News Release

For Immediate Release – February 25, 1999

Contact: James C. Brandt, President & CEO
(504) 525-4152, ext. 12

BGR Reports Good News, Challenges in Review of Jefferson Parish Finances

A report released by the Bureau of Governmental Research finds that Jefferson Parish government’s fiscal status is good despite the parish’s stalled population growth and level per capita income figures. BGR also concludes though, that while revenue growth outpaced inflation in 1998 and the parish has an impressive "rainy day" fund balance, parish revenue growth in the longer term should be viewed in the context of a region in social and economic transition. Leaner times may lie ahead.

The report found that between 1988 and 1997, growth in parish revenues exceeded expenditures by 14.5 percent leading to a healthy 1998 year-end fund balance of about $59 million. Conservative revenue estimates and tight spending controls practiced by the parish’s finance and budget staff, according to the report, have helped build this reserve. But Jim Brandt, President of BGR, cautioned that "the great majority of these funds are legally dedicated to specific parish government departments and functions that limit the ability of parish officials to make substantial changes in spending priorities. The parish’s undedicated or discretionary fund balance entering 1999 is about $4 million dollars, less than two percent of the operating budget."

Although 1998 revenues exceeded projections and the unemployment rate is low, the BGR report describes a maturing Jefferson Parish economy impacted by an evolving regional setting:

• parish population declined 1.1 percent from 1995 through 1997 and is unchanged in 1998. Developing suburban areas beyond Jefferson are attracting parish residents.

• income from sales tax, long the parish’s leading source of general government revenue, declined by 4.9 percent in inflation-adjusted dollars between 1994 and 1997.

• sales tax revenue is very sensitive to changing economic conditions. At present, the positive effects of strong national and regional economies are boosting tax proceeds, but as the economic cycle eventually takes a downward turn, so will parish revenue.

• absent future growth in population and per capita income, or new millages, property tax income, 32.5 percent of expected 1999 operating revenue, may slow or level off over the next few years.
• if parish per capita income declines, gaining voter support for renewal of existing millages may be more difficult than in the past. Adding new millages and other taxes to support parish government would present a significant challenge to parish leaders.

"Following years of population and economic expansion, much of it at the expense of the New Orleans economy, growth in Jefferson Parish as in other once-booming suburban areas, has leveled-off", according to Brandt. "Regional cooperation, planning, and a continued good working relationship between the parish council and the administration can enable the parish to grow as part of an evolving regional economy," he added.

BGR is a private, nonpartisan, nonprofit citizen-supported research organization founded in 1932 and dedicated to informed public policy-making and the effective use of public resources in the New Orleans metropolitan area. Richard H. Brown was the principal author of this report.

Additional information about the report or BGR may be obtained by calling 525-4152 or by visiting BGR’s website at www.bgr.org.u

For a full copy of the report please follow this link.
Jefferson Parish Governement Finances

Top of Page

Send mail to research@bgr.org with questions or comments about this web site.
© 1999 Bureau of Governmental Research. All rights reserved.

BGR assumes no responsibility for content outside the domain bgr.org.