The Lafayette Parish general fund “is going bankrupt,” a certified accountant told the parish’s elected officials during a presentation of the government’s annual audit on Tuesday.
As The Advertiser reports, Burton Kolder, a managing partner at Kolder, Champagne, Slaven & Company CPAs, said sales tax collections in the parish fell more than $1 million between the fiscal years 2014-15 and 2015-16.
As of Oct. 31, the end of fiscal year 2015-16, the parish fund balance was $1.7 million, down $2.1 million from the previous fiscal year. The situation, Kolder said, is “pretty much a critical stage.”
He added that the parish general fund had enough money in reserve to operate 80 days at the end of fiscal year 2014-15 and only 22 days worth of funds left by the Oct. 31.
Lafayette Parish’s Chief Financial Officer Lorrie Toups adds says it has even less today. Governments are required to have 60 days worth of reserves.
Kolder says much of the parish’s budget revenue was dedicated by voters for a specific use and fund. If one fund has a substantial nest egg, that money cannot be used for another purpose.
“You can’t do that. It’s illegal,” Kolder said.
Officials could use parish general fund money to cover a fund lacking adequate financial resources, but the general fund itself is quickly being depleted. The CPA told the Lafayette Parish Council its only option may be to reduce services.
