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Finance

Baton Rouge Mayor Proposes Tax Cuts and Police Raises by Redirecting Library Funds

2025-02-06

In a surprising move, Baton Rouge Mayor-President Sid Edwards has proposed reallocating funds from the city's public library system to cut taxes and increase police salaries. The mayor justifies this decision by citing a budget surplus within the library system, accumulated over years of what he describes as "overtaxation" of citizens. According to the 2025 city-parish budget, the library ended 2023 with a fund balance exceeding $116 million. This plan would require public approval through a vote. Edwards also emphasized his commitment to maintaining well-funded libraries in Louisiana while highlighting the need for fiscal responsibility.

Mayor-President Edwards has outlined a proposal that aims to reduce the city-parish millage rate from 11.1 mills to 9.8 mills, marking what he claims is the most significant tax reduction in two decades. Concurrently, the average salary for Baton Rouge police officers would see an increase from approximately $40,900 to $58,000. Additional funding would be allocated towards economic development and critical infrastructure improvements. Each councilmember would also receive resources for special projects within their districts. Edwards expressed his intention to work closely with the EBR Metro Council to optimize spending priorities.

Mary Stein, the assistant director at the East Baton Rouge Parish Library, strongly disagrees with the mayor's plan. She clarifies that the accumulated funds are not merely a surplus but are intended to cover future expenses, including renovations in Baker and Zachary. Stein warns that reducing these funds could jeopardize essential services and maintenance projects. The library system plans to present its own proposal at the upcoming Metro Council meeting, which includes a more modest reduction in property tax from 11.1 to 10.5 mills. Stein highlighted potential consequences such as delayed renovations and reduced services if the mayor's proposal goes through.

The mayor's office anticipates the Metro Council will consider the proposal in March, with hopes for a public vote in October. This initiative reflects a broader debate about balancing tax relief, public safety, and the sustainability of essential community services. As discussions continue, both sides aim to find a solution that best serves the residents of Baton Rouge.

In a significant development in the financial technology sector, two innovative companies are joining forces to enhance small business financial management. Moneyhub, a leader in open banking technology, has partnered with Money Squirrel, a startup focused on automating VAT savings and optimizing cash flow for small businesses. This collaboration aims to leverage open banking capabilities to provide more efficient and accessible financial tools for entrepreneurs. As regulatory frameworks like PSD2 continue to influence the European market, this partnership represents a pivotal moment in the evolution of open finance solutions.

Empowering Small Businesses with Cutting-Edge Financial Tools

Based in the UK, Money Squirrel recently launched its new app designed to streamline financial management for small businesses. The platform utilizes Moneyhub's advanced API technology to automate VAT savings and optimize cash flow, addressing common challenges faced by entrepreneurs. By connecting their savings accounts, users can allocate incoming funds into high-interest accounts, maximizing returns on idle cash. Founder and CEO Andreea Daly shared her vision, emphasizing the importance of reducing administrative burdens that often hinder business growth. Having experienced these frustrations firsthand, Daly is committed to creating a solution that unlocks potential for small businesses.

Money Squirrel's participation in the SHIFT open finance community's Ignite incubator program further underscores its commitment to innovation. This initiative provides valuable resources such as financial support, expert guidance, and networking opportunities. Meanwhile, Moneyhub, founded in 2014, has been at the forefront of personal finance technology, offering a range of tools including open data APIs, decision-making solutions, and payment capabilities. The company's Managing Director of API, Kim Jenkins, highlighted the significance of this partnership in making open banking technology accessible to both SMEs and larger institutions. By simplifying financial management, Moneyhub and Money Squirrel aim to drive financial inclusivity and innovation across various sectors.

As regulations evolve, businesses are increasingly adopting open finance solutions to gain better control over their operations. Fintechs like Money Squirrel play a crucial role in reducing administrative tasks, improving liquidity management, and enabling more data-driven financial decisions. This partnership exemplifies the growing trend of leveraging technology to empower small businesses and promote sustainable growth.

