New Orleans City Council passes guardrail legislation, creates safeguards

NEW ORLEANS (WGNO) — Big changes are being made when it comes to the city of New Orleans’ finances. The city council is creating some new rules in an attempt to prevent future deficits.

Council President JP Morrell has introduced an amendment to the home rule charter, which, if approved by voters, would require the mayor to get council approval on money used outside of the set budget.

“The administration has to say, I am moving this money from department A to plug the hole in department B further and instructs the finance department and the CAO going forward not to deficit spend. If something is not identified, it cannot be spent,” said Morrell.

The council also passed a resolution for the legislative auditor to investigate why city spending has caused the $160 million deficit.

Mayor LaToya Cantrell is all for it.

“We welcome investigations. It seems like that’s been the hallmark of the tenure here, pretty much of this council. So, we’ve demonstrated in the past that when we get a loan, we not only pay it back, but it makes us even better,” said Cantrell.

“The reality is that unless we analyze how we got here and we change the way we budget, we are destined to repeat it,” said Morrell.

Additionally, a resolution was approved to ensure that several steps are taken by the Department of Finance, as far as the reporting of different expenditures.

Cantrell calls this redundant.

“You already have an independent auditor. Your auditors are, as are cars, Riggs and Ingram. And we’re already working with the legislative auditor and LMA,” said Cantrell.

“Those reports will go straight to the legislative auditor, which will also be coupled with an ordinance that will create a special fund that will put the funding that we do receive from the loan and a specific fund so it’s easier to track and monitor,” said Mayor-elect Helena Moreno.

Nov. 12 is the last day payroll is set to be funded.

And if the city can’t come up with the money needed to pay employees, they’ll have to resort to their last option.

“If we activate the rainy-day fund, we will see coverage through December, and we also have sales tax revenues that are coming in on a monthly basis,” said New Orleans Director of Finance Romy Schofield-Samuel.

As of now, the emails are going out that overtime and unnecessary spending will be clawed back. The uncertainty is whether or not workers are going to come to work when they are used to getting that overtime.

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