2027 Proposed Budget Hearings – Day 1: New Orleans City Council (September 29, 2026)

The New Orleans City Council convened Day 1 of its 2027 Proposed Budget Hearings on Tuesday, September 29, 2026, beginning at 9:30 a.m. The administration presented the proposed 2027 millage rates and budgets for the Department of Finance, the Chief Administrative Office (Budget, IT, Innovation/Performance, HR, and Sustainability), an update on the Early Childhood Education millage (Year 4), and the Civil Service Department. The session opened with a detailed discussion of a potential millage roll-forward — the first since 2015 — as a partial offset to a projected $77 million general fund gap. No ordinances were voted on; the session was informational and the first of a multi-day hearing schedule.

Public Comments & Testimony

• Larry J. Morgan (8312 Orianda Street) opposed any further tax increases, stating that residents' salaries cannot accommodate higher taxes while city services decline. He directly criticized CAO Joe, saying "Joe, you're a joke," and alleged the council gave itself a raise after campaigning on lowering costs.
• A speaker from Apple Street (Mr. Adun) warned that regressive impacts extend beyond taxes to fines, parking tickets, and code enforcement, which disproportionately hit poor communities, particularly Black communities in New Orleans East. He cited Superintendent Ann Kirkpatrick's earlier statement against penalizing citizens with civil penalties during the austerity crisis.

Discussion Items

Tax Levy Ordinance – Proposed Millage Rates (Ords 35582 & 35583)

• CAO Joe presented the proposed millage roll-forward scenarios: general alimony/unrestricted general fund (1.82 mills, up to $10 million in additional revenue); city-dedicated uses including police, fire, parks and parkways, and NOR recreation (1.911 mills, $11.388 million); a police platoon millage ($4.3 million); and library, early childhood education, Audubon, and City Park millages (2.93 mills combined, ~$16.35 million) — a grand total of about $42 million.
• For a homestead-exempt home, a full roll-forward would cost: $103.94 annually ($8.66/month) for a $200,000 home; $141.13 annually ($11.76/month) for a $250,000 home; $178.33 annually ($14.86/month) for a $300,000 home; and $513 annually for a $750,000 home.
• Millages not being rolled forward include the Board of Liquidation (14.5 mills), the Sewerage & Water Board drainage millages, the school board (which rolled forward years ago), the Orleans law enforcement district (sheriff), and various district/levy boards. The last full roll-forward of city-benefiting millages was 2015.
• Councilmember Willard cautioned against framing increases in monthly terms because taxes are due annually and unpaid balances accrue interest penalties. He also noted that homeowners with special assessment freezes will still pay more when the millage rate rises.
• Councilmember King urged better public education, citing widespread misinformation and his own barbershop conversations where residents did not know the actual numbers. He asked the administration for an explicit position on the roll-forward; CAO Joe described the budget as a "menu of options" rather than taking a yes/no position and said an interactive web page with a millage calculator would be posted this week.
• Councilmember Green listed cost drivers since 2015: ~$30 million in increased health care costs, $18 million in previously unbudgeted debt service, ~$5 million in retention and terminal leave pay, $26 million in across-the-board pay increases, ~$98 million for outside agencies (about $75 million of it for Orleans Justice Center operations and jail health care), the loss of ARPA funds, and a $138 million surplus (18.1–18.4% of the general fund, above the GFOA 16% benchmark).
• Councilmember Morrell described a proposed arrangement in which Audubon would take over maintenance of Crescent Park in exchange for its millage roll-forward, and argued that property taxes are less regressive than sales taxes because they rise with property value.
• The administration confirmed that even a full $42 million roll-forward would not close the gap: the starting deficit is $99 million, roughly $21.5 million in one-time savings reduces it to about $77 million in cuts, and CAO-estimated proposed cuts of ~$16 million would reduce — but not eliminate — the remaining gap. Councilmember Morrell said the council, not the administration, would ultimately decide which cuts are restored if millages are rolled forward.

