Editor’s note: This story has been updated to reflect that Louisiana has $18.4 billion in unfunded liabilities, according to the Volcker Alliance. A previous version of this story was incorrect. Daily Report regrets the error.
Louisiana received average grades on a new report card analyzing practices to pass balanced budgets in all 50 states.
New York-based Volcker Alliance, a nonprofit launched by former Federal Reserve Board Chairman Paul Volcker to address government challenges, released the report card earlier this month, grading states on their financial practices in five areas and suggesting best practices for each area.
Louisiana received a B for its use of reserve funds, a B in transparency, a C in forecasting accuracy, a D in using budget maneuvers like one-time fixes to plug holes, and a D in funding legacy costs like employee pensions and other benefits.
The Bayou State received negative marks for midyear budget adjustments and multiyear expenditure forecasts, revenue and cost shifting, deferring recurring expenditures and funding pensions. It received good marks for policies regarding the use of reserve funds, transparency regarding its debt and budget, and revenue growth projections.
Most states skimped on at least one major area of the budget, and some earned nearly failing grades in almost every category, Governing reports.
The average grade earned for nearly all five categories was a B, but states performed the worst in the area of long-term liabilities, averaging a C for their ability to manage the cost of pensions and other benefits.
Louisiana has about $18.4 billion in unfunded liabilities.
