A record seven local governments in Louisiana are under control of a fiscal administrator appointed by the state, because of budget woes. Legislative Auditor Daryl Purpera says the administrators have broad authority to address the fiscal crisis by laying off employees or raising rates
“They basically have the duties of the mayor and the council, and the mayor and the council serve as advisers to the fiscal administrator, but the fiscal administrator is going to be the one making decisions.”
The municipalities are Jeanerette, St. Joseph, Clayton, Clarence, and Madison Parish Hospital district, along with newly added Sterlington and Bogalusa.
It’s a touchy subject, because the administrator overrides the authority of local, democratically elected officials. Purpera says the goal is to quickly get a town’s finances back in order, so control can be handed back to elected officials in short order, and most cases are not long-term arrangements.
“It can maybe reduced to a year’s time, and that might really depend on the cooperation that is given by the individuals currently there, and by the complexity of the situation.”
Purpera says the longest running case of fiscal administration in the state is Madison Parish Hospital, which has been under administration for three years.
An entity, such as a city, can challenge the appointment of an administrator in court if it opposes the decision, and often those areas are given a chance to right the ship themselves before an administrator is appointed. Purpera says when the decision is made though, it’s rare to see it formally opposed.
“Most of the time the entity knows what the situation is, and they chose not to oppose the court on the appointment of a fiscal administrator.”
The auditor says much of the blame for the small town budget woes can be traced to the gradual depopulation of rural Louisiana. Along with the seven currently under administration, Purpera up to eight more municipalities are also on the brink of getting administrators.
