Thrive! baton rouge

Bankruptcy on the table: Voters to choose path forward as Baton Rouge faces $50M debt — Here’s what that could look like

BATON ROUGE — Facing a looming budget crisis and more than $50 million in debt, Baton Rouge is at a financial crossroads. Mayor-President Sid Edwards has warned that without urgent changes or the passing of the proposed Thrive! budget plan, the city-parish could face bankruptcy, widespread layoffs, and cuts to essential services.

On May 14, the Metro Council unanimously approved three tax renewal proposals for the November 15, 2025 ballot. The measures would continue funding for public libraries, the Council on Aging, and Mosquito Abatement and Rodent Control, while redirecting a portion of that funding to help stabilize the city’s general fund.

Now, it will be up to voters to decide how the city moves forward: approve the proposals to avoid deep cuts and restore financial stability, or reject them and risk severe consequences for city operations and staff.

Thrive! Baton Rouge Aims to ‘cut the fat’

“It is absolutely not out the question that bankruptcy of the City of Baton Rouge would be an option,” Edwards told UWK. “You might could hold the fort and plug the holes, but I have nowhere else to go.”

The goal of Thrive! is to pay off all of Baton Rouge’s current debt and stabilize the budget so that eventually there will be more room for improvements. 

“We’re going to scrub it. We’re going to cut fat. We’re going to be efficient,” Edwards said.

Edwards acknowledged that many residents do not trust politicians, especially right now, and that he must earn their trust. He added that he, too, has often been skeptical of politicians.

“Take a chance and trust me, because we’re gonna do it right, and it’s gonna be transparent and above board. This is different. I am not the politician next door,” he emphasized.

What Voters Need to Know Before the November 15 Millage Vote

In March, Edwards introduced Thrive! Baton Rouge, a compromise plan designed to provide long-term, dedicated funding for essential services while continuing to support the parish library system.

The original proposal called for library system millages, with 2.8 mills redirected to parish-wide general purposes, Mosquito Abatement and Rodent Control, the Council on Aging, and the Parish General Alimony Millage. However, the Parish General Alimony Millage was later removed to help ensure voter support.

Edwards said public opposition to new taxes played a role in that decision.

The proposed library millage would remain at 11.1 mills, with 2.8 mills redirected to the general fund. This would generate approximately $16.24 million annually for the city-parish. Additionally, the city-parish plans to rededicate $52.4 million from the library system’s fund balance to the general fund.

These redirected funds would be used immediately to pay down about $50 million in outstanding city debt. As of the end of last year, the city-parish’s debt totaled $52,461,612, largely from past infrastructure investments such as the Public Safety Complex, drainage improvements, the Raising Cane’s River Center, and police pension obligations.

“So that is going to be used to plug the hole in the budget and stabilize the government,” said Mayor Edwards. “

Paying off that debt, Edwards says, could free up around $9.4 million each year in interest payments, money the city would no longer owe.

Millage rates for the Council on Aging would be 2.25 mills, with 0.25 mills redirected to the general fund. That would bring in an estimated $1.45 million annually.

Millage rates for Mosquito Abatement and Rodent Control would be 2.06 mills, with 0.50 mills redirected to the city-parish, generating approximately $2.9 million per year.

The millages will go before voters on Saturday, November 15, 2025. If approved, they would take effect in early 2026 and remain in place for 10 years.

If the proposals pass this fall, Edwards said he would have the flexibility to review pay studies and consider salary increases for employees.

However, if the proposals fail, serious consequences could follow. Edwards said layoffs are likely, possibly affecting hundreds of employees.

Edwards’ original plan, which would have shifted library system funds to the general fund, was included on the East Baton Rouge City Council’s March 12 agenda but was withdrawn following the Thrive! Baton Rouge announcement the day before.

Edwards: “This is what I walked into”

Edwards stressed that the current financial problems were inherited from previous administrations, which left the city-parish with an unbalanced budget and staff structure.

“I don’t want to throw anyone under the bus, but this is what I walked into,” the mayor said. “Some coffers were indeed emptied out. You have debt, and you go all the way down to lower-level things — whether it be grants or whatever — I think it got fat.

“City-Parish should not be in the employee business. Instead, it should be in the service business. Now, that’s not to startle our employees, because I’ve told you I want to do whatever we can to retain our employees. Now, what I have to do is ask: Is there anywhere that, as we scrub this budget, we’re overstaffed? Is there anywhere we can be more efficient?”

One example Edwards gave was that an oil change through city-parish services can cost about $150. He suggested outsourcing such services to private companies as a way to reduce costs.

How the St. George Separation Is Impacting Baton Rouge Finances

While some blame the debt on the creation of the City of St. George, Edwards said it’s unfair to place all responsibility for the city-parish’s financial state on annexation.

“We should have known that that was coming for almost a decade,” he said.

Drawing from his experience as a former sports coach, Edwards said that when you take over a team, you inherit what the previous coach left behind. Then, you take ownership and work toward building something better—just as he is trying to do with Thrive! Baton Rouge.

Zero-Based Budgeting and the Push for Long-Term Stability

If the millage renewals do not pass in November, Edwards said he will have no more options to balance the budget. Layoffs and service cuts would be unavoidable.

He compared the situation to a time in his personal life when he accepted a lower-paying job and had to make difficult financial choices that affected not only himself and his wife but also their two autistic sons.

“A lot of our TV got cut, and what we bought, where we shopped, what we did — all changed. We couldn’t eat out. So on a bigger scale, this is just what it is,” he explained.

Still, Edwards said the budget has no more excess to cut unless it comes from people or services. While it is too soon to say exactly which services would be affected, he offered some possibilities, including mowing, garbage pickup, and fleet services for city-parish vehicles. Any service could be impacted, he clarified.

Departments Ordered to Slash Budgets as City Faces Massive Shortfall

The city-parish’s current form of government requires the mayor-president to submit the proposed budget for the upcoming year by November 5. However, that deadline comes before the Thrive! Baton Rouge vote on November 15, 2025.

For now, the East Baton Rouge Finance Department projects a shortfall of between $18 million and $21 million for the 2026 General Fund budget. A major factor is the estimated $21 million in lost revenue due to the separation of St. George, according to the city-parish.

“This means that all departments must build their budgets from the ground up, justifying each expense as essential to operations, rather than relying on prior-year baselines. Therefore, the Administration is taking a multi-prong approach to solve the shortfall by evaluating operations, instituting efficiencies, and potentially utilizing some reserves to balance the budget,” a city-parish spokesperson told UWK.

What Happens If Thrive! Baton Rouge Fails at the Polls?

Whether or not Thrive! Baton Rouge passes, budget cuts appear inevitable. The difference is that, if voters approve the plan, departments may not need to trim as deeply. The city-parish would gain approximately $29 million in funding for the general fund to help operate the city and parish.

If Thrive! fails, not only will that $29 million be lost to the general fund, but several departments, some already strained, like the East Baton Rouge District Attorney’s Office, could face even deeper cuts.

“After a successful election on November 15th for the Thrive! Baton Rouge plan, the 2026 budget will be amended, most likely through the budget supplement process,” added a city-parish spokesperson.

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