Budget hearings in New Orleans started Tuesday amid a financial crisis. The hearing will give Mayor LaToya Cantrell’s administration the opportunity to make its case for spending priorities in 2026. The city’s new budget season is kicking off under serious financial strain, with leaders facing a multimillion-dollar deficit and looking for ways to rein in spending.”We’re trying to find efficiencies everywhere that we can,” said City Council Vice President Helena Moreno.During the first budget hearing Tuesday, several departments gave presentations, hoping to get their piece of the pie as city leaders questioned if things like contracts, consultants, and overtime added to the strain.”Overtime really has blown up obviously with our public safety agencies but also within city departments,” said Moreno. According to city leaders, the estimated shortfall could be anywhere from $60 to $100 million, and an upcoming state audit could show just how deep the deficit goes.”I think the answer is going to be there has been a lot of spending,” said New Orleans City Councilman Joe Giarrusso.Council members said the goal is to run a leaner government without compromising critical services.”If you’re saying it’s a 30 percent reduction, that’s definitely going to impact operations,” said New Orleans City Councilwoman Lesli Harris.As they await to hear from other departments, they’re watching closely as there is no room for error.”We can’t afford any little wobbles or mistakes,” said Moreno. Department heads across City Hall and outside agencies will present their plans to the City Council over the next several weeks. Last month, the City Council requested that a state legislative auditor examine New Orleans’ finances. A final budget must be approved by Dec. 1.
Budget hearings in New Orleans started Tuesday amid a financial crisis.
The hearing will give Mayor LaToya Cantrell’s administration the opportunity to make its case for spending priorities in 2026.
The city’s new budget season is kicking off under serious financial strain, with leaders facing a multimillion-dollar deficit and looking for ways to rein in spending.
“We’re trying to find efficiencies everywhere that we can,” said City Council Vice President Helena Moreno.
During the first budget hearing Tuesday, several departments gave presentations, hoping to get their piece of the pie as city leaders questioned if things like contracts, consultants, and overtime added to the strain.
“Overtime really has blown up obviously with our public safety agencies but also within city departments,” said Moreno.
According to city leaders, the estimated shortfall could be anywhere from $60 to $100 million, and an upcoming state audit could show just how deep the deficit goes.
“I think the answer is going to be there has been a lot of spending,” said New Orleans City Councilman Joe Giarrusso.
Council members said the goal is to run a leaner government without compromising critical services.
“If you’re saying it’s a 30 percent reduction, that’s definitely going to impact operations,” said New Orleans City Councilwoman Lesli Harris.
As they await to hear from other departments, they’re watching closely as there is no room for error.
“We can’t afford any little wobbles or mistakes,” said Moreno.
Department heads across City Hall and outside agencies will present their plans to the City Council over the next several weeks.
Last month, the City Council requested that a state legislative auditor examine New Orleans’ finances.
A final budget must be approved by Dec. 1.