Parish President Kevin Davis Comments:
Parish Budget Cuts
The effects of the poor national economy are now being felt in St. Tammany Parish. Across the board, from sales taxes to earned income, parish government revenues are down. The ‘rainy day fund’ was reduced by 75% over the past three years as we went through the Katrina recovery process.
Sales tax revenue was down by 14% in January. Residential construction permits are at a twelve year low and construction permits are softening. Other fees, such as franchise fees, are also declining.
In anticipation of declining revenues, we adopted a budget for 2009 that was a 6.5% decrease from 2008. As the early 2009 numbers become available, we realize that we must tighten our belts even more.
Last night, I asked the Parish Council to introduce an ordinance reducing the parish’s operating budget by 3%, across the board.
I have asked all parish agencies and departments to prepare a budget reduction plan before the end of April. I have instructed the departments to maintain employees if at all possible. If layoffs must occur within a department, we will look to other agencies for transfers into funded positions if possible.
Until we finalize exactly which line items within the departments and agencies will be directly affected by the cuts, I cannot predict the full impact these cuts may have on services. I assure you that we will do everything within our power to maintain essential services.
We will continue to be fiscally prudent. We will continue to monitor all parish revenues and expenditures closely and keep you apprised of our situation.
Kevin
Use this link to view the St. Tammany Parish Annual Report: 