NEW ORLEANS, LA — Following yesterday’s emergency budget hearing, Councilmember Lesli Harris expressed deep concern over the City’s worsening fiscal crisis and called for stronger long-term financial planning and safeguards to prevent future shortfalls.

The New Orleans City Council was informed that these latest budget gaps stem in part from delayed federal reimbursements and advancement of JIRR funds due to the ongoing federal government shutdown, which has stalled critical payments to local governments across the country. The shortfall is coupled with the already expected budget issues related to the extraordinary overtime costs related to the New Year’s Eve terrorist attack and heightened security demands during this year’s Super Bowl.

While these factors have created immediate cash-flow challenges, Councilmember Harris emphasized that New Orleans’ lack of a meaningful rainy day fund has left the city unprepared to weather such disruptions.

“We as a city must start to prepare for the unexpected. These past few weeks have demonstrated the desperate need for a more robust rainy day fund and council oversight to prevent unbudgeted expenditures,” said Councilmember Harris. “Our city faces unique challenges, from hurricanes and infrastructure emergencies to unexpected national events, and we must have a financial cushion in place to protect our workers and residents when those crises hit.”

She continued, “City employees and residents shouldn’t have to wonder whether payroll will be met or services will continue. This isn’t just about balancing a budget; it’s about rebuilding public trust and showing that New Orleans can plan responsibly for its future.”

Today, the City Council will vote on an ordinance to apply for a $125M revenue bond loan from the bond commission, enabling the City to maintain payroll.