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New Orleans Council Seeks State Audit to Clarify City Deficit

Officials disagree on whether the gap tops $100 million or reflects a smaller fund-balance shortfall, and the legislative auditor plans to begin reviewing records next week.

Overview

  • Councilmembers Helena Moreno, JP Morell and Joe Giarrusso drafted a resolution asking Legislative Auditor Mike Waguespack to determine the existence and size of any deficit and offer recommendations.
  • Waguespack said he was asked to help, will start compiling records next week, and could produce findings soon after.
  • Council analysts and the Bureau of Governmental Research cite a 2025 budget gap exceeding $100 million, driven by about $73 million in personnel and overtime costs and roughly $30 million in lost revenue.
  • The Cantrell administration has not given a single budget-deficit figure and instead reports a fund-balance shortfall near $65 million, with officials offering differing numbers this week.
  • Short-term controls include a hiring and travel freeze, curtailing contracts starting Sept. 30 and shifting some operating costs to capital, while a committee backed up to $91 million in water bonds and stronger sales-tax enforcement before any rate hike.