Summary of Proceedings
2027 Proposed Budget Hearings – Day 8: New Orleans Agency Budget Reviews (Oct. 22, 2026)
On Thursday, Oct. 22, 2026, the New Orleans City Council held Day 8 of its 2027 proposed budget hearings, beginning at 9:00 a.m. (the transcript begins at 9:31 a.m.) and recessing around 1:00 p.m. Seven agencies presented: the Office of Inspector General & Ethics Review Board, Office of the Independent Police Monitor, French Market Corporation, Regional Transit Authority, Algiers Development District, Bio District, and New Orleans Public Library. The hearing was informational; no formal votes were taken.
Public Comments & Testimony
- During French Market Corporation testimony, a public speaker criticized FMC executive director Casey Gidry, saying the leasing process was not fair, that Corporate Realty ignored roughly 20–30 requests for process information, and that FMC was trying to remove OMG, a 12-year tenant. A second speaker, a market vendor since 2018, said Corporate Realty does not care about local vendors, criticized market security, and questioned the FMC holding $13 million in cash while raising rents.
- During Regional Transit Authority testimony, a public speaker named Owen, a 50-year New Orleans resident, expressed strong support for RTA and transit investment. He cited an estimated population loss of 30,000 since the last census, including at least 10,000 young adults, and argued that transit reduces the costs of car ownership.
- During New Orleans Public Library testimony, Shannon Satanovich, executive director of the Library Foundation of New Orleans, expressed full support for the library and the new facilities administrator, but urged a long-term funding plan instead of repeated emergency repairs.
Discussion Items
Office of Inspector General & Ethics Review Board
- OIG leadership said the office has identified approximately $196 million in city funds spent in fraudulent and/or wasteful ways since inception; last year it identified the need for increased oversight of about $122 million in taxpayer-allocated funds, including the Sheriff's Office and Orleans Parish Communications District. This year, OIG said it identified about $16 million in potential economic loss prevented, a 369% return on the city's investment.
- OIG reported 25 employees, a fixed budget declining by about $200,000, and past surplus returns of $500,000 to $2.5 million. A councilmember flagged a discrepancy between the budget book (2026 adopted $3.9 million; 2027 proposed $4.2 million) and OIG's presentation ($4.4 million for both); budget staff said some agencies receive a percentage of general fund revenue and the 2026 amended budget changed, while OIG said it used numbers given to it.
- OIG cited a fleet review showing about $500,000 in purchased software was never installed on about 60% of city vehicles, 64% of which were police vehicles, and a NORD report finding background checks were not consistently conducted. OIG also discussed risk assessment, training, and legal/travel budgets. The Ethics Review Board was listed on the agenda; no separate testimony appears in the transcript.
Office of the Independent Police Monitor
- Independent Police Monitor Stella Cement said the OIPM receives 0.16% of the general fund by statute. In 2026 it expanded mediation programs, received over 40 post-investigation mediation referrals, completed a virtual public archive, and neared completion of a public-facing officer force/discipline database. Due to budget constraints, it ended the Monitor's Mic radio show and postponed a new mediator cohort to 2027.
- The OIPM will not hire in 2027, carries a $100,000 wage reserve, and hopes to replace its general counsel contractor. 2027 goals include case reviews, audits of public integrity bureau classifications and case refusals/evidence exclusion, mediator recruitment and training, and expansion of mediation between NOPD employees and supervisors.
French Market Corporation
- FMC executive director Casey Gidry reviewed 2026 goals: completing the Building E rehabilitation (about $7 million from reserves, with move-in in August), advancing the Upper Pontalba renovation using $8 million in city bond funds with a total project cost of about $12 million, and filling vacancies with new leases. FMC expects to reoccupy Upper Pontalba residential space around mid-2027 and estimated about $2.5 million in historic tax credits that would be sold and returned to the city.
- Gidry said FMC had not adjusted rents at least since 2015, adopted a market-rate baseline in May 2024, and is using a strategic leasing process with open LOI submissions. She said FMC's budget includes an $82,000 decrease in grounds patrol based on actuals, not cuts, and a $1.1 million depreciation correction. FMC reported about $13 million cash on hand as of Q2, with no current bonds but capacity to issue them; council asked for details on reserves and possible return of funds.
- On Crescent Park, Gidry said FMC relinquished it after a city-Audubon agreement, with FMC not involved in quantifying expenses. Council also asked about professional services, legal costs, and possible shared audit services across public benefit corporations.
