Sales tax revenue in Ascension Parish took a sharp dip for the month of May.
While year-to-date numbers are still up slightly despite the May drop, all three of the parish sales taxes saw collections drop by double digits.
The one-cent sales and use tax dipped 14 percent, the 1/2-cent sales and use tax fell by 14.79 percent and take from the East Ascension Drainage tax went down 12.27 percent.
It would appear that Ascension Parish, one of the fastest growing areas in the state and nation, is no longer immune to the economic problems that have hit other areas of the country and parts of Louisiana.
The first sign that Ascension might be facing a drop in revenue collections came last month when Parish Chief Financial Officer Gwen LeBlanc reported a slight monthly dip in collections for the month of April. That was the first drop recorded in the Ascension since 2006.
The biggest drop in April was 3.92 percent for the East Ascension drainage tax. The other two sales tax collections each fell by just over 1-percent.
Clearly the double digit drop for this May is cause for concern, and government expenditures will need to be monitored and adjusted accordingly.
Since Hurricane Katrina, the parish has been on a strong upward pattern, thanks to the influx of new residents who moved to Ascension when their homes were destroyed by the hurricane.
If the upward ride in sales tax collections that has benefited parish government since the storm has not been derailed by the so-called Great Recession, it appears to be sidetracked.
Everyone is looking anxiously into the future for next month’s report. If double digit collection drops repeat themselves in June, parish government will begin to sweat, as will the public that benefits from government services that are paid for by the collections.
Like parish officials at last week’s Parish Council Finance Committee meeting when the new figures were released, we are concerned, but not fearful.
When downturns hit, belts must be tightened and frills put to the side. This is hard in a household when everyone can sit around the table and make their choices, and especially hard in government when many more voices must be heard and priorities considered.
The causes for a drop in sales tax revenue in Ascension seem clear. Consumers have cut back on their spending, and the chemical manufacturing sector along the Mississippi River has done likewise.
We believe this economic downturn will pass and Ascension will continue its role as a leading parish in the state.
