Terrebonne slashes 2011 budget by 16 percent

With a financial budget totaling $194.5 million for 2011, significantly lower than the 2010 adopted budget of $231.1 million, Terrebonne Parish is faced with a 16 percent cut.

“In an effort to provide a balanced budget as required by law, Administration has been placed in a position of making difficult decisions as it relates to the delivery of services and the retention of Terrebonne Parish Government employees,” Terrebonne Parish President Michel Claudet wrote in his budget message that he read to the council last Wednesday.

“The uncertainties of the economy, the impact of the Gulf oil spill and the result of the drilling moratorium have had a chilling effect on our revenue forecast for 2011,” he said.

The budget projects the parish will see a drop in revenue from approximately $383.5 million to $189 million, with intergovernmental revenues taking the largest cut – dropping from $216.7 million to $20.6 million.

“Department heads propose to eliminate jobs through attrition, and/or eliminating unfilled positions to meet budgetary constraints,” Claudet wrote.

Some sectors of government will face workforce reduction, according to Claudet. Twenty-three internal full-time positions are being eliminated, but 19 of those are said to be vacant.

“We have also substantially reduced or eliminated operating capital requests, with hopes of mid-year financial changes,” he said.

Claudet noted the proposed $194.5 million for 2011 contains $11.3 million in operating capital and five-year capital outlay, in comparison with the $21.3 million in the 2010 adopted budget.

Based on available funds, projects proposed in the 2011 five-year capital outlay budget include: the Eastside police substation, East Houma walking trails, Valhi/Hollywood extension to Savanne Road and Phase II of extending Westside Boulevard to Martin Luther King Boulevard.

Sale tax revenues are anticipated to drop from $34.5 million to $31.7 million in 2011.

Public Safety will use $2.4 million of its total $3.9 million in surplus dollars, and administration foresees having to redistribute revenues over the next few years to make up for steadily increasing retirement rates for the police and fire department.

The parish sold $17 million of Sewer Revenue Bonds on Sept. 23 to improve the existing sewage system. $2 million is slated to go to infiltration/inflow elimination, and $15 million to the lift station and plant improvements, according to the budget message.

In addition, the parish received $132 million in CDBG funds for hurricane recovery, which will assist in building parish levees and improving drainage.

“As we look forward to the New Year and beyond we must recognize the reality of our current situation. Terrebonne has been in the fortuitist position of resisting national economic trends over the last several years … we must continue to budget accordingly and be thoughtful and prudent managers of taxpayer funds,” Claudet said.

Council accepted the proposed budget unanimously last week, and hearings will begin in early October during Budget and Finance committee meetings. The council is set to approve the budget on Dec. 1, and it will go into effect Jan. 1, 2011.