NEWS

At a special City Council meeting on September 22, the Mayor and her Chief Administrative Officer laid out a budget built on cuts, protected core services, and a menu of possible new revenue, including a property tax millage roll forward. The Council now begins ten budget hearings before adoption in late November or early December.

By Kim M. Braud | October 5, 2026

NEW ORLEANS - Mayor Helena Moreno opened her 2027 Executive Budget Address to the New Orleans City Council with a message she directed past the dais to residents.

"Let me start by saying that we have heard you." - Mayor Helena Moreno

She said the administration heard it through community budget meetings, through hundreds of surveys and comments, and in neighborhoods every day. Residents, she said, want city services that work: safer neighborhoods, better streets and sidewalks, working streetlights, recreation for children, and a government that responds.

Then she named the second thing residents told her. Their own budgets are tight. Groceries, gas, insurance, housing, and utilities all cost more.

"So, as we build the 2027 budget, we have to balance two realities," Moreno said. Residents deserve better services, she said, and the city must also respect how hard it is for people to pay more.

This is a tough budget. There are significant reductions in it.

The Mayor was direct about the scale. "This is a tough budget," she told the Council. "There are significant reductions in it. There are choices none of us would make if resources were unlimited."

She also argued the city stands on firmer ground than a year ago. Last year, she said, the city faced an immediate financial crisis: strained cash, reserves under pressure, and heavy reliance on one-time money for recurring expenses. The administration shrank government, cut overtime, cut travel by 90 percent, consolidated offices and positions, tightened spending controls, and moved eligible infrastructure costs from the general fund to the bond fund.

"Last year we had to make difficult decisions to get out of a financial crisis," she said. "This year we have to make difficult decisions to make sure that we do not fall back into one."

Moreno broke from one tradition. Department heads usually fill the chamber during the Mayor's budget remarks. She said she told them to stay at their posts instead.

She closed by framing the proposal as a starting point. "This proposal is the beginning of the budget process, not the end," she said, adding that some numbers may change as the Council hears from departments and residents. And if residents are asked to contribute more, she said, "they should be able to see and feel the value of what they are receiving in return."

The meeting and why it was called

The special meeting convened Tuesday, September 22, at 10 a.m. in Council Chambers at City Hall. Clerk of Council Aisha R. Collier read into the record a letter dated August 17, 2026, in which Council President JP Morrell called the meeting under his authority in the Home Rule Charter to receive the 2027 Executive Budget Address and any other matter the Council may lawfully consider.

Before the Clerk began, Morrell announced a correction: the order posted on the Council website was wrong. The budget meeting would go first, and the utilities meeting would follow it.

Six members answered the roll, constituting a quorum: President Morrell, Vice President Matthew Willard, and Councilmembers Aimee McCarron (District A), Lesli D. Harris (District B), Eugene J. Green, Jr. (District D), and Jason Hughes (District E). Councilmember Freddie King III (District C) was absent at roll call. According to the minutes, he arrived later and took part for the rest of the meeting.

The numbers behind the gap

Chief Administrative Officer Joe Giarrusso presented the budget after the Mayor left the chamber. He put the bottom line first.

The city projects about $748 million in recurring general fund revenue for 2027. Departments requested about $847 million, which Giarrusso said is roughly level with 2026 spending. That leaves a gap of about $100 million.

Giarrusso said the administration had flagged this for months. He pointed to the Council's June 15 budget committee materials, which noted that the 2026 budget of roughly $800 million included up to $100 million in one-time revenue that would not recur.

To close the gap, the proposal uses two tools:

• About $21.55 million in one-time and special-purpose funding. Giarrusso broke it down as $15 million in federal grant reimbursements the city is owed (up from the $11.5 million the Revenue Estimating Conference had projected), repurposed Community Development Block Grant funds, much of it for the Department of Public Works, and about $550,000 left in the Neighborhood Housing Improvement Fund, to be used for blight expenses.
• About $77 million in direct reductions.

One-time money makes up about 2 percent of the proposed 2027 budget, Giarrusso said, compared with 18 percent in 2026. He called that "a monumental step forward."

