Introduction

Presented in this report are four dedicated property tax millages up for renewal in the March 27th election in Jefferson Parish. BGR takes no position for or against these propositions. Our goal is to provide the public with a brief description of the services to be provided and the estimated costs if the millage proposals are approved. All four of the propositions provide for the continuation of basic services such as public transportation, recreation, and fire protection at existing authorized millage levels.

Though the millage proposals themselves are routine, their combined presence on the ballot raises a broader issue: Is the special taxing district revenue structure, which is the foundation of Jefferson Parish government finances, the best way to fund local government services?

The parish is overlaid with a patchwork of 31 special taxing districts, each tied to a “special revenue fund”. Special taxing districts can vary in size from a few precincts to parish-wide, and only district residents can vote on these issues. Combined special taxing district revenues accounted for about 56 percent of 1998 Jefferson Parish government operating revenue. See table.

Government by special taxing district has some advantages. Residents are able to develop services they might not otherwise receive, and these dedicated funds cannot be diverted for other purposes. But the proliferation of special taxing districts also brings substantial drawbacks that include a lack of flexibility in allocating local resources, fragmentation of services, taxing inequities, and an essentially undemocratic approach to the provision of government services.

The 31 special taxing district funds are among the total of 50 dedicated special revenue funds that provide 78 percent of 1998 operating revenues. Operating income for the remaining special revenue funds is derived from other dedicated sources including sales taxes, user fees, and gaming revenues.

In addition to the special district millages discussed in this report, the Parish administers 11 other property tax-based special taxing districts (only one of which is parish-wide) dedicated to general obligation bonds.

Note that in Jefferson Parish, property taxes are billed at the end of the tax year. Therefore, 1998 taxes are actually collected in 1999. All proposed renewal millages included in this report, though they became effective in 1999, will not be collected until calendar year 2000.

All millage assessments are subject to the homestead exemption. Approximately 69 percent of west bank and 75 percent of east bank residential properties are homestead exempt.