Governor appointee reports Lafitte Levee District faces operating shortfall; legislative auditors begin review

Kerry Lauricella, recently appointed president of the Lafitte Levee District, told the joint committee on Nov. 5 that the district’s recurring operating revenues—derived from a five‑mill tax levy—are roughly $170,000–$175,000 annually while operating expenses have historically been in the $400,000 range. He said the district has relied on prior advances, grants and FEMA reimbursements for capital projects but that those sources do not cover routine maintenance and operations.

Lauricella said he hired a CPA after taking the board seat in July, reduced active engineering efforts to two priority levee projects to cut costs, paused nonessential spending and recruited volunteer leadership and pro bono technical support to stabilize operations. He reported the district received an advance from CPRA years earlier and that documentation about certain Cooperative Endeavor Agreements (CEA) and reimbursements is under review.

Legislative auditors said they had begun the FY24 audit, that they are requesting additional documentation and that some amounts and agreements require analysis; an earlier FY audit provided an unmodified opinion on financial statements but the new review is ongoing. Lauricella said the district is effectively insolvent for ongoing operations without supplemental funding or structural changes and entertained consolidation or other arrangements to ensure long‑term operations.

Committee members asked for the auditor’s timeline and for details about any required prior-period adjustments once supporting documents are received. Lauricella said he had put a hold on issuing further checks until the district’s finances became clear and that the board is seeking assistance to document obligations and receivables.

—Reported from the Nov. 5 Joint Transportation, Highway and Public Works Committee meeting in Baton Rouge.