Louisiana Saves $1 Billion by Cutting Government Waste

Louisiana just proved that government efficiency isn't just a buzzword. The state's fiscal responsibility program has identified $1 billion in annual savings without cutting a single service to residents.

Governor Jeff Landry launched "LA DOGE" in December 2024, tasking private sector executive Steve Orlando with finding waste in state spending. The results shocked even the governor himself.

The program worked across 17 state departments to identify unnecessary spending. They found $407 million in workforce inefficiencies, $206 million in overpriced or unused contracts, and $285 million in Medicaid payments going to ineligible recipients.

The Medicaid savings came from simple fixes that had been recommended for years but never implemented. The state started cross-checking residency data from the Department of Motor Vehicles against Medicaid enrollments, immediately catching people who no longer qualified for benefits.

Louisiana treated its budget like a family reviewing their monthly subscriptions. They cancelled unused services, renegotiated contracts, and eliminated duplicate spending that had quietly accumulated over years.

The Bright Side

The savings allowed Louisiana to avoid difficult choices other states face regularly. Instead of raising taxes or cutting services, the state funded food assistance programs during recent federal shutdowns and passed what Landry called "the largest tax cuts in state history."

Roads and bridges are getting repaired with freed-up funds. State services have actually improved as departments modernized their operations. The governor's office reports they've stabilized the budget while moving toward eliminating state income tax entirely.

Orlando, who had never worked in government before this role, brought a business mindset to state operations. His team asked simple questions that bureaucracies often avoid: Is this subscription still needed? Can we get a better price? Are we checking if recipients still qualify for benefits?

The results came from cooperation rather than confrontation. LA DOGE worked closely with legislative leadership, the state auditor, and department heads to identify savings everyone could support.

Of the total savings, $367 million came from Louisiana's state budget, $601 million from federal tax dollars, and $65 million from other sources. Every dollar saved goes back to taxpayers through lower taxes or improved services.

Landry's advice to other governors is straightforward: challenge your department heads to look at where money actually goes. The waste often hides in plain sight, waiting for someone to ask the right questions.

The state plans to continue the work through a reformed Inspector General's office focused on ongoing efficiency. Louisiana has shown that government waste isn't inevitable and that citizens don't have to choose between good services and responsible spending.