Department of Finance

• Finance leadership presented a proposed 2027 budget of $38.7 million versus $19.3 million adopted in 2026. The increase is driven mainly by $18.2 million in principal and $2.3 million in interest — debt service moved into the general fund. Excluding debt service, operations are about $1 million below 2026.
• Accounting: FTEs reduced from 22 to 20 (a 9% reduction); ADP payroll software funded at $3 million (including a $250,000 reduction and $50,000 in new investments). The FY2025 audit was completed on time, and the LLA approved it in one business day — a first.
• Purchasing: 6.5 FTEs (down from 9.5); hosted the annual procurement fair at one-third of its allowed budget. A $10,000 hearing-officer line for responsible-contracting determinations was removed, with the department flagging it as a priority to restore.
• Revenue: 46 employees; the sales-tax audit team was doubled; on pace for ~200 audits and $3.3 million in sales-tax collections as of August 2026; audit return on investment is 4.6:1. A tax amnesty runs October 1–December 31, 2026, waiving 100% of penalties and 50% of interest. Only 2–5% of registered businesses are audited annually; penalties are 5% per month (capped at 25%) plus uncapped 1.25% interest.
• Treasury: 20 FTEs (down 3); zero non-general fund budget proposed; tax sales for adjudicated properties are paused pending a new vendor expected within six months. Councilmember Harris pushed for a faster timeline, noting unrecognized revenue.
• Retirement: 7.5 FTEs; $621 million investment portfolio; ~$4.3 million paid monthly to retirees; about 70% of the office is eligible to retire in January. A one-time COLA continues in February, but a permanent 1% COLA (costing north of $20 million) is not in the 2027 budget and will be studied for 2028.
• Councilmember Morrell praised moving debt service into the general fund as the honest approach and encouraged all departments to budget for terminal leave. Councilmember McCarron requested org charts for every department and noted that FTE reductions are vacant positions; she also asked the city to maximize use of the short-term rental funding stream.
• Councilmember Harris noted discrepancies between presentation slides and the budget book (e.g., Finance director's office listed as 5 FTEs in the presentation but 6 in the budget book; the accurate number is 6) and said such variances should be watched throughout the hearings.

Chief Administrative Office

• Office of Budget and Management (Assistant CAO Brandy DeLarge): Proposed general fund budget of $2.8 million, up $1.25 million, primarily to establish the new Contracts Management Office (about 10 staff); citywide postage moved into the general fund. Non-general fund drops from $350,000 to $121,000.
• Office of Information and Technology (Chief Innovation Officer Jonathan Wisby): The 2027 budget is $3 million above the 2026 adopted level but still $1 million below 2025. Four contract staff convert to full-time (personnel from 40 to 42 FTEs, with two budgeted positions actually lost); department furloughs are eliminated. Efficiencies include ending a cyber-command lease, licensing audits, and removing low-use public Wi-Fi (Duncan Plaza; Lafayette Square ~1,000 users/month). Cybersecurity risk score dropped ~85% following a CISA review. A new 311 module launches around Q2 2027 ($500–600K capital implementation; ~$100K annual maintenance; past-ticket data import poses challenges). The Lama permitting-system replacement RFP is targeted for November, and a website accessibility deadline is April 2027.
• Councilmember Morrell pressed for consolidating or eliminating OPSE through centralized police detail scheduling and a quartermaster model, arguing it would cut duplication and generate department revenue without tax increases. Councilmember Green questioned the city's investment in OPCD, which he noted is a state agency.
• Office of Service and Innovation / Performance and Accountability (Chief Performance Officer Abby V): Budget rises from $563,000 to $1.2 million, mostly correcting 2026 under-budgeting of existing FTEs (7 general fund + 3 grant-funded); other operating funding is eliminated. The office led 2025 spending controls, quarterly spending reviews, and supports the new contracts office and jail health care contract.
• Office of Employee & Labor Relations / HR (Assistant CAO Christina Hamilton): Proposed general fund budget of ~$3.9 million (+$159,000); personnel up $364,000 (budgeting for actuals and no furloughs); other operating down 37.2%. Health plan costs rose sharply (2025 gross medical claims $53.5M vs $44M in 2024; pharmacy $26.3M vs $16.8M; net employer cost $62.3M). The city is adopting ~$11.95 million in savings ($3.9M plan design, $2.7M pharmacy, $3.08M eligibility/coordination, $1.64M site of care, $647K employee contributions). A Select Ochsner narrow network was not implemented. New for 2027: a $1,000-deductible PPO and a $3,000-deductible HSA-compatible HDHP; family out-of-pocket max drops from $13,500 to $12,000; employee+spouse and employee+family dental premiums rise $20/month. Pre-65 retirees move to a separate self-funded plan with the deductible rising from $750 to $1,250; retiree per-member cost rose 33% ($1,620 to $2,154). Open enrollment runs October 1–31, 2026. Councilmember Willard asked whether employees are paying more for less; HR responded "Absolutely not" and noted the city still bears most of the cost.
• Office of Sustainability (Chief Sustainability Officer Meagan Williams): Proposed budget is ~$177,000, mostly operating; two staff would be split-funded ($22,000 personnel). The office eliminated funding for Recycled At and Christmas tree recycling (~$20,000), though the CAO hopes to restore it with other funds. Grant-funded work continues: Gordon Plaza solar farm RFQ imminent; Recovery One consent-decree maintenance; Gentilly Resilience District ($141M HUD; Willie Hall site has ~5 million gallons of underground stormwater storage); 41-building energy assessments and 14-building solar PV under the CPRG grant; Lincoln Beach phase one; and a Climate Action Plan update (C40 requirement). Green-infrastructure maintenance uses the 5135 fund (~$300,000); an adopt-a-stormwater-lot program is planned. Councilmember Green asked about private-sector help for bioswale maintenance and highlighted the new Tremé green infrastructure project; Councilmember Harris asked for a cost-benefit analysis of Recycled At versus landfill hauling and flagged community concerns about AL Davis Park's grass, which is being replaced with sod.

