EBR outpaces U.S. average for dedicated tax dollars

Of every tax dollar collected in East Baton Rouge Parish, 63 cents is dedicated to specific agencies, funds or projects. In the rest of the country, just 45 cents of every tax dollar has the same fate, on average. In the city-parish’s 2012 budget of nearly $750 million—three-quarters of a billion dollars—more than two-thirds is dedicated. The mayor and Metro Council have little, if any, control over how those dollars are spent. The other one-third goes to the general fund, the pool of mostly discretionary dollars that the mayor and Metro Council can prioritize and spend as needs arise. The high proportion of dedicated tax dollars can provide comfort in times of predictable revenue streams and keep long-planned projects from dying on the vine. But it also “presents a real dilemma for people who are trying to balance a budget,” says Jim Brandt, retired director of the Public Affairs Research Council, “because it really hampers your ability to adapt to changing priorities and conditions.” On April 21, some voters in East Baton Rouge Parish—specifically, those in incorporated Baton Rouge, Baker and Zachary—will get the chance to vote on another dedicated tax. This time, it’s a 10.6 mill property tax that would act as a dedicated funding source for the cash-strapped Capital Area Transit System. Read all about it in the complete cover story by Senior Editor Stephanie Riegel in the new issue of Business Report here.