New Orleans' 2025 budget: The winners and losers

The big picture: City Council members said they prioritized funding quality-of-life improvements, affordable housing projects, health-based initiatives and public safety efforts.

• "We have heard time and again that residents do not feel they are receiving the services they pay for, whether that is street improvements or ease of other government services," said council member Joe Giarrusso, who chaired the budget process this year.

By the numbers: The budget adds more than $69 million to Mayor LaToya Cantrell's executive budget proposal, writes Verite's Katie Jane Fernelius.

• The extra money is coming from the city's general fund, capital funds and unspent reserve money, Giarrusso tells Axios.

New projects

Charity Hospital: The project is getting $10 million from the city to add 78 affordable and workforce housing units as part of the hospital building's redevelopment.

• Yes, but: The funds may be delayed as the council fights with Tulane University, the anchor in the $600 million project, writes The Times-Picayune's Ben Myers.

Six Flags: The council is giving $5 million to Bayou Phoenix's plan to redevelop the old amusement park site in New Orleans East. Demolition started last month but was halted due to permitting issues. Go deeper.

New grocery store: The council is investing $2 million to bring a grocery store to New Orleans East.

Former Naval Support Activity Base: $1 million is going to remediate the blighted Bywater facility.

Traffic camera fines: The fines for cameras not in school zones will fund stormwater drainage infrastructure, as part of a new state law. Previously, they went to the city's general fund. Go deeper.

Tire dumping: A new program with the state Department of Environmental Quality is getting $250,000 to incentivize tire recycling.

Winners

"The biggest winners from the 2025 budget are undoubtedly the kids of New Orleans," said council Vice President JP Morrell in a statement.

• He cited the full funding of the New Orleans Recreation Department, along with expanded funding for STEM programming.

Others include:

Orleans Parish schools: The council is providing $20 million to the school board to help fill a budget hole caused by an accounting error. Go deeper.

Homeless initiative: An additional $10 million for the Office of Homeless Services and Strategy.

Workforce development: Various groups are getting $4.7 million for programming for youths and families. The youth summer jobs program will expand next year too.

911 call takers: An additional $1 million to help with staffing the Orleans Parish Communication District, according to Verite.

City employees: 2.5% pay raises are included in next year's budget. It's the final raise in a three-year plan to get to a 10% increase.

Coroner's Office: About $500,000 to hire additional pathologists.

Help for crime victims: About $970,000 is going toward services and resources.

Losers

City departments got about $84 million less than they asked for, representing a 5% to 7% cut in their operations budget, writes Sophie Kasakove with The Times-Picayune.

• Gilbert Montaño, the city's chief administrative officer, said the cuts were necessary as federal pandemic aid ends and other costs increase, Kasakove writes.

Yes, but: Giarrusso tells Axios the cuts were because the city overestimated for merit pay increases last year and they are "right-sizing how it should be done in 2025."

• Most departments spend 80 to 85% of their annual operations budget, so the cuts shouldn't feel "drastic," he said.

Reality check: No one wants to call themselves a loser, but the reality is some funding requests weren't fulfilled.

• See more wish list items from the Big Easy Budget Coalition.

Some of the more notable budget cuts:

Public Works Department and Department of Safety and Permits: Both budgets were cut about 40%.

Algiers Ferry: The city is providing a $3 million subsidy to the RTA, and the agency says it is grateful. However, it asked for about $7 million.

Orleans Public Defenders: The council did not grant an expanded budget request for more staffing or to help with buying an office building, Verite says.

How it works

The City Council is responsible for creating the annual budget.

• Cantrell and other city executives presented their proposals to the council, and the public weighed in at several town halls over the past several weeks.
• The amended budget was passed the week before Thanksgiving.

What's next: The city relies on federal funds as part of its income mix for the budget.

• Giarrusso expects those funds will be cut under President-elect Trump, Verite reports.

Go deeper: Read the executive budget