Early Childhood Education Millage Presentation (Year 4)

• The 2022 early childhood millage is in its fourth full year. It funds about 1,000 infant/toddler seats, matched 1:1 by the state ($21.5 million) for another 800 children, for 1,800 total served across 40 centers — over 60% of publicly funded seats in the network.
• New Orleans serves 31% of low-income infants/toddlers versus a 12% statewide average. Kindergarten-readiness scores exceed the statewide average in every demographic group. 94% of families said the program improved their ability to work or attend school; 89% would recommend their site; 77% of children return year to year; 97% of directors rated the program positively.
• Wraparound services include vision, developmental, and hearing screenings, with over a quarter of screened children enrolled in care coordination, and about 1,000 two-generation mental health consultation visits.
• NORA has received $4.6 million since 2022 for child care facilities; ~2,000 hours of technical assistance went to ~130 centers; three centers have opened (Firehouse and Wilcox Academy in District B; Shiloh Gardens in District E).
• The current millage is 4.39 mills (~$21.5 million/year). Rolling forward to 5 mills would add ~$3.4 million and roughly 100–200 more seats, but demand is far larger: more than 5,000 eligible children and 50+ centers cannot be served due to funding limits. Average teacher wage is $11/hour; retention bonuses have helped — 90% of surveyed teachers said the supports reduced stress, and 83% said they would stay in the field. Seventeen communities across the state now compete for the state match.

Civil Service

• Director Amy Trapnier presented a standstill 2027 budget: personnel ~$2.4 million (+$26,000, due to fringe costs) and other operating fixed at $509,364. Two vacant positions are eliminated, one replaced by a new learning management system. About 92% of other operating funds cover software (63%) and the disciplinary appeals process (29%, mostly hearing examiners and court reporters).
• Public safety promotional testing remains unfunded for 2027; the commission has extended existing eligible lists into 2027.
• Goals include rule modernization, per-vacancy job postings, weekly recertification of eligible lists, electronic onboarding, addressing critical vacancies via hiring-rate and classification changes, and a train-the-trainer session for the employee growth and development program in early 2027.

Key Outcomes

• No votes were taken; the session was Day 1 of the 2027 budget hearings. Day 2 (public safety) was scheduled for the following day, with Councilmember Morrell signaling he will ask NOPD to identify offsetting cuts for any requested increases.
• The administration committed to posting an interactive millage-impact web page/calculator this week, allowing residents to toggle scenarios by home value and roll-forward option.
• Councilmembers directed departments to provide org charts (filled/vacant) as part of budget materials.
• The administration was asked to produce a revised cut list if partial or full millage roll-forwards are adopted; CAO Joe said the cut list would be a "continued dialogue" with the council.
• Finance will continue discussions on accelerating the new tax-sale vendor timeline; the revenue amnesty program begins October 1, 2026; HR open enrollment begins October 1, 2026.
• Councilmember Harris requested a Recycled At cost-benefit analysis (versus landfill hauling) before the end of budget season; Councilmember Morrell flagged potential near-term work on OPSE consolidation and centralized police detail management.