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NEW ORLEANS, LA - On Thursday, March 19, 2026, the Budget/Audit/Board of Review Committee convened to discuss and vote on several pieces of Legislation, as well as to hear reports from members of the Chief Administrative Office regarding January 2026 budget reports and the City's current financial condition.
Presentation of City's 2025 Audit Planning Communications
The Committee heard a presentation from Becky Hammond, a partner of CRI Advisors, LLC, and Carr, Riggs & Ingram, LLC. The presentation explained the annual audit process, focusing on transparency, oversight, and the auditors' roles. It covers the 2025 fiscal year's governmental activities, major funds, and component units, and provides opportunities for follow-up discussion. Fieldwork starts on March 30, 2026, with the final report due by June 30, 2026.
Presentation from Downtown Development District
Representatives from the Downtown Development District presented its annual overview for 2025, covering its structure, services, budget, and key accomplishments. The DDD, established in 1974, is an independent agency overseen by an 11-member board and staffed by 27 employees. It manages a 160-block area of downtown New Orleans with a $9.8 million budget, focusing on Cleaner, Safer, and Stronger services.
"Cleaner" services ($4.1M) involve sanitation, debris pickups, weed abatement, trash surveys, pressure washing, graffiti removal, and quality checks in busy areas. "Safer" services ($3.2M) include 24/7 safety efforts via NOPD, private security, and more. "Stronger" initiatives ($1M) focus on economic development, public policy, marketing, increasing funding, and more. The DDD also coordinated Super Bowl LIX infrastructure projects.
Additional special projects include enhancements to public spaces such as the French Doors Project, artistic and lighting displays on Lafayette Street, and landscaping updates at key BioDistrict entrances.
Voting on Budget-Related Legislation
The Committee voted on several pieces of Legislation, relating to the 2026 Operating Budget of Revenues and Expenditures. The Committee also recommended approval of a resolution (R-26-124) to approve the Sixth Supplemental Water Revenue Bond Resolution related to the issuance of up to $66,000,000 of Water Revenue Bonds for the City of New Orleans, Louisiana. It's important to note that this resolution has no fiscal impact on the City.
See a full list of the Legislation the Committee recommended for approval below:
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R-26-124 - Resolution approving the Sixth Supplemental Water Revenue Bond Resolution in connection with the issuance of not exceeding Sixty-Six Million Dollars ($66,000,000) of Water Revenue Bonds of the City of New Orleans, Louisiana
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Ordinance No. 35,358 - AN ORDINANCE to amend Ordinance No. 30530 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Revenues for the City of New Orleans for the Year 2026”, to appropriate grant funds to the Health Department for the Healthy Start program to reduce infant mortality and improve health outcomes for pregnant women
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Ordinance No. 35,359 - AN ORDINANCE to amend Ordinance No. 30531 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Expenditures for the City of New Orleans for the Year 2026”, to appropriate grant funds to the Health Department for the Healthy Start program to reduce infant mortality and improve health outcomes for pregnant women
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Ordinance No. 35,360 - AN ORDINANCE to amend Ordinance No. 30530 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Revenues for the City of New Orleans for the Year 2026”, to appropriate grant funds to the Health Department for the FY25 BOLD (Building Our Largest Dementia) Public Health Program
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Ordinance No. 35,361 - AN ORDINANCE to amend Ordinance No. 30531 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Expenditures for the City of New Orleans for the Year 2026”, to appropriate grant funds to the Health Department for the FY25 BOLD (Building Our Largest Dementia) Public Health Program
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Ordinance No. 35,362 - AN ORDINANCE to amend Ordinance No. 30531 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Expenditures for the City of New Orleans for the Year 2026”, to reappropriate General funds from the Department of Public Works – 100 – Personnel Services to Miscellaneous Programs – 100 – Personnel Services and Chief Administrative Office 200 - Other Operating to support other Mayoral priories
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Ordinance No. 35,363 - AN ORDINANCE to amend Ordinance No. 30530 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Revenues for the City of New Orleans for the Year 2026”, to appropriate Federal funds awarded by FEMA to the City of New Orleans to cover emergency cleaning and other services during the aftermath of Hurricane Ida
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Ordinance No. 35,364 - AN ORDINANCE to amend Ordinance No. 30531 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Expenditures for the City of New Orleans for the Year 2026”, to appropriate Federal funds awarded by FEMA to the City of New Orleans to cover emergency cleaning and other services during the aftermath of Hurricane Ida
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Ordinance No. 35,365 - AN ORDINANCE to amend Ordinance No. 30530 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Revenues for the City of New Orleans for the Year 2026”, to appropriate grant funds to the Health Department for the FY25 Maternal Child Health Policy Innovation Program
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Ordinance No. 35,366 - AN ORDINANCE to amend Ordinance No. 30531 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Expenditures for the City of New Orleans for the Year 2026”, to appropriate grant funds to the Health Department for the FY25 Maternal Child Health Policy Innovation Program
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Ordinance No. 35,367 - AN ORDINANCE to amend Ordinance No. 30530 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Revenues for the City of New Orleans for the Year 2026”, to appropriate funds to the New Orleans Police Department for additional funding to support normal operational expenses
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Ordinance No. 35,368 - AN ORDINANCE to amend Ordinance No. 30531 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Expenditures for the City of New Orleans for the Year 2026”, to appropriate funds to the New Orleans Police Department for additional funding to support normal operational expenses
