|
NEW ORLEANS, LA - During the Budget/Audit/Board of Review Committee meeting on Wednesday, February 25, 2026, Committee members received a presentation regarding budget reports and reporting recommendations. The Committee also discussed several pieces of legislation related to the budget appropriation.
CAO and Director of Finance Brief Committee on the City's Budget
Chief Administrative Officer (CAO) Joe Giarrusso and Director of Finance Alyssa Rambeau addressed the Budget Committee to share insights on several budget-related issues. First, CAO Giarrusso provided an overview of the current budget situation facing the administration. He highlighted that the Moreno Administration inherited severe budget challenges, and without immediate, substantial solutions, the City could soon run out of cash. Giarrusso emphasized that the 2025 spending deficit, along with the obligation to repay the 2025 Revenue Anticipation Note (RAN), has left the city with minimal room for error in managing the budget.
Looking ahead, the administration is pursuing several initiatives to improve budget efficiency, find new revenue sources, cut costs, and manage cash flow to handle these issues. Additionally, the administration is already working on increased transparency and reporting to the Council.
Currently, the City allocates about $44 million per month for personnel costs and $21 million for operating expenses. Annually, this totals $780 million, which is close to the 2026 General Fund budget of $799,750,000. However, early estimates suggest the budget could be about $20 million under the forecast. To improve the budget and manage finances, the Mayor, CAO, and the Louisiana Legislative Auditor (LLA) will meet weekly with the Department of Finance to review the City’s cash position. Additionally, the New Orleans Police Department (NOPD) is in the process of hiring a Comptroller to help oversee the department's finances, which receives the largest budget allocation among all executive branch departments.
Regarding budget initiatives, the administration has several underway to improve efficiency and management. These include using $2.8 million from the Entergy settlement to hire electricians and fix City lights, mandating that all change orders over $60,000 be approved in writing by the CAO, and various personnel-saving efforts, such as the ongoing hiring freeze and citywide furloughs.
The administration is also exploring new revenue opportunities for the City, such as revamping the website to make it easier for residents to pay sales tax online and refining the sales tax auditing process to improve collections.
The City also received $74.15 million in additional funds to the revenue budget from one-time revenue sources at the January 27, 2026, Revenue Estimating Conference. This includes funds from the Sewerage and Water Board, Wisner, reclassifying ARPA funds, parking, and more. It's important to note that the administration is closely monitoring and managing overtime spending in several different ways to ensure it does not get out of hand.
Committee Discusses Capital Budget Ordinances
The Committee recommended approval of two separate ordinances related to the 2026 Capital Budget. Ordinance No. 35,336 de-appropriates and appropriates $6,250,000 within the Department of Public Works. It moves 2019, 2021, and 2024 bonds from various completed or paused DPW projects to the DPW Infrastructure Team and Equipment project.
The Committee also discussed Ordinance No. 35,337, which de-appropriates $750,000 from the Departments of Property Management and Sanitation and appropriates the same amount to the Department of Parks and Parkways. It moves 2021 bonds from the Citywide Life/Safety Upgrades and Repairs project and moves 2024 bonds from the Sanitation Field Operations Office and Warehouse project to the Louis Armstrong Park Master Plan project.
Both items will be on the Regular Agenda for the Council meeting on February 26, 2026, with a note that they were recommended favorably by the Budget Committee.
Additionally, the Motions relating to the Civil Service Pay Plan and Rule Amendments approved by the Civil Service Commission were deferred for review at a later date.
|