New Orleans budget proposal cuts 152 positions
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Mayor Helena Moreno (second from left) and chief administrative officer Joe Giarrusso present the 2027 budget proposal Tuesday. Photo: Samuel Myers/New Orleans City Council
Mayor Helena Moreno on Tuesday proposed cutting 152 positions and shrinking city government in 2027.
Why it matters: Some of the cuts could be offset by new fees and increased property taxes if there's public support.
The big picture: The city's expenses are about $100 million more than the forecast revenue for next year, Moreno told the City Council on Tuesday during her executive budget proposal.
- After searching the proverbial couch cushions, she said, she had about $77 million left in cuts to make.
- NOFD is facing a 10% cut, while millions more would be trimmed from the low-barrier homeless shelter, Mardi Gras cleanup, grass cutting, public defenders, mobile crisis intervention and other city-funded services.
- The administration said the budget is a "menu of options." The council can alter it until it adopts a finalized budget by Dec. 1.
Yes, but: The proposal could change dramatically should the city roll forward property tax millages, which would bring in $20 million to $42 million.
- These are the property tax rates that voters previously approved to fund public services.
- Under the proposal, the owner of a $100,000 house on the East Bank with a homestead exemption would pay $29.55 more annually, chief administrative officer Joe Giarrusso said.
- The council will vote on the issue Nov. 5.
What's she saying: "What is the right balance for the people of New Orleans?" Moreno said. "Every dollar matters to the city services, but also every dollar matters to the people who pay for them."
Zoom in: City employees are still furloughed one day every pay period.
- The furloughs won't carry over into 2027, but Giarrusso said the city is trying to end them earlier.
Behind the scenes: Giarrusso and Moreno have committed to a 10% cut to their own salaries, no matter what else happens with the budget.
- Giarrusso makes $325,000 annually and said Moreno makes about $180,000 to $200,000.
Zoom out: The proposed budget would get the city's staffing and operations closer to where they were at the end of Mitch Landrieu's administration, Giarrusso and City Council President JP Morrell said.
- The city added about 400 employees during LaToya Cantrell's administration, when the coffers were flush with federal money.
- Between cuts this year and the proposed ones for next year, the Moreno administration would have eliminated about 350 positions.
- The city currently has about 4,700 employees, the administration said.
Zoom in: Department heads will present their annual recaps and budgets to the City Council over the next month.
- This is also when residents should let officials know what they want to keep, said Councilmember Lesli Harris, who is the budget chair and will lead the meetings.
- Council members also plan to have town halls in their districts.
What's next: The budget meetings start next week.
- See the schedule.
- See the proposed budget.