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New Orleans: Political Economy of Public Money Aaron Schneider New Orleans Political Economy Workshop 10 th of September, 2010.

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Presentation on theme: "New Orleans: Political Economy of Public Money Aaron Schneider New Orleans Political Economy Workshop 10 th of September, 2010."— Presentation transcript:

1 New Orleans: Political Economy of Public Money Aaron Schneider New Orleans Political Economy Workshop 10 th of September, 2010

2 Describe “satellite” governance Explore in New Orleans Generate hypotheses to explain why New Orleans looks the way it does Move towards transparent and democratic governance

3 Dimensions of Budgeting Comprehensiveness vs. Off-budget, quasi- public entities Transparency vs. Obscure Legitimacy vs. Captured(?) Satellite Governance – Multiple entities of public authority – Inconsistent and obscure reporting – Public finance decisions tend towards narrow, private interests

4 Predicted vs. Actual NO Finance VariableTax RevenuesTotal RevenuesExpenditures Population.704 (.055)***1.78 (.122)***1.91 (.13)*** Area-26.00 (138.74)-69.32 (306.55)-10.76 (316.28) Poverty 13837 (3883)*** 37363 (8582)*** 37044 (8853)*** Wealth17.92 (3.86)*** 41.07 (8.53) *** 39.74 (8.81)*** R2R2.62.68.69 N146 New Orleans Predicted 41096810577751097012 New Orleans Actual 403252946695852828 % Difference-1.8-10.5-22.3

5 Satellite Entities Legal Origin Eg. Charter, ordinance, state law, state Constitution Political Leadership Eg. Mayor appoints majority Fiscal revenue and expendituve Eg. General Fund or earmarked taxes Administrative Regulation Eg. City civil service rules, budget reporting

6 Revenues, $1000s General Fund Official Funds Pension Component Units Noncomponent Public Entities Non-Public Money Public Money 2007389356395703859463938761462358174028 2008401145275539-1559422953021244384185185 Expenditures, $1000s General Fund Official Funds Pensions Component Units Noncomponent Public Entities 2007425915273333512663371181354670 2008462473368751525033503721490384 Assets, $1000s Primary Government Pensions Component Units Noncomponent Public Entities 20077152964667117430986249975 2008-1136242734217106876056949

7 Audubon Commission 1870s Origins in reconstruction era speculation 1914 Legal mandate to encourage private profit 1950s Struggle between state government and city administration 1970s Audubon Institute efficiency, private profit 1990s incrementalist residue in Planetarium

8 Hypotheses to explain satellite governance Efficiency – to ease red tape Incrementalism - because NOLA is old and decisions accumulate Political Conflict – to hide power, privilege from political rivals Crony Capitalism – to facilitate rent for private actors Corruption – to facilitate illegal rents for private actors

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