The Orleans Parish School Board voted Tuesday morning to end a yearslong legal battle with the city of New Orleans over funding for public schools.
A special meeting was called for Tuesday, and on the agenda was the proposed settlement with the city.
The school board voted 6-1 to approve the settlement.
According to the settlement deal, the city will stop charging OPSB a fee to collect ad valorem taxes in perpetuity and will also end charges related to city pension obligations.
However, beginning in 2027, OPSB will be charged a 1.5% fee on sales and use taxes.
Under the agreement, the city will make a $6 million payment to OPSB, along with annual $2 million payments for 15 years starting in 2027.
The settlement also includes $4 million payments from Caesars starting in 2030.
The settlement comes following a lawsuit against the previous administration for backing out of a funding deal for public schools.
The school board approached the city of New Orleans in 2018 regarding money it believed the district was owed through taxes.
In 2019, the school board sued the city for those funds, and the November agreement was the beginning of a discussion on terms for a settlement.
The first $10 million was supposed to be allocated in 2024, with an additional $10 million on April 1, 2025.
The remaining $16 million would be identified and secured by the school district.
However, during Mayor LaToya Cantrell’s administration, the deal fell apart after Cantrell backed out of it. Cantrell said the reason for backing out was due to the city’s looming financial issues.
The school board and city have been in settlement discussions ever since.
The city of New Orleans will hold a news conference at 2:30 p.m. to provide an update on the legal matter.
The settlement proposal now goes to the New Orleans City Council for a vote Thursday.
READ MORE:OPSB votes to approve settlement in yearslong lawsuit with city. Here’s what happens next
