combined in the next fiscal year is $5.3 billion. It's not even half of the $14.2 billion in Medicaid funding the federal government is expected to provide. Without the federal money, state officials would have to look at cutting optional Medicaid services, including those for people with disabilities, or lowering the reimbursement rates for physicians Landy is currently trying to raise, among other measures. 'I think states should be very worried about a cost shift from the federal government,' said Kelly Whitener, an associate professor at Georgetown University McCourt School of Public Policy for Children and Families. 'If the federal government cuts Medicaid and cuts Medicaid significantly as they are considering, states are going to be ones that have to make the decisions about what services are going to be cut, what provider services are going to be cut,' she said in an interview. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
20-03-2025
- Politics
- Yahoo
Landry merges homeland security agency with Louisiana National Guard
BATON ROUGE, La. (Louisiana First) — Gov. Jeff Landry has announced a major restructuring of the Governor's Office of Homeland Security & Emergency Preparedness (GOHSEP), placing it under the command of the Louisiana National Guard in an effort to cut costs and streamline government operations. Under the reorganization, Brig. Gen. Jason Mahfouz will serve as interim director of GOHSEP, overseeing day-to-day operations. Adjutant General Maj. Gen. Thomas Friloux will provide oversight and guidance during the transition, according to a statement from the governor's office. 'GOHSEP Director Jacques Thibodeaux took on a challenging role and served our state with dedication under difficult circumstances. We deeply appreciate his service,' Landry said. Landry's office framed the move as part of his Fiscal Responsibility Program, a state-level initiative inspired by the Department of Government Efficiency (DOGE)—a federal watchdog created under the Trump administration to cut government waste and improve efficiency. Landry launched his Fiscal Responsibility Program in December 2024 to audit state expenditures and identify areas for financial optimization. In February, the governor's office announced a partnership with the Louisiana Legislative Auditor to implement efficiency measures and gather input from residents about potential cost savings. Federal watchdog DOGE terminates Louisiana agency leases as part of nationwide cost-cutting effort The Louisiana National Guard is frequently called upon to assist parish governments during disasters, especially in response to hurricanes. They have also provided security support for large-scale events, including the Super Bowl and Mardi Gras in New Orleans this year. Landry said the decision to place GOHSEP under the National Guard will save millions of dollars and strengthen the state's emergency response capabilities. 'As governor, I was elected with a commitment to cutting waste and streamlining government,' Landry said. 'As part of our fiscal responsibility initiative, we've identified an opportunity to save millions by bringing GOHSEP under the National Guard. This move not only delivers significant cost savings but also aligns with my belief in the importance of relying more on our National Guard to strengthen our state's resilience.' The governor's office has not yet released specific estimates on cost savings, but the restructuring is part of Landry's broader effort to consolidate state functions under the Fiscal Responsibility Program. Louisiana Social Security office expected to close this year Guns N' Roses parts ways with drummer Frank Ferrer after 19 years Delta plane that flipped upside down in Toronto showed high rate of descent: report Video shows Connecticut man removed from home where he was allegedly held captive for 20 years Louisiana man killed after car hits tree in St. Helena Parish Florida woman accused of drowning dog in airport toilet after it couldn't board plane Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Axios
07-03-2025
- Business
- Axios
Trickle-down DOGE: Republican states embrace Musk-style cuts
Republicans across the country have launched initiatives mirroring the Trump administration's Department of Government Efficiency to root out so-called "waste" and "fraud" within state budgets. Why it matters: While they cheer Elon Musk's chainsaw, some of those same officials worry how those deep cuts at the federal level will affect their states, which take in more federal money than they send to Washington. Oklahoma Gov. Kevin Stitt, who established DOGE-OK via executive order last month, acknowledged that reality to Politico, noting that as DOGE is "trying to cut $2 trillion out of the federal spending … a lot of money from the feds goes to the states." He suggested state officials can help guide DOGE when considering state aid. Driving the news: Stitt is not alone as the DOGE drive trickles down to the state level. Louisiana Gov. Jeff Landry's DOGE-like initiative preceded Trump's inauguration by creating a "Fiscal Responsibility Program" in December with the goal of downsizing the state budget. New Hampshire Gov. Kelly Ayotte's first executive order established a Commission on Government Efficiency (COGE), "to streamline government, cut spending, and ensure we're doing everything we can to create value for taxpayers." In North Carolina, lawmakers formed an "interim House 'Select Committee on Government Efficiency,'" which is authorized to "look at DEI policies, excess state property, and other potential wastes of taxpayer dollars." Georgia's Senate recently passed a bill likened to a "state-level DOGE" backed by Lt. Governor Burt Jones to curb regulatory burdens. And in Florida, Gov. Ron DeSantis launched a Florida DOGE task force, with university spending a prime target. Yes, but: The Trump administration's slash-and-burn style of budget busting worriessome GOP lawmakers. "If you're making [final] decisions without involving local representatives, you're making a mistake," House Appropriations Chair Tom Cole (R-Okla.) told reporters when discussing cuts to a key National Weather Service facility in his district. Landry and other Louisiana officials asked the Office of Management and Budget "to develop a responsible runway to untangle us from any unnecessary and egregious policies without jeopardizing the financial stability of the state." Several lawmakers have pressed the administration to act with "compassion" and treat the federal workforce "with dignity" as mass federal layoffs take a toll far beyond D.C. State of play: States' initiatives so far have not echoed the dramatic disruptions Trump and Musk's DOGE triggered. Layoffs have hit thousands of employees across the government, from NOAA to National Parks to the IRS, as the administration guts federal agencies and slashes contracts deemed wasteful. Reality check: To make the vast $2 trillion reduction Elon Musk has floated, Social Security, Medicare, Medicaid and defense cuts would mathematically be a likely necessity. And how the federal government does its math — considering tax and spending cuts — could shake up state-level budgets. Go deeper: Trump stares down early economic potholes
Yahoo
06-03-2025
- Business
- Yahoo
Federal watchdog DOGE terminates Louisiana agency leases as part of nationwide cost-cutting effort
BATON ROUGE, La. (Louisiana First) — Several Louisiana federal agency offices are losing their leases as part of a nationwide cost-cutting effort led by the Department of Government Efficiency (DOGE), a federal watchdog created under the Trump administration to streamline government spending and reduce waste. The DOGE website, which tracks government cost-saving measures, claims the initiative has saved over $105 billion across the country through asset sales, contract cancellations, fraud eliminations, and lease terminations. The estimated savings per taxpayer is $652.17 as of March 6. Among the terminated Louisiana agency leases, the largest cost-cutting measure involves the Social Security Administration in Houma, which had an annual lease cost of over $550,000. The agency's lease was terminated as an 'agency-approved lease termination,' meaning the agency itself agreed to vacate the office. The lease terminations were listed on DOGE's 'Wall of Receipts', which details government spending cuts. These include 'Mass Mod' terminations—leases canceled through mass modifications—and terminations due to office closures or agency consolidations. Agency Location Savings Amount Annual Lease Cost Termination Type Social Security Administration Houma, La. $965,564 $551,751 Agency Approved Lease Termination Bureau of Minerals Management Service New Orleans, La. $20,370 $17,460 Termination via Mass Mod Inspector General for Tax Administration Baton Rouge, La. $40,826 $28,818 Termination via Mass Mod Bureau of Minerals Management Service Houma, La. $858,919 $429,459 Termination via Mass Mod Occupational Safety and Health Administration (OSHA) Baton Rouge, La. $109,346 $187,451 Termination via Mass Mod National Oceanic and Atmospheric Administration (NOAA) Baton Rouge, La. $59,251 $71,102 Termination via Mass Mod National Park Service New Orleans, La. $297,208 $46,928 Termination via Mass Mod Indian Health Service-Nashville Opelousas, La. $22,931 $25,015 Termination via Mass Mod Should you expect a check from Elon Musk's DOGE cuts? DOGE was launched in early 2025 as part of a government-wide push to reduce wasteful spending by eliminating unnecessary federal programs, renegotiating contracts, and downsizing government office space. The initiative, spearheaded by Elon Musk in his role as a senior advisor to President Donald Trump, has rapidly executed widespread spending cuts. In Louisiana, Governor Jeff Landry has introduced a state-level version of DOGE, known as the Fiscal Responsibility Program. Announced in December 2024, the program is designed to audit state expenditures and identify areas for financial optimization. In February, Landry's office announced a partnership with the Louisiana Legislative Auditor to implement efficiency measures and engage residents in identifying potential cost savings. 'The state has been implementing DOGE measures since I was attorney general,' Landry said in a post on X on Feb 11. The governor's office confirmed the Louisiana Legislative Auditor will maintain its independent oversight functions as required by state law. Residents can submit cost-saving suggestions by emailing LADOGE@ With lease terminations continuing nationwide, some agencies may need to relocate, consolidate, or shut down operations in certain areas. DOGE has terminated hundreds of federal leases across the country, impacting offices for the IRS, Social Security Administration, and environmental agencies. The General Services Administration (GSA), which oversees federal properties, responded to Louisiana First News with a statement, saying it is evaluating 'all options to optimize our footprint and building utilization.' The agency added that a 'component of our space consolidation plan will be the termination of many soft term leases.' The statement provided to Louisiana First News was the same response previously sent to KNWA, our Fayetteville, Arkansas-based sister station, which also reported on federal lease terminations in its region. Louisiana officials have not yet commented on the impact of these lease cancellations. However, as federal budget reductions continue, additional terminations may be forthcoming. US, Ukraine planning peace talks in Saudi Arabia: Witkoff Jai Lucas announced as Miami's new coach 'The executive has put itself above Congress': Second federal judge extends block of Trump funding freeze House votes to censure Rep. Al Green. What does that mean? Federal watchdog DOGE terminates Louisiana agency leases as part of nationwide cost-cutting effort Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
