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New Orleans City Council approves amended 2026 budget after debate over $74M in added revenues
Summary
The council voted unanimously to adopt amended operating and expenditure ordinances for the 2026 budget after recognizing roughly $74 million in additional revenues — including ARPA reclassification, sewerage reimbursements, Wisner settlement proceeds and parking collections — and after hours of public comment urging protection for housing and city services.
The New Orleans City Council on Monday approved an amended 2026 operating budget that recognizes roughly $74 million in additional revenues and aims to protect frontline city services and avoid staff furloughs.
The council chair put forward an omnibus amendment to increase the general fund to approximately $799 million by recognizing $14.75 million in ARPA reclassification, $29.5 million in anticipated Sewerage & Water Board reimbursements, Wisner-related settlement receipts and projected parking enforcement collections. After debate and public comment, the amendment passed 7–0 and the council later adopted the operating and expenditure ordinances as amended by the same margin.
Why it matters: The amendment was designed to plug a significant shortfall the city has grappled with since a fiscal collapse in September. Council members said the added revenue will preserve essential services — including sanitation and 9-1-1 — and limit layoffs or furloughs for city employees.
Council members and staff repeatedly described the decision as conservative. Council President said the council will continue to work “every hour of each day” to finalize details and guard services. Council Member Moreno said the amendment restored funding to key programs and added roughly $1.5 million in discretionary council funds for community priorities.
What changed: The amendment recognized several streams of funds the council determined could be documented for 2026 budgeting. Staff and outside consultants testified that some receipts (Sewerage & Water reimbursements; Wisner settlement proceeds) can be recorded as deferred or receivable revenue now and recognized next year; consultants projected additional collections from parking enforcement with the hiring of 50 officers and stepped-up collections efforts.
Public comment and next steps: Scores of residents and nonprofit leaders urged the council to protect the Housing Trust Fund (a voter-approved 2% of the general fund), violence-prevention programs and ARPA-funded social services. After the vote the council adopted a motion authorizing clerical and technical adjustments to the passed ordinances and said it will continue monthly budget monitoring and reconvene REC on Jan. 12 to finalize certain recognitions.
The council voted on the amendment and final ordinances by voice and electronic machine; the amendment and the ordinances passed unanimously (7–0).