Regional Transit Authority
- Interim CEO Ronald Beates and CFO Giselle Banks presented a preliminary 2027 budget, noting formal board review and adoption are scheduled next month. RTA has 881 FTEs, about 525 unionized ATU operators/para-transit/streetcar staff, and an 8% vacancy rate with about 807 staffed.
- 2027 goals include implementing the LGR service improvement plan and New Orleans East plan, completing BRT engineering, preliminary design of the downtown transit center, fare technology procurement (TAP/open payments), ADA-compliant streetcar stops on St. Charles, and ordering 37 new buses, 25 of them CNG low-emission.
- Revenues are projected at about $201 million for 2027, down from $225 million approved for 2026, largely because one-time capital grants are being spent down. The operating budget is essentially flat with no additional FTEs; local capital match drops from about $14 million to $10 million, and FTA formula funds are about $23.3 million, with 93% of that allocation used for preventative maintenance. No capital funding comes from the city's capital budget. Council also discussed the youth pass program, whose funding runs out this year, and RTA said a reduced 40-cent youth fare remains and zero-fare service could be possible in the future as fare technology reduces costs.
- Council asked about the CEO search; the board is scheduled to interview three finalists and vote publicly on Oct. 27.
Algiers Development District
- Executive Director Kathy Lynn Honiker and Sean Bruno presented the Algiers Development District, which manages Federal City, a former Navy base of about 200 acres. Recent projects include the Riverside Retreat 55+ community, the Lofts at Federal City (about 60 units in the historic Brown Taylor building), military housing, a pool turned over to NORD, and partnerships with Delgado, Navy Federal, and the New Orleans Maritime Military Academy.
- ADD's budget revenues total about $2.4 million: roughly $1.5 million in TIF funding from city and state sources, about $900,000 in military lease payments, and interest income. It receives no city general fund revenue.
Bio District
- Bio District chair Andy Coplin, with Emily Arrata and Charlotte Parent, highlighted three transformative projects: Charity Hospital adaptive reuse, the Xavier Ochsner College of Medicine in Benson Tower (which received preliminary accreditation and could welcome students as early as 2027), and work toward an NCI-designated cancer center.
- On the NCI effort, the district noted about 180 clinical trials, 72% of adult trials at UMC, over 80 active trials, a $2 million cancer center expansion opened in August, and the Louisiana tumor registry. Local startups Beacon Bio and Informata received $1.25 million in SBIR Phase II awards, and the district supports K-12 STEM engagement and Tulane Avenue placemaking/transit improvements.
- Bio District operates with volunteer board members and contractors, with plans to hire at least one employee in 2027. It adopted an $830,000 budget for 2026, anticipates spending about $537,000, and expects about $1 million in city EDD funds and about $1.8 million in state funds for 2027.
New Orleans Public Library
- Executive Director Emily Payton reported 2026 outreach totals: 240 outreach events, 13,000 community members reached, 5,000 books given to children, and 115 field trips serving almost 3,000 young people. The Children's Resource Center reopened with about $408,000 from Capital Projects and $303,000 from the library.
- The library replaced five roofs and four HVACs in 2026 with $1.7 million in millage funds, and is working on the main library elevator/HVAC project budgeted at $8 million; bids came back about $2 million over estimate. It hired a new facilities administrator, Sam LeBlanc, but lost 20 staff and hired 8, a net decline of 12, citing low pay, cost of living, and the residency requirement.
- Payton said the library is funded by two dedicated millages, with no general fund revenue. It has 212 budgeted staff and about a $22 million budget, compared with Jefferson Parish Library's 247 staff and $29 million budget. The proposed 2027 budget is $32.2 million, including about $22 million in millage revenue and $10 million drawn from reserves for facilities projects and one-time costs. Payton noted reserves were about $18.5 million when she started but are now largely spent, encumbered, or reserved for emergencies. Future HVAC needs include Alvar and NYX at about $85,000 each, Keller at up to about $2 million, and four meeting room systems at roughly $600,000 total.
- The city archives are housed in the main library's second basement, about six inches from flooding during Hurricane Katrina, with sea levels having risen 7–8 inches since then. The library plans a facilities assessment and an archives storage feasibility study, possibly using the parking lot behind the main library.
Key Outcomes
- No formal votes were taken; the hearing was an informational budget review.