From a journalist's perspective, this collaboration between Moneyhub and Money Squirrel marks a significant milestone in the open banking landscape. It demonstrates how innovative partnerships can address real-world challenges faced by small businesses, ultimately fostering a more inclusive and dynamic financial ecosystem. The success of such initiatives will likely inspire further advancements in fintech, benefiting entrepreneurs and the broader economy alike.

Every year, I engage with college students to demystify personal finance and highlight the transformative impact of smart financial habits. Through interactive sessions, we explore how young adults can harness the power of time and compound interest to build a robust financial future.

Unlock Your Financial Potential: Start Now, Reap Rewards Later

Navigating Financial Mindset

The foundation of any successful financial journey begins with understanding one's relationship with money. Students are often surprised by how deeply their feelings about finances influence their decisions. During my lectures, I encourage them to reflect on their current mindset and envision how they want to feel about money in the future. This introspection sets the stage for practical steps toward financial empowerment.In a world where financial literacy is increasingly emphasized, it's crucial to recognize that everyone starts from a different point. Whether you come from a family that prioritized savings or one that struggled with debt, your background doesn't define your future. What matters is taking control of your financial trajectory. By shifting from a reactive to a proactive approach, students can begin to craft a financial life that aligns with their aspirations.

Mastering Savings and Budgeting

One of the most impactful lessons I share is the importance of paying yourself first. This simple yet powerful concept involves setting aside a portion of your income before addressing other expenses. The 50/30/20 rule serves as an excellent guideline: allocate 50% to needs, 30% to wants, and 20% to savings. Even starting with a modest 1% can make a difference over time.Budgeting is often perceived as restrictive, but it can be liberating. When students see budgeting as a tool for achieving financial freedom rather than a constraint, they gain a new perspective. Dividing their income according to the 50/30/20 rule allows them to enjoy their hard-earned money while building a solid financial cushion. This balance between spending and saving fosters long-term financial stability and peace of mind.

Leveraging Compound Interest for Wealth Growth

The moment students grasp the concept of compound interest, the room buzzes with excitement. Compound interest is a game-changer because it allows your money to grow exponentially over time. Starting early provides a significant advantage, as even small contributions can accumulate into substantial wealth.Data shows that Gen Z is more inclined to invest at a younger age compared to previous generations. According to the 2024 Schwab Modern Wealth survey, Gen Z began investing at an average age of 19, much earlier than baby boomers (35) and millennials (25). This eagerness to engage with financial markets highlights the growing awareness of the benefits of early investment.Analyzing compound interest charts reveals the stark contrast between those who start investing at 25 versus 35. Despite investing for fewer years, the early starter ends up with a significantly larger portfolio. Using tools like the St. Louis Fed's compound interest calculator, we demonstrate how much less they need to save monthly to reach millionaire status by 50. These insights inspire students to take action and embrace the power of compounding.

Demystifying Investment Myths

Many students harbor misconceptions about investing, believing it's reserved for wealthy individuals or those with extensive financial knowledge. They often think investing means buying individual stocks or that it's inherently risky. These myths can be discouraging, preventing young people from participating in the market.During our discussions, I emphasize that investing is accessible to everyone. Passive investing strategies, such as index funds that track the S&P 500, offer a low-cost entry point for beginners. With minimal financial expertise, anyone can start contributing to their financial future. As students realize that investing isn't just for the elite, their enthusiasm grows. They understand that they have the power to participate and benefit from the market's potential.

Fueling the Appetite for Financial Literacy

Each year, I'm reminded of the strong desire for financial education among young adults. While progress has been made—more states now require personal finance classes for high school graduation—there's still work to be done. Continued conversations and educational initiatives are essential to fostering financial literacy and empowering the next generation.By equipping students with the knowledge and confidence to manage their finances, we set them on a path to long-term success. Time is their greatest ally, and starting early can lead to remarkable outcomes. The key message remains clear: don't wait; start now!