With the one-time reimbursements added, the 2027 general fund forecast reaches $763,338,653, according to the administration's presentation. That is about $36.4 million, or 4.55 percent, below the $799.75 million general fund adopted for 2026, according to the proposed budget book. Across all funds, the proposed 2027 budget totals about $1.47 billion, down 7.6 percent from about $1.59 billion adopted for 2026.

Where the $77 million in cuts come from

The administration's presentation lists four categories of reductions:

• CAO budget, about $19 million. Mostly contingency the CAO's office had built in. He said offering it first spares departments deeper cuts and does not affect current personnel or operations.
• Outside agencies, $8 million. Agencies were instructed to reduce their budgets.
• Personnel, about $23 million. This includes a potential reduction of 152 full-time equivalent positions, plus overtime and other personnel costs.
• Other operating and contractual costs, $27 million.

The 152 positions come on top of about 200 already eliminated this year. Giarrusso said that brings city staffing back to roughly its 2019 size, after a high point in 2024 driven by federal COVID relief (ARPA) money.

He gave one example of how positions were chosen: an NOPD cadet program budgeted for eight positions currently has one person in it. The presentation lists the cadet program reduction at $250,000.

The presentation also itemizes the proposed reductions line by line. The largest after the CAO's $19 million are $8.5 million in Fire Department costs, $5 million in low-barrier shelter operations, a $4.6 million reduction to the Clerk of Criminal District Court allocation, $4.3 million in NOPD non-officer staffing, and $2.5 million from the Axon contract for body cameras, in-car cameras, and Tasers. The administration notes that the itemized list comes within about $1 million of the total cuts in the city's budgeting system, and that items may be adjusted up or down, or eliminated, as the process continues.

The gap is $99 million, and the payments to outside agencies is $98 million.

What the proposal protects

The Mayor and CAO both stressed several commitments:

• No furloughs in 2027. Giarrusso said the administration had heard rumors otherwise and wanted "to put that to rest."
• No cuts to NORD or the Council on Aging.
• Frontline public safety and basic services prioritized: police officers, EMS, fire, curbside sanitation pickup, street and sidewalk maintenance, and streetlight repairs.
• A continued 10 percent pay cut for the Mayor and the CAO. Giarrusso called this the one reduction he would ask the Council not to touch. The presentation values it at $50,000.

EMS shows an increase of about 8 percent, to $16.1 million, which Giarrusso tied to higher EMS revenue. Compared with expected 2026 spending, the Fire Department's proposed budget falls about 10 percent, to $127.1 million, and NOPD's about 2 percent, to $167.1 million. Giarrusso attributed much of that to costs that were never properly budgeted: retention pay, large terminal leave payouts, enhanced police recruiting, and an improperly budgeted fire grant. The proposed NOPD budget is also $16 million, or 9 percent, below the department's own $183 million request, and reflects the transfer of parking, booting, and towing to NOPD.

How much is already committed

Giarrusso walked through what he called obligations that consume most of the general fund before any other service is funded. Of about $763 million, he said, nearly $576 million is committed:

• Public health and safety agencies: $352 million (police, fire, EMS, NOHSEP, Public Safety Support, OPCD, mosquito control, health, and the Juvenile Justice Intervention Center)
• Outside agencies: $98 million
• Health care costs: $60 million
• Firefighters' pension: $48 million
• Debt service: $18 million

That leaves about $187 million for every other city service, according to the presentation.

Costs that were never in the budget

Giarrusso said three recurring costs were budgeted at zero in 2026 even though the city paid them. The 2027 proposal includes them:

• Debt service: $18,225,473, now housed in the Finance Department. That is why Finance's general fund budget roughly doubles, from $19.3 million to $38.7 million.
• Retention pay: $2,380,920, down from about $5 million in actual 2026 spending, as the largest payouts were concentrated in 2023 through 2025
• Terminal leave: $3,650,000, down from about $6 million in 2026, which Giarrusso said was elevated during the transition

He also described what the administration found at the start of 2026: not enough cash to make payroll, no savings beyond the emergency rainy day fund, accounts that showed balances on paper but not in the bank, budgeted retention payments with no money behind them, and 2026 departmental requests of $948 million against $725 million in revenue.

