New Orleans’ city coffers dangerously low, state auditor tells city council

NEW ORLEANS (WVUE) - Three years of deficit spending have left New Orleans’ city coffers dangerously low, the Louisiana Legislative Auditor told the city council Wednesday (Oct. 15).

“You’re going to deficit-spend about $160 million of that fund balance, and end up the year around $46 million in a positive fund balance,” state auditor Mike Waguespack warned the council.

Waguespack told council members that’s about $100 million less than recommended, especially for a storm-prone city like New Orleans.

The audit report prompted council members to criticize members of Mayor LaToya Cantrell’s finance department.

City finance director Romy Samuel said the council should have anticipated the bleak financial picture, knowing the city’s public safety agencies had huge increases in overtime spending necessitated by the Jan. 1 Bourbon Street terror attack, the Sugar Bowl, Super Bowl LIX and an unexpected January snowstorm.

“We provide a 100-page report, by council request, that you all don’t read,” Samuel told the council.

Council budget chair Joe Giarrusso shot back, “No, that is false. That’s not true. Let me tell you what happens: We get the report after the fact.”

The budget situation isn’t going to improve anytime soon. With a Halloween parade, November’s Bayou Classic football weekend, holiday events, professional sports and concerts coming to the city, overtime spending is expected to cost another $10 million by the end of the years. An even larger deficit is projected for next year.

City council members are considering a new ordinance that would require regular council budget updates, so they can more closely monitor city spending in the future.

City departments and agencies, meanwhile, are bracing for severe budget cuts. Hearings began this week, with Orleans Parish Coroner Dr. Dwight McKenna lamenting his office’s suggested cut on Wednesday.

“I don’t know how we can possibly operate the Coroner’s office with a $1 million reduction, from $4.5 to $3.5 million,” McKenna said.

McKenna warned his office would not be able to hire key positions such as death investigators and transport drivers. The city budget hearings continue Thursday.

The Cantrell administration issued a statement later Wednesday saying it “continues to provide real-time financial updates and work collaboratively” with the council to develop the 2026 budget, and noted “the importance of maintaining fiscal discipline.”

“Steps have already been taken to control spending, strengthen collections and identify new revenues,” the unsigned statement continued. “While budget reductions and management efficiencies are part of the solution, new revenue will be critical to sustaining vital services and ensuring long-term financial stability.”

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