Shreveport’s audited financial report shows the city’s General Fund spent about $20.7 million more than it collected during the first half of 2026. Finance Director Sheila Faour emphasized that the gap is largely a timing issue, not a structural deficit.
Revenue and expense timing
According to the report, General Fund expenditures totaled roughly $122.8 million, while revenue for the same period was $102.1 million. The shortfall translates to about $118 per resident based on the U.S. Census Bureau’s July 2025 estimate of 175,902 residents, though it does not represent a direct charge to taxpayers.
Faour explained that many expenses are encumbered early in the fiscal year and drawn down later, while property‑tax collections typically occur later in the year. “We expect revenues to exceed expenses by 2026 year‑end,” she said.
Projected year‑end balance
The city projects $311.1 million in revenue and $305.4 million in expenses for the full 2026 fiscal year, leaving a surplus of about $5.7 million. The General Fund entered 2026 with a balance of $22.6 million after a $7.1 million decline in 2025.
About $20 million of the year‑end balance is classified as unassigned and available for general purposes, representing 7.7 % of General Fund expenditures.
Reserve requirements
Shreveport’s adopted 2026 budget calls for maintaining a General Fund operating reserve of at least 8 % of expenditures. The city budgeted $23.4 million for the reserve, which equates to roughly 8.28 % of projected spending after excluding the $48.4 million held in other reserve accounts.
Faour noted that the city was below the reserve target at the end of 2025 but is now above the 8 % threshold.
Correcting report errors
The audit also identified several inaccuracies in the management discussion. The report originally stated that General Fund revenues were $10 million below budget and expenditures $22 million above budget. Faour clarified that actual revenues were $18.27 million over budget and expenditures $18.56 million under budget.
Further, the budget‑to‑actual schedule shows General Fund revenue of $272.5 million against a budgeted $257.6 million (about $14.9 million over) and expenditures of $256.6 million versus a budgeted $278.5 million (about $21.9 million under). The $3.36 million difference between the corrected figures and the schedule is attributed to state supplemental pay, which is reconciled separately.
Revenue sources and borrowing capacity
Sales taxes remain the largest source of governmental revenue, contributing roughly $167.9 million of the $343.2 million total governmental activities revenue in 2025 (about 48.9 %).
Faour also corrected the city’s general‑obligation borrowing capacity figure. The management discussion listed $405 million of additional debt available for issuance; the correct amount is approximately $633 million, matching the detailed debt note in the report.
Looking ahead
With the anticipated year‑end surplus and a reserve comfortably above the required threshold, Shreveport officials are confident the city can sustain operations without further strain on operating reserves.
Original reporting: KTBS 3 (Shreveport) — read the source article.
