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NEW ORLEANS, LA - On Wednesday, September 17, 2025, the Budget, Audit, and Board of Review Committee convened to discuss several legislative items on the City budget. Members of the Committee also held discussions with representatives from the Chief Administrative Office and the Finance Department regarding updates on the City budget for 2025.
Update on the City Budget
Chief Administrative Officer (CAO) of New Orleans Joseph Threat; Chief of Staff, Jonathon Harris; Director of Finance, Romy Samuel; and others gave a presentation before the Committee regarding the current standing of the City budget as of September 17, 2025. To begin the discussion, Threat informed the Committee that he is taking immediate measures to get spending under control through actions such as curtailing contracts and expenses effective September 30, as well as freezing both hiring and travel expenses.
During the presentation, the representatives projected a $64,697,124 deficit without intervention strategies if every dollar of the appropriated fund balance were spent. Though representatives from the administration claimed signs of a significant deficit began to surface as early as February 2025, the Committee asserted that they were not made aware of that deficit until the City withdrew from the Orleans Parish School Board settlement. This limited the time, planning, and steps the Committee and Council could take to curtail spending and expenses.
After lengthy discussions, the Committee and representatives of the CAO agreed that it was imperative to convene and plan the following steps to eliminate the 2025 deficit and develop a budget plan for 2026 based on accurate, sustainable figures. To view the full City budget discussion, click here.
Water Revenue Bonds
The Committee recommended Resolution R-25-482 for approval by the Council. If approved, this resolution would grant preliminary approval for the City to issue up to $91 million in Water Revenue Bonds through the Sewerage and Water Board. The bonds will fund capital improvements and issuance costs for the city’s water system, with repayment coming from water system revenues.
Department of Finance to Increase Enforcement of Existing Sales Tax Laws
The Committee recommended Motion M-25-481 for approval in response to the City’s over $100 million budget shortfall. If approved, this motion would require the Department of Finance to increase enforcement of existing sales tax laws before considering a sales tax hike. While the Administration has proposed raising the local sales tax from 2.5% to 3% to generate $35 million, the Council notes that the Department performed only 26 sales tax audits in 2024—far fewer than Jefferson Parish’s 300. The motion orders the Department to raise audit levels to match peer parishes and, if lacking capacity, to issue an RFP for a third-party auditing service on a contingency fee basis.
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