Parish government to end year with $830,000 deficit

The St. Landry Parish Government budget hit the fan and blew a $830,000 deficit onto the Parish Council on Wednesday.
Parish President Bill Fontenot, in a budget message for the draft 2017 budget, reported the deficit in the 2016 budget.
Fontenot cited a reduction in severance tax revenues, increased mandated expenses, increased employee benefits and capital expenditures for the deficit.
The deficit adds up to a loss of 17 employees through layoffs, retirements or transfers to other agencies to save $670,000 in the 2017 budget, he stated.
Also, in the 2017 budget, Fontenot proposes $555,000 in video poker revenue will stay in the General Fund instead of going to the Road and Bridge Fund.
And, he is proposing that mandated expenses be reduced by 4 percent to save $104,000.
“Of course you know the economics of the region and the state oil and gas is really hitting our budget very hard this year,” Fontenot said.
Last month, Fontenot presented figures showing severances taxes dropped from a high of $1,025,084 in 2012 to $330,000 in 2016.
Fontenot said the 2017 budget proposes “tough business decisions.”
The prospect of an $800,000 deficit in the 2016 budget surfaced in September.
The budget was presented by Charles Going and Matt Ledoux of Going, Sebastien, Fisher & LeBouef, an Opelousas CPA firm.
General Fund revenue is projected at $6.5 million for 2016 and $$6.3 million in 2017.
General Fund expenditures are projected at $7.3 million this year and 6.3 million in 2017.
The 2017 budget is start with a $1.8 million fund balance and end the year with a $955,000 balance.
Fontenot’s budget proposed cutting 11 workers from the Road and Bridge operation.
The Road and Bridge Fund expenditure are to drop from $2,958,754 in 2016 to $2,303,846 in 2017.
Timmy Lejeune, a Lawtell-area councilman, protested the reduced Road and Bridge Fund.
“It looks like we cut most of the revenue shortage out of the Roads and Bridge Fund, he said.
“Already the services in our rural areas are depleted to almost nothing. Without the Smooth Ride Home Program we would have nothing,” he said.
Going said, “Keep in mind a lot of your expenses are not in your control. Mandated expenses are not in your control. They hand you a bill. Basically, as I understand, the law is as long as it is reasonable, you must pay it.”
Lejeune said the council should look a the Racino Fund, which provides $1.5 million to the parish Road and Bridge Fund.
Lejeune said, “It was promised to the people that this racino was going to take us to the next level.”
The council can change the division of the funds from Evangeline Downs Racetrack and Casino, he said.
The current split is:
— Parish government, 55 percent;
— St. Landry Parish Airport, 1.5 percent;
— Coroner, 1.5 percent;
— Economic development, 5 percent;
— District attorney, 3.5 percent;
— Registrar of voters, 1.5 percent;
— Opelousas City Police Department, 6 percent;
— St. Landry Parish Municipal Association, 21 percent;
— St. Landry Parish Judicial System, 2 percent;
— St. Landry Parish Clerk of Court, 1.5 percent; and
— St. Landry Parish Assessor’s Office, 1.5 percent.
The parish receives about $3 million from Evangeline Downs and takes about 4 percent for an administrative fee. The remainder is to be divided as set out by the ordinance. The council receives about $1.6 million of the racino money.
The budget woes reopened conflicts between the parish president and some council members.
Wayne Ardoin, an Opelousas councilman, said, “...I think you knew that we were having some problems fund-wise, but yet you begged some council members here to vote for yourself a raise.”
The parish president’s pay was raised from $65,000 a year to $105,000 in December 2015.
Ardoin questioned whether offices that have mandated expenses are ready to make a 4 percent cut in their budgets.
Those offices include the judiciary, district attorney, coroner, registrar of voters, clerk of court, and assessor.
Councilman Ken Marks, of Port Barre, raised the same questioned.
The parish president said the mandated offices have informally agreed to the 4 percent cuts.
Marks asked what happens if the mandated agencies do not agree to the reductions.
“More cuts,” Fontenot said.
Harold Taylor, council chairman, said, “The reality is we have an $830,000 deficit. We started out in January with a balanced budget ... I’ll take responsibility for not riding herd on it more than I have been, but I don’t know what else I could have done.”
Taylor added, “I was instrumental in forcing you to hire these guys to straighten the books out.”
Taylor has been critical of the Darnall, Sikes, Gardes & Frederick firm, which is parish government’s independent auditor.
But Going pointed out Darnall and Sikes as independent auditors cannot enter into day-to-day management of the parish government’s finances.
Fontenot asked council members to submit questions about the budget to him.
Taylor objected and now the council may direct questions to the parish presidnet and the Goings and Sebastien firm.
The council returns for a special session on the budget at 5 p.m. Wednesday at the Old City Market, 131 W. Bellevue St., Opelousas.