Vermilion Parish School Board only down 1.6 percent in sales tax revenue from last year
Five months into the fiscal year, the Vermilion Parish School District sales tax collection is holding steady, according to school district’s CFO Phil Sellers.
The school district is showing a 1.6 percent decline in sales tax revenue compared to this time last year.
After you do the math, that’s a total of $80,000 less than a year ago
“I will take that,” said Sellers.
The school district normally collects $7.5 to $8 million a year in sales tax. If the trend continues, the school board will be down only $200,000 at the end of the fiscal year.
Oil and gas revenue dropping
While sales collection is holding steady, that can not be said for oil and gas revenue the school board collects from 16 Section Land.
Over the years, when things were going great in the oil and gas economy, the school district was benefiting. Oil and gas companies were drilling on the school district’s 16 Section Land and the school district was collecting nice royalties each year.
In 2013-14, the school district collected $6.5 million from oil and gas revenues. The school district does not budget the money because it fluctuates each year. The school board does use the money to help balance the budget when needed.
Since the 2013-14 year, the school district has watched its oil and gas revenue get smaller because of a decrease in drilling.
Five months into the fiscal year, the school district is on pace to collect its smallest amount of oil and gas revenue in years.
It is on pace to collect $1.7 million for the year, which is $258,000 less than last year and about $1.2 million less than the year before.
The reason for the decrease in oil and gas revenue is because there is no drilling on the school board’s 16 Section Land.