New Orleans Mayor Helena Moreno plans to present the proposed 2027 budget to the New Orleans City Council Tuesday.
This budget comes after the city held several meetings where public input was considered.
View the full proposal here.
What is being protected:
The most notable change to the 2027 budget is the lack of furloughs for city employees. Cuts would not be made to the New Orleans Recreation Department or the Council on Aging, and the city would make an effort to protect the New Orleans Police Department, the New Orleans Fire Department, and EMS personnel from major cuts.
The budget also seeks to protect essential city services like street repairs, sidewalk maintenance, and sanitation.
Addressing a shortfall:
Moreno’s proposed budget is $763 million, which is built around $748 million in recurring revenue.
Despite this, the city is still facing a roughly $100 million deficit going into 2027.
According to the proposed budget, the $100 million gap will be addressed with $77.7 million in direct cuts and $21.55 million in one-time or special-purpose funding to avoid any further reductions across the city.
Major cuts:
Some city departments were hit hard by budget cuts in the proposal.
The New Orleans Health Department is facing a 51% budget cut, Public Works a 35% cut, and the New Orleans City Council’s budget would be cut by 29%.
The NOPD faces a 2% reduction and the NOFD faces a 10% reduction in budget.
The budget also proposes tight reductions, including 152 full-time equivalent positions being reduced, a $1.75 million reduction to Mardi Gras post-parade cleanup services, a $5 million reduction in low-barrier shelter operations, and a $2.5 million cut to the Axon contract used for body cameras, in-car cameras, and Tasers.
Generating revenue:
This proposal includes rolling forward eligible millages, which is estimated to bring in $20 million in revenue. This move would raise property taxes for New Orleans residents.
The city is also considering raising short-term rental fees and increasing permit fees tied to inflation. Nonprofit parcel fees could also be enacted, according to the proposed budget.
State of the financial crisis:
The city’s presentation has an entire slide dedicated to how the budget crisis came to be.
The slide, titled “Inherited Chaotic, Misleading Budget for 2026,” references the former administration’s management of money.
The slide alleges years of delayed financial management, no money to make payroll, no savings except for the city’s rainy day fund, and a budget that far exceeded the city’s revenues.
Moreno’s letter to council members stresses that the city is in a much better financial position than last year, and acknowledges that the proposed budget is difficult.
What comes next:
The budget proposal would need to be adopted by the full council.
The 2027 budget must be adopted by the first week of December.
READ MORE:New Orleans 2027 budget proposal features no furloughs, major cuts. See the proposal here
