I do a variation of
Stolloween's recipe, accounting for the fact that I get a ton of rain whenever I start working on paper mache projects for outdoors.
6 cups flour
1 cup liquid starch
12 oz diluted white glue (50/50 water/glue, much easier to mix this beforehand than trying to incorporate the glue and water later)
12 oz polyurethane floor finish
1/2 cup salt
mix until everything is incorporated and smooth
more flour if too wet, more water if too dry
The varnish seals the project while it dries, giving it a safe base for outdoor latex paint if you can't finish the whole project before it rains. I used all outdoor latex paints over the big figure pieces this year and didn't have to reseal. This mix stood up to a Halloween of non-stop rain that included torrential downpours for three hours.
The risk with the varnish as a final seal for the paper mache is that it is super glossy. I usually prefer a matte finish and wind up using many coats of a spray sealer for acrylic paint work.