- Council asked OIG to see whether it could pull recycling-related findings into an expedited letter before the budget season ends; OIG said it would try.
- Council asked FMC to provide Upper Pontalba cost details and to review its cash/reserve position for possible return to the city; FMC agreed to follow up.
- RTA's preliminary budget will be reviewed and formally adopted by its Board of Commissioners next month; CEO finalist interviews and a public vote are scheduled for Oct. 27.
- Council members voiced support for Bio District projects, including the NCI designation effort and the Xavier Ochsner medical school, and encouraged continued work with LED on startup incentives.
- The library will continue exploring options for the main library project, a system-wide facilities assessment, and an archives storage feasibility study.
- The council recessed and said budget hearings would resume at 1:00 p.m.
Meeting Transcript
All right, uh we uh uh are at 9 31. The floor is yours. Thank you, and good morning. The New Orleans Office of Inspector General has a history of mitigating fraud, waste and abuse at unprecedented levels. Um since our inception, the OIGA has identified uh approximately 196 million dollars in city funds that were spent in a fraudulent and or wasteful manner. We are continuing and will continue to identify and mitigate fraud waste and abuse. It's important to note um that as City Council members, your support and partnerships are central to our work to eradicate fraud waste and abuse. Last year, for example, the OIG identified the increased need for oversight of about 122 million dollars in taxpayer allocated funds. Ed, can you pull the microphone closer to you? Sure. Last year, for example, the OIG identified the need for increased oversight in about 122 million dollars in taxpayer allocated funds to offices like the Sheriff's Office and the Orleans Parish Communications District. Following our recommendations, the City Council began drafting an ordinance requiring these outside agencies to track expenditures in city grass, thereby allowing for greater oversight of taxpayer money. Um this year alone, we've identified about sixteen million dollars in potential economic loss prevented. Uh given our budget, that gives us a rate of return on the city's investment in us at about 369 percent, which is a pretty good investment. Um at this time I'd like to introduce my staff, my um deputy inspector general, Ally Burroughs, Chief of Investigations, uh Chuck Williams, uh Chief Evaluator Patrice uh Rose, and uh we'll go ahead and get started. Good morning. The Office of Inspector General has four overarching goals. They cover nine objectives. Goal one is to prevent and detect fraud waste and abuse. We do this by providing a citizens' academy and department-wide trainings to citizens, department managers, and legislators, where we discuss our work and how we can help to prevent fraud waste and abuse. We also investigate allegations of fraud, issue best practice recommendations, monitor high risk procurements, and work collaboratively with the Bureau of Purchasing. Goal two is to focus our activities on the right issues at the right time. Our objective here is to make sure we are directing the appropriate resources on issues that have the greatest impact to the city and its citizens. To this end, we conduct a risk assessment, develop an annual work plan, and strive to provide timely recommendations for positive improvements. Part of our goal is to be timely and relative. Part of our goal to be timely and relative involves making sure we monitor current event and emerging trends and maintain relationships with external partners who can provide us with critical information. We will uh do so by ensuring that our projects are performed by independent staff members, that is, they're free of both professional and personal uh conflict. We will do that by uh maintaining organizational independence as required by the City Council, or excuse me, by the uh city ordinance and city charter. We will require our staffs to obtain uh continuing professional education and maintain their certifications, uh and uh which would include receiving advanced degrees and obtaining prior work experience uh and and then earning national nationally recognized certifications. We'll also ensure that our OIG develops and implements methodology in accordance with the professional standards to maintain high degree of quality control by developing policies and procedures and ensuring that our personnel understands those policies and procedures. Then finally we will communicate those reports to the citizens of New Orleans. We will uh communicate our findings and other informations with managers and those charged with governance and uh inform decision makers of findings, identify causes of reported problems, and work with decision makers to develop recommendations that serve as a basis of improvement. Finally, we will publish those uh reports and findings to city governance department managers and those charged with governance, and then finally to the public. As you can see here, our office is growing significantly. We now have 25 employees. This is our org chart. Um we have four departments, audit, inspections and evaluations, investigations, and IT and intelligence analysis. No, I I have a slide too. Okay. Um yeah, so so we have several projects underway um and we're gonna continue to ensure the city's limited resources are used in an efficient and effective manner. Um, we we just don't have the money uh to not ensure that our limited resources are being used in the most efficient and effective manner.
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