Will Reign in Spending and Protect Essential Services

 

Baton Rouge, LA—Today, Governor Jeff Landry issued an executive order instituting a hiring freeze for the executive branch of state government, with a goal of achieving an annualized $20 million in state general fund savings. The executive branch includes all state government departments and agencies but excludes local government entities. Executive Order attached.

To address the projected fiscal shortfall Governor Landry inherited from the prior administration, the 2025-2026 budget was prepared using a standstill approach, removing one-time items, and incorporating cost-saving efficiencies. On October 26, 2024, the Governor called a special legislative session relative to revenue and finance to address the fiscal shortfall, avoid major cuts to healthcare and education funding, and create a methodology for a permanent teacher and school personnel pay raise. Additionally, the special session allowed the Legislature to find other means of sustainable revenue and enact reforms to attract business and industry to Louisiana and secure long-term economic growth.

The Legislature passed constitutional Amendment 2, but it was rejected by the voters on March 29, 2025.

“To ensure the long-term fiscal health of Louisiana and protect essential services for our most vulnerable citizens, we must take decisive action now to address revenue shortfalls. By implementing a temporary hiring freeze, we will reign in spending, saving an annualized $20 million. This is a necessary step to give the Legislature more options, to prevent deeper cuts to healthcare and education, and to safeguard the future of our state,” said Governor Landry.

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