Mayor Helena Moreno Proposes $77 Million in New Orleans Budget Cuts

New Orleans Mayor Helena Moreno presented a 2027 budget proposal to the City Council on September 22 designed to address a nearly $100 million deficit. The plan seeks to close the gap through approximately $77 million in spending cuts and $22 million in one-time funds. Proposed reductions include eliminating 152 full-time positions, closing the city's only low-barrier homeless shelter, and reducing funding for the New Orleans Police Department and New Orleans Fire Department.

Other slated cuts include the elimination of the Workforce Development agency's $500,000 budget, a summer youth jobs program, home visits for new mothers, and a $1.75 million reduction in Carnival parade cleanup. To demonstrate fiscal discipline, Moreno and Chief Administrative Officer Joe Giarrusso both accepted 10% salary cuts. The administration noted that some cuts could be mitigated if the City Council approves a millage roll forward to increase property taxes, which could generate between $20 million and $42 million.

The proposal has faced pushback from community advocates and council members. Jason Hughes questioned the incentive for residents to pay higher taxes while city services remain poor. The Committee for a Better New Orleans specifically opposed cuts to internship training and homelessness funding. The City Council will hold hearings over the next two months before a final vote expected in November.