New Orleans voters approve tighter City Hall spending rules
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New Orleans voters approved a charter amendment Tuesday aimed at making City Hall more financially responsible.
Why it matters: The amendment, which goes into effect Jan. 1, requires departments to get council approval before spending more than their budgeted amount.
- It's part of a broader effort to prevent the kind of overspending that contributed to the city's financial crisis.
The big picture: New Orleans residents passed the measure with 61% of the vote, based on preliminary figures from the Secretary of State's office.
- It locks the budget after the council approves it, says City Council President JP Morrell, who proposed the amendment. Mayor Helena Moreno supported the measure.
- City Hall's finance leaders must also submit monthly spending reports to the council.
Zoom in: Thursday, council members will vote on another measure aimed at righting the city's finances — as they weigh whether to increase property taxes to avoid some of the proposed layoffs and cuts to essential services.
- The measure could add $100 to $200 to the average homeowner's tax bill, depending on which property tax rates the council approves. See the calculator.
- 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.
Reality check: The city will still have to make about $50 million in cuts, even if the council passes the property tax proposal, says Andrew Tuozzolo, the mayor's special counsel.
- The mayor laid out her preference for which cuts she'd like to restore with the property tax revenues, but council members have the ultimate say.
- The council agrees with prioritizing funding for the low-barrier shelter and post-Mardi Gras cleanup, budget chair Lesli Harris says, "but there are some other priorities that we're sorting through."
Zoom out: Councilmembers recently wrapped up a month of budget hearings and are negotiating which services to fund and where to find operational efficiencies, Harris says.
- Depending on how the vote goes Thursday, they'll adjust their plans, she says.
What's next: They'll vote Nov. 19 on the final budget.
Go deeper: New Orleans' proposed property tax increase, explained