NEW ORLEANS – The Moreno Administration highlighted early progress in stabilizing the city’s financing after inheriting a chaotic and complex budget deficit. Initial results include improved tax revenue collection, improved cash flow management, and reduced overtime spending.
The city’s revenues have exceeded expenditure by $91 million to date through February 2026. The expenditure budget is calculated as the total annual budget divided by 12 and adjusted for the current month, which provides a useful monthly benchmark.
Through strategic cash management, CAO Joe Giarrusso and the Moreno administration have been able to reserve $89 million in a consolidated fund to ensure sufficient liquidity in the coming months. The Cash Management Fund (CMF) total includes $22.5 million from Sewerage and Water Board New Orleans (SWBNO,) $17.8 million from federal grant receivables, $15 million from New Orleans Building Commission (NOBC,) $14 million from bond-eligible American Rescue Plan Act (ARPA,) $10 million from Wisner, and $9.3 million from reclassified ARPA.
Earlier this week, the City of New Orleans launched its Overtime Monitoring Dashboard to better track and control overtime spending across departments. The launch comes on the heels of significant year-over-year savings in overtime spending. We can now see that overtime costs dropped by about $8 million in the first quarter of 2026 compared to the same period in 2025, reflecting a 44% decrease.
Additional progress we have made:
- Although overtime was reduced, total building and trade permit approval counts remained stable from Quarter 1 of 2025 to Quarter 1 of 2026.
- Median approval time is being reduced from 16 days to 7.
- DPW kept up the pace, turning on 2,000 streetlights, filling 6,000 potholes, and moving around 300 barricades for Mardi Gras.
- Progress made on tax collections. To date, the City of New Orleans has collected 92% of its budgeted property tax. The city has collected 25% of its projected sales tax and expects to see gains in this tax revenue throughout the year.
“This is what happens when good ideas meet discipline, hard work, and proactive management,” CAO Joe Giarrusso said. “I’m pleased we’re ahead of schedule in this improved position by mid-April. It clearly shows the significant process we’ve made. We’ve been working extremely hard to provide a more stable financial footing for the City of New Orleans. While we continue to audit our fiscal situation and be a better steward of resources, part of the reason we’re here is because of the dedication of Mayor Moreno and our team to ensure we’re putting better processes and accountability in place.”
“I continue to be proud of the great work CAO Joe Giarrusso and our team are doing when it comes to managing the city’s resources and figuring a way out of the complex budget crisis,” Mayor Moreno said. “Despite reduced overtime, I’m happy to see essential operations have been enhanced, proving the city can do more with less. Together, these results demonstrate that the city has maintained, and in some cases improved, service quality and delivery while also saving the city money.”
The Moreno administration says while they’re focused on managing the 2026 budget, they’re in the early stages of planning for the 2027 budget process.
For more information about the City of New Orleans, visit nola.gov.