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New Orleans Payroll at Risk as City Warns of Worsening Cash Crunch

A special council session will probe the CAO's warning of worsening cash flow.

Overview

  • Chief Administrative Officer Joe Threat told Council Budget Chair Joe Giarrusso and Mayor-elect Helena Moreno that payroll may not be met for the rest of 2025.
  • An emergency City Council meeting is set for 3 p.m. Wednesday to seek public explanations for the late disclosure of the cash-flow problem.
  • The state legislative auditor estimates a roughly $160 million deficit and says only about $8 million is available from a $46 million reserve because most funds are restricted.
  • Overtime for first responders and event-related expenses were identified by the auditor as major drivers of overspending.
  • City departments face steep reductions and possible new fees or taxes as officials race toward the Dec. 1 budget deadline and a January mayoral transition.