NEW ORLEANS  (Dec. 1, 2025) — The New Orleans City Council today advanced a balanced budget framework put forward by Mayor-elect Helena Moreno and the City Council, including current Budget Chair Joe Giarrusso and 2026 Budget Chair Lesli Harris to address the City’s significant fiscal challenges and ensure continuity of essential services.

Moreno inherited a $222.4 million budget deficit. Moreno, her transition advisors, financial consultants, and colleagues on the council identified some $74.5 million in additional revenue to balance the budget. The budget proposal was reviewed by the Louisiana Legislative Auditor to ensure the revenue estimates were real and conservative.

Moreno’s plan pairs conservative revenue estimates for 2026 with reductions in mayoral staffing, targeted cuts, and strategic reorganization of City functions. She underscored that her priority is to maintain core services while protecting frontline workers as much as possible. Many of the belt-tightening measures are temporary but necessary to address immediate challenges.

Throughout the process, Moreno and Giarrusso worked with Cantrell's Chief Administrative Officer and Chief Financial Officer.  But the Mayor refused to discuss the additional $74.5 million in revenue that was recognized by the City Council and budget experts. The Council invited engagement from Mayor LaToya Cantrell and her staff, but those offers were declined, with the Mayor citing the Thanksgiving holiday as a reason why they could not work on the budget. The Mayor also declined to vote on the proposed budget adjustments during this morning’s  Revenue Estimating Conference (REC) meeting.

The REC provides a recommendation to the City Council of the amount of revenues to be included in the operating budget for the year for which the forecast is made.

Ultimately, the City Council used its authority to act on behalf of the people and passed a balanced budget that puts essential services first. Moreno intends to convene an REC meeting on January 12, 2026, the day she is sworn into office.

“Let us not forget how we got here: by not actively managing the budget,” she added. “Those days are over. Beginning January 12, New Orleanians will see bold action and focused urgency to move this city in a new and better direction.”

"I am extremely grateful for the work of the Budget Chair Joe Giarrusso, Mayor-Elect Helena Moreno, and the members of the Cantrell Administration who put together a budget that avoids future furloughs, as well as avoids the 30% cuts across the board that the Mayor proposed. I am equally dismayed at the Administration's efforts to not only force 30% cuts, but to attempt to pass tremendous tax increases on citizens rather than find efficiencies in government during this tough economic climate. I look forward to this Council, the next Council, and the next Mayor working together to  implement budgets that are transparent and forward-facing, and to closing the chapter on the dysfunction of the Cantrell Administration," said Council President JP Morrell

“This budget is a product of continuous, difficult, and ongoing work with Mayor-Elect Moreno’s administration, my Council colleagues, and public discussions of the changes before the budget passed today. This required sacrifice from all of us and, while there will be more changes, this is a first step for delivering quality of life services in 2026,” said Councilmember Joseph I. Giarrusso III, District A, Chairperson for Budget, Audit, and Board of Review Committee

“As the incoming Council Budget Chair, I remain optimistic about our city’s future, while fully acknowledging the difficult work ahead as we navigate a significant financial crisis. I’m committed to partnering with Mayor-elect Moreno to create a transparent, honest, and open budgeting process that reflects our shared values and centers the priorities of New Orleanians,” said Councilmember Lesli D. Harris, District B

"Reaching this stage in the Council's commitment to a balanced budget has required an immense effort. With so many moving parts, we recognize there is still much work to be done. My ultimate goal is to ensure that the resources we have are distributed fairly and equitably,” said Councilmember Freddie King III, District C

"Despite a challenging fiscal environment, core priorities, including public safety, health and social services, early childhood education, and housing, remain protected. The City continues to invest in critical infrastructure and transportation assets such as Louis Armstrong International Airport and Union Passenger Terminal, as well as key elements of our cultural economy. This budget will operate under strengthened Council oversight and a more robust public engagement process. The Mayor-elect and City Council have a strong record of collaboration, and I am optimistic that a renewed spirit of cooperation and transparency in 2026 will move our city forward. We encourage the public to stay engaged throughout the year,” said Councilmember Eugene J. Green, Jr., District D

“After a very frustrating process, my greatest disappointment is that our former CAO, Gilbert Montano, was not here to answer critical questions and explain the reasoning behind the assurances he gave to my questions last year.  Our residents deserve that accountability.   Thank you to Councilmember Giarrusso and the rest of our team for working with us to ensure we at least now have a budget that, on its face, doesn't add extra financial burdens on an already struggling community.  This is not the end of the work, but it is a step toward protecting our residents from further hardship,” said Councilmember Oliver M. Thomas Jr. , District E

Moreno said, “Our budget must reflect what matters most to New Orleanians. We will fully fund those priorities, especially public safety, and direct resources where they deliver the greatest impact for our residents.”

Fully Funded Departments:

*All NOPD, NOFD, EMS, and OPCD overtime is reflected in the CAO’s budget

**Code Enforcement 2026 budget, all funds, is $10.5M primarily through self-generated revenue

Overtime set aside: $38.9 million set aside in CAO

• NOPD: $23,500,000
• NOFD: $5,900,000
• EMS: $3,500,000
• OPCD: $1,000,000
• Other: $5,000,000

View the meeting agenda click here, or watch the full meeting on YouTube.