Despite the recent annexations into the city of Baton Rouge of properties such as L’Auberge Casino & Hotel, Mall of Louisiana, Celtic Studios and Costco, supporters of an effort to incorporate a new city of St. George say the proposed city’s draft budget still shows an annual surplus of $10 million to $15 million—meaning increased taxes for those inside the new city would not be necessary.
The figures released today come in response to a report released last month by the Baton Rouge Area Chamber and Baton Rouge Area Foundation, which said the new city could face a budget deficit as large as $9 million at its outset. Such a deficit likely would lead to a tax hike.
“Our synopsis may have not been done by a high priced firm, but we challenge anyone to dispute the truth and logic of the data,” reads the report issued today. “It must also be noted that polls were conducted prior to the (BRAC/BRAF) report being published that said if taxes went up, people will not be favorable towards St. George. It is no surprise that their report indicated an increase in taxes.“
BRAC and BRAF commissioned accounting firm Faulk and Winkler to conduct its analysis, which stated that not only would the new city face financial problems, it also would put in peril the finances of the rest of East Baton Rouge Parish and its school district. The incorporation would cost the general fund of the city of Baton Rouge as much as $53 million and could lead to police and fire service cuts in Baton Rouge, the Faulk and Winkler analysis said.
The St. George supporters take issue with that analysis, as well as another conducted in December 2013 by economist Jim Richardson. The latter analysis also was critical of the proposed city’s projected finances and was commissioned by BRAC and BRAF.
See the complete report issued today by the St. George supporters, as well as the report released by BRAC and BRAF last month. —Steve Sanoski
