Budgeting practices and experiences inlouisiana: From the traditional 1990s to the dramatic 2000s

The story of budgeting practices in Louisiana strongly resembles its political history. The last decade was no exception. The relatively peaceful beginning of the decade was followed by two major natural disasters in 2005 − Hurricanes Katrina and Rita, which suddenly changed the economic outlook of the state. The disaster was followed by a global boom in oil prices which benefited Louisiana greatly. Then, of course, the Great Recession hit. The immediate consequence was a projected budget shortfall of $1.6 billion over upcoming fiscal years 2011 and 2012. Such dramatic events create a perfect opportunity for understanding and analyzing Louisianaʼs “innovations” in the area of budgeting and financial management. Furthermore, the analysis of these developments is enhanced by the multiple perspectives of various participants with intimate knowledge of the political processes and mechanisms employed by the state in its dealings with consequences of the Great Recession.