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State Audit Puts New Orleans Budget Gap at $160 Million as Hearings Intensify

The finding forces the City Council to reconcile disputed figures ahead of the Dec. 1 budget vote.

Overview

  • Louisiana Legislative Auditor Michael Waguespack reported a projected $160 million deficit as department budget presentations continued at City Hall.
  • He flagged limited general fund reserves at about $47 million, with most dollars restricted and little flexible cash for contingencies.
  • The auditor’s figure exceeds earlier estimates of a $60 million to $100 million shortfall that officials had been using to frame the 2026 plan.
  • Mayor LaToya Cantrell’s draft $1.59 billion budget relies on deep cuts, a hiring freeze and targeted revenue measures, with warnings of payroll delays, slower vendor payments and service interruptions.
  • Administration officials cite personnel costs and event-related overtime, plus weaker local and federal revenues, as key drivers, while proposals include a $37 million cut to Public Works, a $12 million reduction for the Sheriff’s Office and a $14 million boost for NOPD.