General Expenditures: 1988 through 1997

As shown in Table 2, Jefferson Parish general government expenditures increased by 50 percent between 1988 ($166.5 million) and 1997 ($250.1 million), well below the 57.5 percent growth in revenues over this ten-year period.

This differential led to a 1997 year-end fund balance of $59.8 million. The parish’s year-end fund balance increased by 129 percent from 1993 ($26.1 million) through 1997 ($59.8 million). See Figure C. These funds are largely special revenue funds derived from dedicated taxes and as such may be used only for designated purposes.

More recently (1995 to 1997), the differential narrowed as expenditures grew by 9.6 percent compared to an 8.7 percent increase in revenues. Adjusted for inflation, expenditures increased by 14.3 percent between 1988 and 1997 and by 4.8 percent from 1995 through 1997.

In fact, approximately 90 percent of the parish’s general operating revenues are tied to specific functions leaving limited flexibility in redirecting parish spending priorities. The parish’s dedicated budget structure contrasts with governmental budgets based largely on undedicated or discretionary funds, an approach which allows flexibility but one which can engender a “spend it or lose it” attitude among managers.

Expenditures by Function

The parish’s general government expenditures are categorized by governmental function in Table 2.

Public works comprised 24.1 percent ($60.3 million) of spending in 1997 and remains the parish’s largest single cost center. However, public works outlays made up 26.8 percent of 1995 general expenditures and decreased slightly in actual dollars between 1995 and 1997. Public works includes garbage collection, drainage, road lighting, streets, and parkways. About 43 percent of public works expenditures are for professional and technical services.

As a percentage of general government spending, debt service costs decreased from 26 percent in 1988 to 20 percent of parish spending in 1997. As a result, the ratio of debt service to total general government expenditures has decreased from 11 percent in 1988 to 5 percent in 1997, well below the parish’s bonding capacity.

The parish’s general government expenditures for the public safety function, which includes support for fire protection, ambulance services, emergency communication, juvenile services, and corrections, comprised 18 percent of 1997 outlays. Public safety expenditures increased 65 percent between 1988 and 1997 while total parish general spending increased by 50 percent. Between 1995 and 1997, public safety spending increased by almost 18 percent making it the parish’s fastest growing major governmental expenditure.

Expenditures for general government functions increased by 19 percent between 1988 and 1997, well below overall budget growth of over 50 percent for the period. Health and welfare spending grew by 48.6 percent, and culture and recreation outlays increased by 80 percent. More recently, annual expenditures in these categories have leveled-off.

Two of the parish’s smaller spending categories, urban redevelopment and housing and public transit, grew substantially in 1997. Urban redevelopment and housing expenditures increased by 76 percent, and transit spending more than doubled between 1996 and 1997. In both instances, the receipt of additional federal grants accounts for the increases.