KEN KREFFT
Contributing Columnist
The Shreveport City Council approved a 13% salary increase at its Jan. 11 regular meeting. The vote was five in favor with two opposed, members Grayson Boucher and John Nickelson.
The 2022 city sales tax appropriation is $126,000,000. Monthly, this is $10.5 million. City sales tax receipts averaged $12,777,967.44 during the last nine months.
If a department head has a 10% vacancy rate in budgeted positions, a 13% pay hike will cost that department 1.7% more, a 5% vacancy rate 7.35% more. It only costs 13% more if no vacancies exist the entire year in such a department.
The CAO, with the departmental leaders, should be able to manage their vacancies with the understanding that their budgets are going to run at this 13% upward salary bump.
The current inflation rate has much to do with sales tax collections. Our 2.75% sales tax assessment brings in another 11 cents to the city's coffers for every four dollars shoppers spend.
Shreveport should be able to manage vacancies on the debit side of its ledger to keep pace with our sales tax revenue to sustain the well-deserved salary increases for all its employees.