Holden budget has small increase

• By GREG GARLAND
• Advocate staff writer
• Published: Nov 5, 2009 - Page: 1B

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Mayor-President Kip Holden presented a $701.1 million “stand-still, balanced budget” for 2010 to the Metro Council on Wednesday — one that avoids cutbacks in staff and services.

Holden said Baton Rouge is in far better financial shape than many other cities across the nation, some of which have had to lay off police and other staff, and curtail services for residents.

“We have been fortunate that the economy in the Baton Rouge area has remained strong in spite of a national recession,” the mayor told council members.

He said the city-parish has been “recognized nationally for our strong economy, stable employment and rising home prices.”

Holden added the city-parish has been able to weather a slight dip in sales tax collections this year without cuts in services because of “prudent fiscal management.”

The $701.1 million budget for 2010 represents just under a 1 percent increase compared with this year’s budget of $694.9 million.

Of the total, 40 percent, or $283.1 million, is the general fund budget over which city-parish has discretionary control.

The remainder is dedicated funds to pay for things such as sewer system upgrades, road work and debt service.

Holden said 52 percent of the general fund goes to public safety agencies — primarily police and fire — which he said remain the administration’s top priority.

“We have continued to be fiscally conservative and have been able to provide a stand-still, balanced budget that has a net growth of less than 1 percent for 2010,” Holden said.

In an interview after the budget presentation, Holden’s top aide, Mike Futrell, described the 2010 budget as “extremely conservative.”

He said no new positions have been added to city-parish government, and there are no across the board pay raises or cost of living adjustments for employees.

The budget for 2010 forecasts there will be a 1 percent increase in sales tax collection — the city-parish’s largest source of revenue. The forecast is based on projections by LSU economists Loren Scott and James Richardson.