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Ordinance No. 35,369 - AN ORDINANCE to amend Ordinance No. 30530 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Revenues for the City of New Orleans for the Year 2026”, to appropriate additional funds to the Office of Housing Policy and Community Development from The Shelter Plus Grant Program
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Ordinance No. 35,370 - AN ORDINANCE to amend Ordinance No. 30531 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Expenditures for the City of New Orleans for the Year 2026”, to appropriate additional funds to the Office of Housing Policy and Community Development from The Shelter Plus Grant Program. The initial estimated budgeted amount to operate the program was $609,425.00, and the awarded amount was $716,016
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Ordinance No. 35,371 - AN ORDINANCE to amend Ordinance No. 30530 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Revenues for the City of New Orleans for the Year 2026”, to appropriate funds to the Law Department for settlement payments
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Ordinance No. 35,372 - AN ORDINANCE to amend Ordinance No. 30531 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Expenditures for the City of New Orleans for the Year 2026”, to appropriate funds to the Law Department for settlement payments
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Ordinance No. 35,373 - AN ORDINANCE to amend Ordinance No. 30530 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Revenues for the City of New Orleans for the Year 2026”, to appropriate State Act 461 Funds to CAO-Capital Projects for the Desire Housing Community Corporation Center
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Ordinance No. 35,374 - AN ORDINANCE to amend Ordinance No. 30531 M.C.S., as amended, entitled “An Ordinance Providing an Operating Budget of Expenditures for the City of New Orleans for the Year 2026”, to appropriate State Act 461 Funds to CAO-Capital Projects for the Desire Housing Community Corporation Center
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Ordinance No. 35,375 - AN ORDINANCE to amend and re-ordain Ordinance No. 30,141 M.C.S., entitled “An Ordinance Providing a Capital Budget for the Year 2025” in accordance with the provisions of Sections 3-117 and 4-206(1)(f) of the Home Rule Charter of the City of New Orleans
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Ordinance No. 35,376 - AN ORDINANCE to amend and re-ordain Ordinance No. 30,532 M.C.S., entitled “An Ordinance Providing a Capital Budget for the Year 2026”, to effect the following change to the 2026 Capital Budget: to de-appropriate funds from the Department of Property Management, the Office of Resilience and Sustainability, and the New Orleans Recreation Development Commission; to appropriate funds to the Department of Property Management, the Department of Public Works, the New Orleans Fire Department, the New Orleans Recreation Development Commission, and the Office of Resilience and Sustainability
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Ordinance No. 35,385 - AN ORDINANCE to amend Ordinance No. 30,531 M.C.S., as amended, entitled “An Ordinance providing an Operating Budget of Expenditures for the City of New Orleans for the Year 2026” to appropriate funds to the Public Educational and Government Access Support Fund
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Ordinance No. 35,386 - AN ORDINANCE to amend Ordinance No. 30,530 M.C.S., as amended, entitled “An Ordinance providing an Operating Budget of Revenues for the City of New Orleans for the Year 2026” to appropriate funds to the Public Educational and Government Access Support Fund
Finance Department Briefs Committee on Budget Reports
First, Alyssa W. Rambeau of the Finance Department gave a presentation before the Committee on the January 2026 budget reports. The January 2026 Executive Summary provided an early overview of the City's financial status, highlighting year-to-date deficits, revenue performance, and cost-control initiatives.
By January 31, 2026, city expenditures surpassed revenues by $50 million. Revenue collections reached 86% of the forecast, outperforming January 2025, but property tax collections still lagged behind projections. Total personnel and operating costs totaled $126.8 million, accounting for 16% of the budget and covering pre-transition spending. These costs are expected to decrease after layoffs in mid-January and furloughs in February. Overtime remains lower than last year due to active cost monitoring, though Mardi Gras expenses could affect future reports.
Staffing levels indicate a 5% vacancy rate with 250 unfilled positions. A hiring freeze restricts new hires to essential or revenue-producing roles, mainly impacting the Aviation Board, Mayor's Office, Library, and NORD. Despite early deficits, the General Fund shows a combined unaudited balance of $71.59 million, with a forecast for 2025. However, officials warn that this figure may change and that it is too soon to predict the City's full-year finances.
Presentation from CAO Giarrusso on City's Current Financial Situation
Next, Chief Administrative Officer (CAO) Joe Giarrusso gave a presentation before the Council regarding the reality of the City's current Financial Condition.
The Chief Administrative Office's financial team, together with the City's partners, projected the City's cash flow if the Administration and Council do not take action to address the current issues. These projections indicated that the City could run out of cash by early April 2026, with a deficit reaching -$3.3 million by April 10 and possibly reaching -$133 million by late September if no measures are implemented.
Short-term options to remedy the situation include using the $35 million Rainy Day Fund as a last resort, negotiating delayed payments, addressing unfunded mandates, and expanding furloughs or layoffs. Expanded furloughs could save up to $1.6 million per month, while deeper cuts, such as layoffs, would yield additional savings but also incur administrative and morale costs. However, CAO Giarrusso emphasized that the Administration has considered further furloughs, layoffs, and dipping into the City's $35 million Rainy Day Fund as last resort options.
The main long-term plan is to avoid another short-term Revenue Anticipation Note (RAN) by borrowing against the City's general alimony millage. This method could produce $95–$125 million in one-time funds without raising annual debt payments, helping stabilize cash flow and support a balanced budget. Additional measures include stricter fiscal controls and cost reductions totaling approximately $36.5 million. The City is also increasing revenue by boosting enforcement and audits.
The Administration's overall plan to remedy the current financial situation is to pay off the 2025 RAN, manage cash flow with the previously discussed measures, pursue long-term borrowing rather than short-term solutions, and address the structural budget deficit through ongoing spending cuts and revenue increases to avoid future financial instability.
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