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NEW ORLEANS, LA - On Tuesday, May 19, 2026, the Budget/Audit/Board Committee convened to receive monthly budget reports from the mayor’s administration, as well as approve several budget-related ordinances.
Monthly Budget Report
Chief Administrative Officer (CAO) Joe Giarrusso gave a presentation before the committee reviewing the city’s financial situation in Q1 of 2026, as well as the future going into the rest of the year.
In the first quarter of 2026, the Moreno Administration and the New Orleans City Council took aggressive steps to stabilize the City’s finances after inheriting a major budget crisis. Both administrations identified sizable sources of revenue, including funds from the Caesars lease agreement, Municipal and Traffic Court, and the Assessor’s Office, while preserving the City’s $36 million savings fund. The city also secured a $125 million Revenue Anticipation Note (RAN) to maintain payroll operations and reduced the 2026 budget by $73 million relative to 2025 spending levels.
The Administration implemented major cost-containment measures to improve long-term fiscal stability, including reducing overtime spending by nearly 49%, instituting a hiring freeze, consolidating positions, cutting travel costs, and streamlining operations. A targeted furlough program has generated approximately $1,133,939 in savings.
Despite these efforts, CAO Giarrusso emphasized that one-time revenues alone will not resolve the City’s structural challenges. The Administration plans to propose additional recurring revenue measures and operational efficiencies later this year, while continuing disciplined cash management and conservative budgeting to restore long-term fiscal sustainability.
To view the full presentation, click here.
Committee Reviews Budget-related Ordinance
The committee voted on several pieces of legislation relating to the city budget.
See a full list of the Legislation the committee recommended for approval below:
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Ordinance No. 35,432 - This Ordinance establishes Division 56 of Chapter 70, Article III of the Code of the City of New Orleans to create the 2026 Caesars Lease Rent Strip Sale Proceeds Fund, dedicated to housing the City’s proceeds anticipated from the sale of certain future lease payments from Jazz Casino Company, L.L.C. for the Caesars New Orleans Casino, to create restrictions on expenditures; and otherwise to provide with respect thereto.
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Ordinance Nos. 35,435 and 35,436 - These Ordinances amend Ordinance Nos. 30530 M.C.S. and 30531, as amended, entitled "An Ordinance Providing an Operating Budget of Revenues and Expenditures for the City of New Orleans for the Year 2026", to appropriate grant funds to the to promote healthy behaviors and access to high quality healthcare. The grant supports the Health Department with providing these services through community outreach staff; and otherwise to provide with respect thereto. Description: Description: Transfer $5,000 from Intergovernmental Revenues (Fund 6699) to the Louisiana Dept. of Health and Human Services (Fund 4405) in the Health Dept. (200-Other Operating).
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Ordinance Nos. 35,437 and 35,438 - These Ordinances amend Ordinance Nos. 30530 M.C.S. and 30531, as amended, entitled “An Ordinance Providing an Operating Budget of Revenues and Expenditures for the City of New Orleans for the Year 2026”, to appropriate private grant funds to the Health Department from the Robert Wood Johnson grant for operating expense; and otherwise to provide with respect thereto. Description: Transfer $16,231 from the Intergovernmental Revenues (Fund 6699) to Private Grants (Fund 4900) in the Health Dept. (200-Other Operating).
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Ordinance Nos. 35,439 and 35,440 - These Ordinances amend Ordinance Nos. 30530 M.C.S. and 30531, as amended, entitled “An Ordinance Providing an Operating Budget of Revenues and Expenditures for the City of New Orleans for the Year 2026”, to appropriate private grant funds to the New Orleans Health Department’s Office of Violence Prevention for professional services related to violence prevention and victim support initiatives.; and otherwise to provide with respect thereto. Description: Transfer $430,088 from Private Grants (Fund 4900) to the Health Department (Fund 4900) in 200-Other Operating.
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Ordinance No. 35,441 - This Ordinance amends 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 transfer funds in Personal Services and Other Operating from the Department of Public Works to the Police Department for Grounds Transportation; and otherwise to provide with respect thereto. Description: Transfer $3,953,359 from Intergovernmental Revenues (Fund 6699) to the General Fund (Fund 1000) in the Department of Police (100-Personal Services $2,566,359; 200-Other Operating $1,387,000).
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Ordinance No. 35,442 - This Ordinance amends 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 transfer funds within the NORDC FY 2026 budget from Personnel Services to Other Operating Expenses to correct a classification error and allow the funds to be used for operational, programmatic, and facility maintenance needs without increasing the overall budget; and otherwise to provide with respect thereto. Description: Transfer $1,593,000 from the General Fund (Fund 1000) in the New Orleans Recreation Development Commission (NORD-C) in 100-Personal Services, and transfer to 200-Other Operating.
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Ordinance Nos. 35,443 and 35,444 - Ordinances amend Ordinance Nos. 30530 M.C.S. and 30531, as amended, entitled “An Ordinance Providing an Operating Budget of Revenues and Expenditures for the City of New Orleans for the Year 2026”, to appropriate funds to allow the City of New Orleans to implement components of the French Quarter Economic Development District’s 2026 adopted budget; and otherwise to provide with respect thereto. Description: Transfer $556,974 from Intergovernmental Revenues (Fund 6699) to the French Quarter Development District (Fund 5128) in the Health Department (100-Personal Services $131,463), and in Miscellaneous Program (200-Other Operating $425,511).
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Ordinance No. 35,445 - This Ordinance amends 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 Public Works and the Department of Property Management; to appropriate funds to the Chief Administrative Office; and otherwise to provide with respect thereto. Description: De-Appropriate $1,600,000 from "2024 A Bonds" from the Departments of Public Works and Property Management, and Appropriate $1,600,000 in "2024 A Bonds" to the Chief Administrative Office. This honors the commitment made by the previous administration to the Desire Community Housing Corp. in support of the Desire Square construction.
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