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NEW ORLEANS, LA - On Wednesday, October 22, 2025, the Council held a special Budget, Audit, and Board of Review Committee to discuss an important update regarding 2025 budget expenditures. Members of the Chief Administrative Office, including Chief Administrative Officer (CAO) Joe Threat, appeared before the Committee to provide these updates.
Update on 2025 Budget Expenditures
Representatives from the administration informed the Council that they had uncovered an urgent cash flow issue that could affect government employees' payroll for the remainder of 2025, and that gap funding may be necessary to cover costs through the end of the year. CAO Joe Threat also explained that the federal government shutdown has caused delays in critical funding that the administration has relied on to meet budgetary needs for the rest of the year. The administration did not foresee this potential roadblock and thus did not alert the Council to the possibility in advance.
The administration acknowledged that factors such as overtime spending were significant contributing factor to the deficit the city now faces. Events such as the January 1 terrorist attack, the Sugar Bowl, the January 21 snowstorm, the Super Bowl, and more exacerbated the overtime spending issue to a severe degree.
The Council expressed frustration that, despite the previous CAO's assertion that the administration did not foresee furloughs or a payroll pause, the outlook changed drastically in such a short time frame. Again, the Council emphasized that establishing a tighter structure of communication between the administration and the Council as a whole is imperative moving forward, especially regarding budget concerns. Additionally, the Council noted that it is essential to curtail frivolous spending within departments, as well as to identify and settle outstanding litigation to generate additional revenue. The Council also affirmed that they will do everything within their power to ensure city employers are paid for the remainder of the year.
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