Reserves

The city's unassigned fund balance holds about $100 million from the Caesars deal, Giarrusso said, which has earned about $1.3 million in interest since May. The administration also moved the rainy day fund into an interest-bearing account, where it has earned about $230,000. Together, the two accounts hold about $138 million.

The Government Finance Officers Association recommends reserves of about 16 percent of the general fund. Giarrusso said the city is slightly above 18 percent. He said the Caesars money will not be used in the 2027 budget and, barring an emergency, "there is zero plan to touch that." Interest stays in the accounts, he confirmed in response to Councilmember Willard.

Possible new revenue

Giarrusso presented options that could reduce, but not eliminate, the cuts. He called them potentials, "not done deals":

• Property tax millage roll forward: more than $20 million for the city's general fund and dedicated city services, and about $42 million if every proposed millage is rolled forward (see below)
• Increase in the nightly short-term rental fee: $4 million to $5 million
• Inflation adjustment to permit fees and new upfront application fees: $1.5 million to $2 million
• Fees on nonprofit properties: unlikely for 2027, he said, because the measures require voter approval. He pointed to 2028.

The millage roll forward, explained

One mill equals $1 of tax for every $1,000 of taxable assessed value. In New Orleans, Giarrusso said, one mill now raises about $5.58 million.

When assessments rise, voter-approved millage rates automatically roll back so that the taxing body collects about the same total. The governing body may then vote to roll the rate forward toward the voter-approved maximum. Giarrusso noted the city has not fully rolled forward since about 2015.

Total city millages stood at 134.53 mills in 2023 and 121.20 in 2026. The proposal would raise them to 128.64 mills if fully approved. The proposal does not include the Orleans Parish School Board (which has already rolled forward), the Sheriff, or the Sewerage and Water Board.

The presentation breaks the estimated additional revenue into four groups:

• City general fund (general alimony and unrestricted millages): about $10.16 million
• City dedicated use (police protection, fire protection, Parks and Parkways, and NORD): about $11.39 million, restricted to those purposes
• Police and fire platoon millage: about $4.36 million
• Other agencies (public library, early childhood education, Audubon Commission, City Park Improvement): about $16.35 million, which the presentation describes as going to purposes outside the administration

The first two groups together make up the "$20 million-plus" general fund impact. All four total about $42.25 million, on top of about $255.1 million those millages raise now. Restricted millages can only be spent on their dedicated purpose. If the Council rolled forward only NORD's millage, for example, that money could only go to NORD.

What it would cost a homeowner. Asked by Councilmember Harris, Giarrusso said that for a $100,000 East Bank home with a homestead exemption, rolling forward all proposed millages would add $29.55 a year, about $2.46 a month.

Council questions

Each councilmember questioned the CAO in turn. The highlights, in speaking order:

Council President JP Morrell asked why the Louisiana SPCA saw no reduction among outside agencies, given the Council's outstanding transparency questions to the organization. Giarrusso said those questions remain unanswered and the administration held off on any cut until it receives the information. Morrell said government grew by more than 400 positions between 2016 and 2024 without a matching improvement in services. He tied the unbudgeted costs to a charter amendment on the November ballot that would require the Mayor and Council to show the public where money will come from when an unbudgeted obligation surfaces mid-year. He also cited the short-term rental fund, which he said showed $10 million on paper while the bank held a fraction of that.

Councilmember Jason Hughes (District E) described constituent complaints about Parks and Parkways: grass clippings left in streets and drains, a tree maintenance backlog, and a case bounced between Parks and Parkways and Audubon. "If they're getting a level of excuses and poor quality of services, what they're currently paying, what's the incentive to pay more?" he asked. Giarrusso said he has asked staff to consolidate grass-cutting responsibilities across departments and expects a fuller answer next month. Hughes requested the list of the 152 positions proposed for elimination, pledged to fight a proposed $30,000 reduction for Fort Pike, and asked for the city's median household income. Staff reported about $56,631 from Census data.

