New Orleans weighs property tax hike to save city services
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The City Council will vote next week on whether to raise property taxes to help save services threatened by the city's budget crisis.
Why it matters: Without additional money, New Orleans could lay off sanitation workers, close a large homeless shelter and cut Mardi Gras cleanup.
The big picture: The average homeowner will pay about $200 more annually if the measure passes, Mayor Helena Moreno's administration says.
- They built a calculator, at budget chair Lesli Harris' request, that shows how much each home will pay.
- For example, the average market value for a home on the East Bank is $315,700, the calculator says. Its annual tax bill is currently $3,299.19.
- If the council votes to approve everything, it will add $190.01 annually.
Zoom out: The mayor's proposed 2027 budget includes roughly $80 million in spending cuts to balance the city's finances.
- Officials hope to make about $10 million in new fees and other recurring revenue. The biggest opportunity for revenue is from property taxes.
- If the council approves the proposal, the city could bring in another $20 million in revenue.
Zoom in: Andrew Tuozzolo, the mayor's special counsel, said Moreno would like to use the property tax money to reverse some of the most controversial proposed cuts. They include:
- 37 sanitation worker layoffs.
- Closing the low-barrier homeless shelter.
- Cutting NOPD civilian staffing and traffic response.
- Significantly reducing Mardi Gras cleanup.
- Cutting right-to-counsel, which provides legal serves to people facing eviction.
In the room: Several council members have opposed the cuts, especially to the sanitation department, but they have also expressed concern about putting more financial strain on residents.
- Council President JP Morrell says the council may have different priorities from Moreno, and the two sides will have to negotiate.
Yes, but: Even if the council approves the property tax increase, the budget would still have about $50 million in operating cuts, Tuozzolo says.
- Council members keep saying they'll have to make "tough" choices this year. The first one: deciding about the property tax.
- The Nov. 5 vote could change which services the city can afford.
- The council must adopt a balanced budget by Dec. 1.
The bottom line: You have until Nov. 5 to let your council member know which way to vote.