Mayor Presents 2021 Operating Budget To New Orleans City Council

From the City of New Orleans:

October 26, 2020

Mayor LaToya Cantrell today presented the 2021 City of New Orleans Operating Budget to the City Council.

"The 2021 Budget reflects the values of the City of New Orleans, and the responsibilities that come with those values. This 2021 budget also is intentional, comprehensive and fiscally responsible while still allowing our departments to continue to serve our residents at a high level. We have worked diligently to leave no stone unturned in preparing a budget that reflects the needs of our residents while also preparing the City for the uncertainties the future will bring. This budget also asks the voters for a rededication of 5 millages that will expire in 2021 that will give the City the flexibility it needs to ensure these revenues can continue to be spent as needs change in the future," said Mayor Cantrell. "We are at an extremely consequential time, but we've been through incredible challenges before, we know how to face them and come out stronger on the other side. Working with our City Council, we're going to make the smart decisions to keep pushing forward."

"We are being conservatively optimistic for the 2021 budget year, however, as economic conditions change, we will adjust our financial projections accordingly, and have plans in place if this economic recovery goes left or right. Given our current fiscal situation, we find ourselves having to make the difficult and unappealing decision to request additional furlough days in 2021 – this request is not a reflection on our hard-working and dedicated employees but is a last resort to ensure we can balance the 2021 budget without the immediate need for lay-offs. As we look forward to 2021, one of the most important factors to consider is that the City will not carry a structural deficit into 2021 – this is critical to maintaining the financial health of the City, both now and in the years to come as the City rebounds," said Chief Administrative Officer Gilbert Montaño.

[READ: 2021 City of New Orleans Operating Budget]

Mayor Cantrell noted that the budget was prepared while keeping in mind that New Orleans was disproportionately impacted by the COVID-19 pandemic on the front end and suffered again when the City’s CARES Act funding was diverted and diluted at the state level. And so, for the 2021 fiscal year, the City is facing a budget shortfall of more than $100 million. So as the City considered the budget proposal, it was important to acknowledge the challenges that the City faced before the pandemic. When the first COVID cases emerged in March, the City already was under two emergency declarations— and even now the City is continuing the work of recovering from the tragedy at Hard Rock.

As the City continues to respond to the COVID-19 pandemic, Mayor Cantrell has worked with the senior leadership team to work keep residents working and to keep government moving. The City has streamlined operations to avoid disruption, but there is no question that the challenges ahead remain significant.

This press release was produced by the City of New Orleans. The views expressed are the author's own.