Jefferson Parish has implemented a hiring freeze as sales tax collections for the first two months of the year were down 11 percent or $2.3 million from the same months in 2009, interim Parish President Steve Theriot said. Sales tax revenue for February was 3 percent lower than a year earlier. That's an improvement from an 18 percent year-over-year...
Jefferson Parish has implemented a hiring freeze as sales tax collections for the first two months of the year were down 11 percent or $2.3 million from the same months in 2009, interim Parish President Steve Theriot said.
Steve Theriot Sales tax revenue for February was 3 percent lower than a year earlier. That's an improvement from an 18 percent year-over-year drop in January, but Theriot said any decline is cause for concern.
"The hiring freeze is a precautionary measure," he said. "I don't want to have to start laying people off if this trend continues."
He said exceptions to the hiring ban could be made on a case-by-case basis for positions deemed critical to parish operations.
Theriot said he has directed the Finance Department to review several other potential cost-saving measures, including switching to a four-day work week and across-the-board budget cuts.
Jefferson's sales tax revenue has fallen steadily since 2006, when it ballooned as residents throughout the New Orleans area went on spending sprees to replace items destroyed by Hurricane Katrina.
The parish's 2010 budget is based on projections that the downward trend would end and sales tax revenue would remain the same as in 2009.
That hasn't been the case so far as the parish received $9.3 million in sales taxes in January, or $2 million less than in January 2009.
Parish officials had hoped sales of New Orleans Saints memorabilia following the team's Feb. 7 Super Bowl win would bolster February's tax receipts.
"The Saints may have helped, because February was better than January, but there's no way to know for sure," Finance Director Gwen Bolotte said.
The parish took in $9.7 million in sales taxes in February, which is $275,000 less than in February 2009. Sales taxes account for about a quarter of the parish's $540 million in revenue.
Other public entities in Jefferson Parish are also dealing with the sales tax crunch, according to Sheriff's Office figures.
The School Board's receipts for the first two months of the year dropped $2.5 million to $22.2 million. Kenner's went down $562,000 to $4.4 million. Gretna's declined $114,000 to $987,000. Westwego's dropped $40,000 to $294,000, and Harahan's decreased $44,000 to $194,000.
Theriot said officials in East Baton Rouge Parish, which began the year with a similar sales tax slump, told him they are seeing signs that March will be better.
Theriot said his staff is seeking more detailed information from the Sheriff's Office to conduct a similar analysis for Jefferson Parish.
"We want to stay on top of this," he said.
Sales tax figures for March are expected to be available May 10.
Paul Rioux can be reached at prioux@timespicayune.com or 504.826.3785.