OPSB Passes Resolution Urging Governor to Reject the Folger Coffee Company’s ITEP Applications

(New Orleans – March 10, 2023) — During a special board meeting, the Orleans Parish School Board (OPSB) voted unanimously to pass a resolution urging Governor John Bel Edwards to reject the Folger Coffee Company's six Industrial Ad Valorem Tax Exemption Program ("ITEP") applications for industrial projects completed in New Orleans between 2018 and 2021.

"If the governor exercises his constitutional authority to formally reject these ITEP applications, our school system will keep intact millions of dollars in funding to continue to serve our students. That's money we can use to pay teachers, provide mental health services, or provide extracurricular activities," said OPSB President Olin Parker. "We believe the governor created this taxing opportunity in good faith and will do what he can to preserve the funds to help our students reach their full potential."

In 2016, by Executive Order, the governor gave local taxing authorities, including the Orleans Parish School Board, the authority to determine whether significant property located within its jurisdiction would be exempt from local taxation. The order further stipulated the relevant governing Parish Council, Police Jury, Municipal Council, School Board, and Sheriff by resolutions could each signify whether they were in favor of a project(s) and the project(s) would be approved.

In accordance with the executive order, amended in 2018, the OPSB adopted Resolution 09-18, outlining its guidelines to govern the approval of ITEP projects under its jurisdiction in July 2018. Two months later, OPSB amended its resolution to include revising its definition of "distressed region" and to correct a statutory reference concerning the criteria for evaluation of ITEP applications.

Shortly after, Folgers submitted a total of six ITEP applications for the Board's consideration for industrial projects it competed in 2018 and 2021. In December 2020, OPSB passed six resolutions rejecting Folger's six ITEP applications based on its guidelines to approve ITEP projects.

On February 21, 2020, the Louisiana Board of Commerce and Industry (BCI) adopted a resolution concerning the ITEP program, in conflict with the ITEP rules set by the local governing authorities. It stated local governing bodies could not contradict or conflict with the BCI rules for an exemption.

As a result, Folger did not list its property as taxable or advise the Orleans Parish Assessor that the ITEP applications were denied. When the Assessor learned that the six ITEP applications were denied, two years later, he acted to add Folger's property to the Orleans Parish tax roll. Folger sued the Assessor and the Louisiana Tax Commission, arguing that the Board's decision was not "final" because it could appeal the decision to the Board of Commerce and Industry under the February 21, 2020 BCI Resolution.

On March 1, 2023, the BCI considered six appeals lodged by Folger concerning its ITEP applications. During that meeting, the BCI decided that all millages flowing to OPSB in all projects would be included in Folger's ITEP contracts because OPSB's rejection of Folger's application was based in part on guidelines that were more stringent than the BCI's. In essence, the BCI overturned OPSB's rejection of Folger's ITEP applications.

"The fiscal impact will cost the District approximately $500,000 per year, in addition to the back taxes owed, negatively impacting the funding we use to provide our students with a high quality education. With his executive order, the governor restored local control over local revenues. What the BCI has done is in direct contradiction with that order. If the governor allows this to stand, it will render his executive order meaningless. We are asking him to do the right thing and reject the BCI's actions. The integrity of the entire ITEP process is on the line," said OPSB Vice President Carlos Luis Zervigón.

The Louisiana Constitution requires the Governor to approve all ITEP contracts.

Based on all these factors mentioned above, OPSB is urging the Governor of Louisiana to exercise his constitutional authority to formally reject all six Folger ITEP applications and disapprove Folger's ITEP contracts. 

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About NOLA Public Schools: NOLA Public Schools (NOLA-PS) is the public school district for Orleans Parish. It includes the district's administration and elected school board, known as the Orleans Parish School Board (OPSB). NOLA-PS currently oversees 72 public schools and is led by Superintendent Dr. Avis Williams, the first woman in the District's 181 years to serve as its permanent superintendent.

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