Medicaid spending soared. But the feds quit this foolishness, and Louisiana had to come to earth and restructure its fiscal practices very quickly. Louisiana's rainy day fund is a different story. It was supposed to be filled by growth in mineral revenues, but growth has been nonexistent and so has the fund. Louisiana's financial statements have been subject to auditors' qualifications in the past couple of years, but the complaints have not been major.
Agencies have the flexibility to move money around within programs.
Five-year fiscal notes, incorporated into the budget process, are generally accurate, revised regularly and taken seriously. B Louisiana's Division of Administration prioritizes projects and creates a statewide five-year plan. Five-year capital outlay requests are reviewed closely by state staff architects, who make recommendations for possible alternatives. Louisiana is trying to catch up on a huge backlog of repairs. A major roofing program, for example has replaced 86 percent of substandard roofs on state buildings.