(The Center Square) — Since 2022, the state of Louisiana has awarded over $8 million worth of leases for 26 buildings, according to public records from the Division of Administration.
Under a new executive order signed by Gov. Jeff Landry, state agencies will no longer be able to automatically extend their leases without justification.
The executive order, issued Tuesday, mandates that all agency heads must submit written justification before extending, amending, or entering new lease agreements. The move is part of Landry’s broader push to rein in government spending and increase efficiency.
“Fiscal responsibility is a top priority for our administration. Today’s executive order is part of a broader effort to modernize state government operations, eliminate waste, improve efficiency, and ensure taxpayer dollars are used effectively,” Landry said in a statement.
The order also requires state agencies to report all office space usage — including unoccupied or underutilized spaces — twice a year to the Division of Administration. By March 1 each year, the division will compile a report for the Joint Legislative Budget Committee detailing state-owned and leased office spaces, their occupancy status, and the cost of leases in privately owned buildings.
Landry’s directive aligns with efforts to ensure state-owned buildings are used to their fullest potential before taxpayer money is spent on private leases. Agencies must now verify budget availability and provide a detailed cost estimate before securing lease extensions.
With the order now in effect, all departments and agencies are expected to comply immediately. The Division of Administration will oversee implementation and provide information to the newly established Fiscal Responsibility Program.
