Sid Edwards’ Art of the Deal: EBR Library Pays Up $52.4 Million

   

Sid Edwards just pulled off one of the biggest political budget maneuvers Baton Rouge has seen in years. The East Baton Rouge Parish Library has been sitting on a pile of far more cash than it needs. After weeks of public debate, backroom negotiations, and heated council meetings, the mayor is walking away with a deal that forces the East Baton Rouge Parish Library to cough up $52.4 million.

The debate over the East Baton Rouge Parish Library’s funding has resurfaced as newly elected Mayor Sid Edwards proposes reallocating a portion of the library’s property tax to fund police pay raises. His argument? The library is collecting more money than it needs, and those funds should be redirected to pressing public safety needs. Library officials, however, strongly disagree, insisting that their fund balance is part of a responsible pay-as-you-go model for capital improvements. But does that claim hold up under scrutiny?

A Pattern of Growing Surpluses

It’s taken me a few days to examine the library’s finances closely. As of this writing, the EBR Library has not responded to my records request for the last ten years of their detailed budget. However, the publicly available annual reports and budgets from EBR reveal a clear trend in the broader numbers. Over the last five years, the library’s cash reserves have ballooned by over 60%, reaching an eye-popping $121.4 million in 2023. That’s more than some entire city departments operate on annually. This growth results from consistent annual surpluses, where revenue has exceeded expenditures every year.

The primary source of these surpluses is property tax revenue, which has steadily increased while spending has remained relatively stable. In 2023 alone, the library collected $7.5 million more than it spent, a pattern repeated for at least five years. Meanwhile, millions have been transferred to a separate Library Capital Improvement Fund. In the last ten years (2014-2023), the accumulation of annual report transfers totals $46.4 million.  Despite these transfers, the library’s fund balance continues to swell.

What About Capital Projects?

Library officials insist their massive fund balance isn’t a surplus, just a ‘necessary reserve’ for potential future capital projects. But with tens of millions already funneled into a separate capital fund, it’s fair to ask: How much is enough? To their credit, they do have active projects in the pipeline:

  • South Baton Rouge Branch Library – $11.63 million
  • Delmont Gardens Branch Library Expansion – $9.79 million
  • Scotlandville Branch Library – $10.84 million
  • Zachary Branch Library – $5.66 million
  • Central Branch Library – $6.22 million

These projects total about $44.14 million, with $26.6 million in transfers from 2023 and 2024 already allocated to pay them down. By next year, the remaining cost could be covered entirely by one year’s tax surplus alone, meaning the library wouldn’t even need to dip into its existing fund balance to complete its planned capital improvements.

Future Revenue vs. Spending: An Imbalance?

If historical trends hold, the library is projected to have approximately $64.6 million in total revenue for 2024, $67.1 million in 2025, and $69.6 million in 2026. Meanwhile, capital transfers are decreasing, with only $7.8 million scheduled for 2025 and no planned transfers for 2026.

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This means the library will likely retain significant future surpluses after planned capital spending. Suppose the proposed $17 million transfer holds in 2024 (we’ll find out in April if it does); there would be about a $1.24 million shortfall. However, 2025 would have about $8.66 million after capital transfers. If no significant new spending initiatives emerge, by 2026, the library’s excess revenue could reach over $20 million annually, further expanding its already massive fund balance.

Mayor Sid Edwards Strikes a Deal

After weeks of debate and public pushback, Mayor Sid Edwards announced today a revised plan that scales back his original proposal. The new compromise, “Thrive! East Baton Rouge,” will still redirect some library funding but reduce the cut from 40% to about 25% of the library’s annual budget. Key changes include:

  • Library Millage Reduction: 2.8 mills of the library’s current 11.1 mill property tax will be redirected to the city-parish general fund, reducing the library’s budget from $64 million to $48.14 million annually.
  • One-Time Fund Transfer: Instead of $75 million, the city-parish will now take $52.4 million from the library’s savings (fund balance) to stabilize its finances and help pay down debt.

Mayor Edwards positioned the deal as a major victory for Baton Rouge, stating, “Today is a huge win for Baton Rouge.” Library officials, while initially opposed, ultimately accepted the revised plan. Assistant Library Director Mary Stein stood alongside Edwards at the press conference, stating, “We truly appreciate the many hours spent working on this compromise.”

Library Officials Secure a Key Concession

One major sticking point for library leaders was keeping the library system independent from the general fund, fearing that merging it would make them vulnerable to future cuts. Under the revised deal, the library retains control over its dedicated tax revenue, avoiding a full merger with the city-parish budget. Library Director Katrina Stokes emphasized the importance of this outcome, stating, “The most important thing here is we keep our dedicated millage. That is what we wanted most.”

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What Happens Next?

  • The Metro Council will hold a hearing on the original proposal, but it is expected to be withdrawn or voted down.
  • The new “Thrive!” plan will be introduced on March 26, with a final public hearing and vote scheduled for April 23.
  • If seven Metro Council members approve, the plan will go before voters in October.

Conclusion: A Necessary Reallocation or a Cash Grab?

The facts suggest that the library system is sitting on a growing stockpile of taxpayer dollars, far beyond what is needed for immediate operations and capital projects. While the library has undoubtedly invested in renovations and expansions, its rate of spending has not kept up with its rate of revenue collection. This imbalance has made it a target for reallocation.

Whether voters will approve shifting library funds toward police salaries remains to be seen. What is clear, however, is that the library’s unchecked accumulation of funds has opened the door to a broader discussion on whether taxpayer money is truly being used efficiently.

The library may have kept its dedicated millage, but it cost them a $52.4 million hit. Meanwhile, the city-parish just got a new cash infusion, and everyone from police to infrastructure advocates are eyeing what’s left. This fight may be over, but the war over public funding priorities in Baton Rouge is just beginning.

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