Orleans Parish Property Taxes and Local School Funding

In looking at the tax bill of a residential property in New Orleans, it appears that a relatively small percentage of the total collected taxes are being used to support public schools.  However, looking at school taxes as a proportion of total taxes does not take into account the way in which these taxes are collected and distributed.  There are a number of taxing bodies and special taxing districts in Orleans Parish.  Taxing bodies include the City of New Orleans, the Sewerage and Water Board, the Board of Liquidation, and the Orleans Parish School Board.  Special districts include those neighborhoods that elect to tax residents for special services such as security details.

The Orleans Parish School Board is given its taxing authority via the Louisiana Constitution.  It collects local taxes for all public schools run or chartered by the OPSB and RSD.  This authority is separate from that of the City and the OPSB is allowed to set its millage rate (the number of mills per dollar of property assessment) within certain boundaries.  According to the Bureau of Governmental Research, the OPSB is authorized to tax property at a maximum of 40.34 general obligation mills.  In July 2010, the OPSB rolled forward its general obligation millage to the maximum of 40.34, while reducing another millage dedicated to drop-out prevention.  The total 2011 millage for the OPSB will remain at 44.12 mills, the same as 2010, generating an estimated $102,293,541.[i] (It should be noted that an additional $82,747,058 in locally-generated revenue will come from sales tax.[ii])

Therefore, the property taxes dedicated to the OPSB are not determined as a percentage of total property taxes paid.  It is based on both the maximum millage rate allowed by the Constitution as well as the rate the OPSB chooses in a given year.  The question then remains, is the OPSB’s general obligation millage higher or lower than other parishes in Louisiana?  The Jefferson Report did a brief study and found that the OPSB was squarely in the middle.[iii]

While the number of mills that a city taxes itself for public schools tells only part of the picture, it is an important indicator of the financial health and sustainability of public schools.

The content of this blog post was edited on 3/1/2011.

[i] Rolling Forward: The Complete Picture, The Bureau of Governmental Research, November 2010

[ii] Orleans Parish School Board, Revenues and Expenditures, Budget All Funds, 2011

[iii] How Kenner Stacks Up, The Jefferson Report, December 17, 2010, http://thejeffersonreport.com/?cat=179.

[iv] The State of Public Education in Louisiana, The Scott S. Cowen Institute for Public Education Initiatives, March 2010.

[v] Taxation in New Orleans: BGR Presentation to the Tax Fairness Commission, The Bureau of Governmental Research, February 3, 2011.

[vi] Ibid.