Councilmember Lesli Harris (District B) asked when current furloughs will end. Giarrusso said it depends on October collections and new revenue, and that he is mindful of the holidays. He confirmed a hiring freeze continues in 2027, with exceptions for NOPD recruits and backfilling essential positions. Harris raised the proposed cut to the low-barrier homeless shelter, listed at $5 million in the presentation, saying its closure would put about 200 people on the street. Giarrusso cited about $2.5 million in state funding tied up in litigation. Harris also questioned cuts to Mardi Gras post-parade cleanup ($1.75 million in the presentation), and asked the administration to publish the millage impact chart by home value and property type so residents can see what a roll forward would cost them. Giarrusso agreed.

Councilmember Aimee McCarron (District A) asked that the Department of Public Works budget hearing show both general fund and bond-funded operating and personnel costs, since some of the department's apparent cut reflects a shift to bond funding. She said she will hold two District A town halls in late October.

Vice President Matthew Willard (At-Large) said a roll forward is the least palatable option to him and asked whether any analysis exists on what a parcel fee could raise from properties that currently pay nothing. Giarrusso referred the question to Intergovernmental Relations. Willard noted that a roll forward raises tax bills even for homeowners with an assessment freeze, because the freeze locks the assessed value, not the millage. Asked how the city will finish 2026, Giarrusso said about $70 million to $76 million of a roughly $110 million cash management need has been received, mostly through reimbursements, and property tax collections are between 96 and 97 percent.

Councilmember Eugene Green (District D) asked why the Council declined to roll forward millages in 2024. Giarrusso cited the recovery from COVID and the appearance, on paper, that the city had ample money. Green said the Council had been "given misinformation" about the fund balance. Giarrusso said the Council and prior administration had expected about $133 million in fund balance, and found only about $35 million to $37 million in the rainy day fund at the end of 2025. Green asked about zero funding for the Clerk of Criminal District Court, whose $5.6 million general fund allocation drops to nothing in the proposal. Giarrusso said state law has consolidated the clerk's offices, and the single clerk should absorb those costs as in other parishes. On the Sheriff's office, Green described about $60 million a year in local costs to house people held on state charges. Giarrusso said the city did not cut the Sheriff's budget because of the federal consent decree. The proposal raises the Sheriff's general fund allocation 13 percent, from $51.7 million to $58.5 million. Giarrusso added that the jail's medical contract exceeds $20 million and its population exceeds the 1,250-bed cap. Both men clarified this was not a call for mass release, but for faster case processing and timely transfer of state prisoners to the Department of Corrections.

Councilmember Freddie King III (District C) cautioned that the proposed $500,000 cut to the public defender's allocation could slow cases and push jail population higher. He asked about $1.7 million in youth and juvenile justice reductions, including YouthForce NOLA and the Juvenile Justice Intervention Center. Giarrusso said JJIC proposed its own reductions, and the Mayor's youth programs are funded separately under the miscellaneous category. King said that without new revenue, cuts will reach sanitation, security, tree trimming, and grass cutting.

Morrell's closing remarks. Morrell said that even under a best-case scenario with every proposed revenue measure, new revenue would total about $35 million, leaving roughly $65 million in cuts. "There is no money tree," he said. He told the public the Council can move the administration's cuts around, but cannot eliminate the pain, only shift it. On a parcel fee for nonprofits, he said legal and procedural hurdles make it unlikely before 2028, and that the Council will not "double tax" residents who already pay.

There is no money tree.

Public comment

Morrell noted that the Council's rules do not require public comment on non-voting items, but said the Council was taking it because of the importance of transparency in the budget. Each speaker had two minutes.

