State and local civil servants follow the Federal to a degree. Local gov't employees may be allowed to wear campaign buttons on the job or or otherwise campaign or may not, that would be up to the local or state regulations. Federal employees are more restricted.
The above Hatch Act link describes exactly waht you say, state employees obtaing part of their income from Fed money are limited in political activity too.
But I bet you their are lawyers drafting a suit against whoever deigns to enforce the Louisiana regulations against Lousiana classified state employees. They've been denied the right to undertake a narrow type of political speech while off the job and out of uniform.
And I'd make sure the lawsuit got maximum publicity. Whoever promulagated the regulation was stupid - calling attention to the effort by making it unconsitutional. Sheesh.
Hmm. More complex than it looks. THis is an old rule, dating back to the early 1990's, and according to Louisiana official publications, the regulation is based on a cluase in the Louisiana State Constitution that prohibits state classified employees from engaging in political activities. Political activity is broadly defined as any effort to support or oppose a candidate for election or a political party in an election.
http://www.nsula.edu/businessaffairs/ppm/PersonnelActions/W-ProhibitedActivities.pdf
Article 10, Section 9 of the State Constitution is the base authority. Here is another summary:
http://www.cahsd.org/human_resources/Policies/Restricted%20Political%20Activties.doc
Go here -> http://www.dscs.state.la.us/search.htm and search for "14.1" You'll find lots of hits wehre people were prosecuted for violating the political activity prohibition, so there have already been lawsuits, no doubt. Interesting subject - but it looks like something that isn't Blanco's doing.