CADDO PARISH, La. — Data-center development is expected to generate about $14 million in property taxes while also contributing to higher sales-tax collections and increased road-permitting activity in Caddo Parish, according to details presented Thursday as parish officials unveiled a proposed $149 million spending plan for 2027.
Caddo Parish Administrator Erica Bryant told commissioners that data centers are expected to bring about $14 million in property taxes as she outlined the parish’s financial position and economic-development outlook.
Bryant did not specify during the presentation whether the $14 million represents annual revenue to Caddo Parish government, total property taxes generated across local taxing bodies or a figure associated with a particular stage of data-center development.
The figure nevertheless provides one of the clearest public indications yet of the potential local tax impact from the billions of dollars in data-center investment underway in Northwest Louisiana.
The proposed 2027 budget projects $119 million in total parish revenue, an increase of 3%. Property-tax collections are expected to increase 5.2%, while sales-tax revenue is projected to rise 9%.
Bryant attributed the sales-tax increase to inflation, increased construction costs and costs associated with data-center development. Property-tax growth is being driven by increased assessments and higher property values.
The data-center construction boom is also beginning to affect parish operations.
Caddo is proposing an additional Commercial Vehicle Enforcement Unit position because of increasing road-permitting demands associated with data centers and related activity.
“We’re seeing more and more needs on our roads for permits with the data centers and the activity there,” Bryant told commissioners.
Revenue generated by the Commercial Vehicle Enforcement Unit is expected to cover the cost of the additional position.
The developments provide additional evidence that large-scale data-center construction is beginning to show up in Northwest Louisiana government finances and operations.
Amazon announced plans in January to invest at least $12 billion to build data-center infrastructure in Caddo and Bossier parishes, one of the largest economic-development investments in Louisiana history. Additional data-center development has also been proposed in the region.
Caddo proposes $149 million in spending
Overall, Caddo’s proposed 2027 budget calls for approximately $149 million in expenditures, a 2% increase that Bryant said is primarily related to salaries and benefits.
The budget includes a proposed 2% cost-of-living adjustment for employees and merit increases of up to 3%.
Caddo has 446 budgeted positions and is proposing seven additional positions. Several would be funded through grants, including positions associated with Head Start and adult drug court.
The parish is projecting a fund balance of approximately $215 million. Its reserve trust fund is expected to approach $48 million by the end of 2027.
Bryant said the parish’s reserves provide financial stability but cautioned that a large fund balance should not be viewed as an invitation for unrestricted spending.
The proposed budget also includes approximately $34 million in capital projects, with much of the investment directed toward roads.
Other planned capital expenditures include approximately $5.2 million for park improvements, $3.4 million for drainage improvements, $1.5 million for improvements at Caddo Correctional Center, $2.5 million for other parish buildings and $3.6 million for solid-waste compactor system upgrades.
Criminal justice costs remain challenge
Despite Caddo’s strong financial position, criminal justice continues to place significant pressure on parish finances.
Bryant said criminal justice represents approximately 25% of the parish’s total budget, much of it driven by costs Caddo is required by law to pay.
The proposed budget projects a $4.5 million operating deficit in juvenile justice, a $5.5 million deficit in the general fund and a $2.9 million deficit in the detention facilities fund.
Caddo Correctional Center’s population has climbed to nearly 1,700 inmates.
“We used to say that 1,400 was too many, 1,500 was too many, 1,600 was too many, and now we’re at 1,700,” Bryant said. “It’s not sustainable.”
She warned that continued operating deficits in criminal justice could eventually require additional revenue.
At the same time, Bryant pointed to private-sector investment as an opportunity to expand Caddo’s tax base as the parish confronts longer-term demographic challenges. She said Caddo Parish’s population has declined approximately 7% since 2020.
“We must continue looking for opportunities to attract investment, create jobs, expand our tax base and make Caddo Parish a place where people want to live, work and raise their families,” Bryant said.
Commissioners formally received the proposed budget Thursday.
A budget retreat is scheduled for Nov. 10, followed by a public hearing Nov. 19 at 3:30 p.m. Final adoption is scheduled for Dec. 1 at 3:30 p.m.