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Agreement Between City and OPSB Ends Years’ Long Legal Battle
Deal Settles Major Tax Issues and Ensures Financial Stability that Benefits Taxpayers and Students Across City
NEW ORLEANS-Today, Mayor Helena Moreno, Orleans Parish School Board leaders (OPSB,) and the New Orleans City Council announced they’ve reached a deal ending a years-long legal dispute over tax fees with the OPSB. This agreement is a huge win for the City of New Orleans, ushering in a settlement that is both fiscally responsible for the board and the city while delivering long-term stability for all parties.
“We are pleased that negotiations with OPSB have reached this conclusion,” said Mayor Helena Moreno. “Our goal has always been to settle this amicably to put OPSB on firm financial footing while properly accounting for the cost of tax collection. Now that OPSB and the City of New Orleans have reached a deal in this legal battle that dates to 2019, we can look forward to educating our children in a way that is most cost-effective for taxpayers.”
Terms of the agreement are outlined below:
- The City of New Orleans foregoes all ad valorem collection for OPSB and no pension fee.
- The city will collect only 1.5% of the sales tax fee.
- OPSB receives $6 million in capital funds from the City of New Orleans
- OPSB receives $2 million a year for 15 years, beginning in 2027 from the City of New Orleans and $4 million a year under the Caesar’s lease beginning in 2030
- All terms to be reduced to a writing signed and approved by governing authorities and recited in court.
“We have always believed a fair, balanced solution exists that fully provides for the needs of our students while respecting the city's constraints,” said OPSB President Leila Eames. “Now that we’ve reached this deal, we can fully focus on our goal to educate the children of Orleans Parish.”
“After years of uncertainty, I am so encouraged that the City and the Orleans Parish School Board have finally reached a settlement,” said Council President JP Morrell. “This deal is a win for all parties involved: from the City to every student in Orleans Parish. I am in full support of this deal and believe we can finally move forward together.”
“Today’s agreement reflects what we can accomplish through collaboration and a commitment to real results,” said Council Vice President Matthew Willard. “This consensus puts an intractable legal issue between the City and OPSB behind us and allows us to focus on improving essential services for our students, teachers, and families. I'm glad we got the job done, and I'm eager to keep making progress toward our shared goals."
"This settlement agreement represents responsible fiscal leadership and a culture of collaboration between City and OPSB leadership,” said District A Councilmember Aimee McCarron. “I am proud to support this deal and look forward to officially considering it at our Council meeting."
“My priority as Budget Chair has been identifying opportunities to shore up the city’s financial position, and this settlement does just that,” said District B Councilmember Lesli Harris. “This agreement ends years of legal uncertainty and puts both the city and our schools on solid financial footing and that’s a win for every taxpayer and every student in Orleans Parish. I’m proud to have played a role in bringing this to a resolution and excited to vote yes on Thursday.”
“We are encouraged by the agreement reached between the City Council and the School Board and look forward to continued progress and ongoing collaboration moving forward,” said District C Councilmember Freddie King III.
"With the School Board’s 6-1 vote to approve this agreement, we are seeing meaningful progress toward resolving an issue that has impacted our schools and city for too long. The School Board, City Council, and Mayor Moreno’s Administration have demonstrated a shared commitment to the children of this city by prioritizing their needs above all else,” said District D Councilmember Eugene Green. “This agreement reflects what can be achieved when we work together in good faith. This is a strong example that, through partnership, we can accomplish amazing things for the future of our city."
“This settlement agreement is a win for the children of our amazing city. These resources will ensure financial stability within our schools and educational stability within the classroom for our students in the City of New Orleans,” said District E Councilmember Jason Hughes. “For me, the children were always at the center of these negotiations, and today we can be proud of this agreement on behalf of our students.”
The deal will be voted on by the New Orleans City Council on Thursday, May 7.
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