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LaPolitics: What are the most common ways that Louisiana local government entities get themselves in financial trouble?
Louisiana Legislative Auditor Mike Waguespack: Some entities struggle to properly fund and maintain critical infrastructure, particularly water and sewer systems, which can lead to costly emergency repairs and service disruptions. Inadequate emergency reserves or long-term maintenance funds can leave local governments vulnerable to unexpected financial shocks. Many of our smaller municipalities, especially in rural areas, are dealing with population decline, which affects their tax base and complicates budget forecasting. Timely financial reporting is essential for identifying financial stress early. Without timely reports, it is difficult for our office to gauge an entity’s financial position accurately. And some entities focus too heavily on short-term needs at the expense of long-term financial stability.
Is there an area where you are seeing noticeable improvement?
I am pleased to see progress in water infrastructure management, largely thanks to the Legislature’s Water Sector Commission. This has directed critical funding toward improving water and sewer projects across Louisiana. We are also seeing improvements in financial reporting timeliness among many local entities, and there is a growing awareness among local officials about the importance of maintaining adequate reserves and planning for long-term infrastructure needs.
Are government officials usually receptive to the feedback from your office?
Yes, for the most part. Sometimes, there can be resistance when audit findings are challenging, but our goal is to provide constructive solutions rather than criticism. We approach everything in a nonpartisan, solution-focused manner.
What is the office’s approach if officials don’t want to cooperate with your investigation?
We always begin with respectful, clear communication. Explaining our process and legal authority often resolves any initial concerns. Once officials understand our role, cooperation usually follows. In the rare event of ongoing resistance, we have the necessary legal tools to fulfill our responsibilities, but our preference is always to work collaboratively.
—THEY SAID IT: “Keep your November open. Course, I told you to keep August open, too.” —Revenue Secretary Richard Nelson, to lawmakers about a possible tax-focused special session in late fall.
Jeremy Alford publishes LaPolitics Weekly, a newsletter on Louisiana politics, at LaPolitics.com. Follow him on Twitter, or Facebook. He can be reached at JJA@LaPolitics.com.
