NEW ORLEANS — Late last week, the Bureau of Governmental Research (BGR) released a report praising the Administration’s fiscal stewardship and transparency during 2026 and highlighting efforts by the Moreno Administration and the Council to strengthen the City’s financial position. The report positively reviews the significant efficiencies, fiscal controls, and improved revenue management steps the Administration has taken throughout 2026 to close a massive $200m budget deficit it inherited.
“The City has achieved structural budget balance under Mayor Moreno far faster than anyone expected,” said Chief Administrative Officer Joe Giarrusso. “While there is still more work to be done, the City has nearly $140 million in the bank earning interest, publicly-facing dashboard showing the budget and overtime expenses, and, is poised to pass a budget in 2027 where revenues meet expenses. This was not done overnight or without making tough decisions. Mayor Moreno demanded urgency on ensuring the City is on sound financial footing. The City of New Orleans is far stronger financially today than it was before she took office.”
The BGR identifies several key changes instituted by the Moreno Administration including:
- Rebuilding the city’s cash reserves through the sale of nine years of Caesars leasing revenue for over $100m
- Placing reserves in interest-bearing accounts to ensure the people’s money earns interest and mitigates inflation
- Increasing budget transparency through the debut of new real-time budget dashboards and strong fiscal reporting and controls
- Matching reoccurring expenditures to revenues in order to build a lean 2027 budget with only 2% use of one-time money, compared to 20% in 2026
- Adjusting permit fees and sanitation rates for inflation to ensure service costs don’t outpace revenues
- Reducing costs and cutting waste through travel restrictions, hundreds of vehicles sales, and revised take-home car policies
The BGR positively reviews the work completed by the Administration this year and notes that as a result of these policies, the “city has navigated its cash crisis in 2026 with spending controls, improved revenue collections, and more than $220 million in one-time revenues and other cash sources. BGR estimates as of September 24 that the City is on track to end 2026 with a modest cash surplus. The City has also rebuilt its emergency reserves to nearly $140 million – about the minimum recommended level of two months of operating expenditures.”
The city agrees with BGR recommendations for the future, including continuing to build long-term strategies that ensure financial stability, garnering reserves that bolster the city standings with bond rating houses, and ensuring strong controls over those reserve funds so they cannot be used, except in exceptional circumstances. The Administration continues to be committed to public engagement and collaboration with the City Council to fortify the budget and fiscal controls for the years to come.
Read the full BGR report: Click Here