• Russell Kelly asked about the status of a $21.5 million Civics project management contract and how much CDM Smith is paid to manage contracted project managers. He also asked why the CAO's office posted a job opening during a hiring freeze. No answer was given during the meeting.
• Nellie Katzen, who said she served on the Mayor's transition committee for the Committee for a Better New Orleans, thanked the administration for the level of detail. She said the budget reflects a narrow definition of essential services, and cited a 90 percent general fund cut to the Office of Community Development and a 51 percent cut to the Health Department. Both figures match the administration's presentation, which shows Community Development's general fund budget falling from $1.3 million to about $130,000 and the Health Department's from $12.0 million to $5.9 million. Measured across all funding sources, the budget book shows a smaller decline for the Department of Health, about 5.3 percent, because grant and other non-general-fund money rises by about $5.7 million.
• Morgan Clevenger said residents still carry unrecovered losses from the 2019 reassessment, COVID, and Hurricane Ida, and urged the Council to keep residents "front and center."
• Bridget Neal spoke about pension and retiree health care obligations. Morrell corrected one statement afterward, saying overtime and details do not count toward pension calculations, which are based on base salary. He said terminal leave policy remains a problem and that he wants to change it for new hires.
• Arianna Newman, founder of 1735 NOLA, proposed using Section 150-77 of the city code to sell adjudicated properties to Hurricane Katrina survivors and heirs.

The meeting adjourned at 12:21 p.m. Morrell moved to adjourn and Harris seconded; the motion passed 5-0, with Willard and McCarron absent for the vote. A joint committee meeting on utilities followed.

What comes next

The Council now holds ten budget hearings with city departments and outside agencies. Giarrusso said the administration aims to submit mid-year 2026 budget adjustments within the next one or two Council meetings so 2026 and 2027 figures can be compared directly. Final adoption is expected in late November or early December.

Evans Cutchmore Press will cover each hearing in this series.

How to follow this

• Who decides: The New Orleans City Council, through its Budget Committee hearings and a final vote on the 2027 budget ordinances.
• Location: City Council Chambers, City Hall, 1300 Perdido Street.
• Budget book:

• Your councilmember: District A, Aimee McCarron; District B, Lesli Harris; District C, Freddie King III; District D, Eugene Green; District E, Jason Hughes; At-Large, JP Morrell and Matthew Willard.
• 2027 Budget Hearing Schedule

All hearings are scheduled for 9:30 a.m. Attend in person in Council Chambers or watch on the NOLA City Council YouTube page. Schedule is subject to change.

September 29

• Proposed Millage Rates
• Department of Finance
• CAO’s Office
• Millage Presentation
• Civil Service

September 30

• Coroner’s Office
• NOPD
• NOFD
• JJIC
• OPCD

October 5

• Capital Budget
• Five-Year Capital Plan
• CAO – Office of Capital Projects Administration
• Department of Property Management
• Department of Public Works

October 7

• Mayor’s Office
• Law Department
• New Orleans Aviation Board

October 8

• Economic Development
• New Orleans Building Corporation
• New Orleans Redevelopment Authority
• Health & Human Services

October 19

• Department of Safety and Permits
• Department of Code Enforcement
• Department of Sanitation
• City Planning Commission
• HDLC
• Vieux Carré Commission
• Parks and Parkways
• NORD + Parks Millage

October 21

• Criminal District Court
• Juvenile Court
• Orleans Parish District Attorney
• Orleans Parish Sheriff’s Office
• Orleans Parish Public Defenders

October 22

• Municipal & Traffic Court
• Orleans Parish Clerk of Court
• Office of Inspector General
• Office of Independent Police Monitor
• French Market Corporation
• Regional Transit Authority
• Algiers Development District
• Bio District
• New Orleans Public Library

October 28

• Total Community Action
• New Orleans Council on Aging
• Louisiana SPCA
• Arts Council of New Orleans
• N.O. Tourism & Culture Fund
• N.O. Municipal Yacht Harbor

October 29

• Extra day, if needed

Kim M. Braud is the Founder & Editor of Evans Cutchmore Press, an independent newsroom covering Louisiana and the Gulf South. Her reporting focuses on government accountability, infrastructure, business, culture, and the public policies that shape communities.

© 2026 Evans Cutchmore Press. All rights reserved.