The City of New Orleans reported on April 16 that it has made early progress in stabilizing its finances after inheriting a chaotic and complex budget deficit. According to the Moreno administration, initial results include improved tax revenue collection, better cash flow management, and reduced overtime spending.
Officials say city revenues have exceeded expenditures by $91 million through February. The expenditure budget is calculated as the total annual budget divided by twelve and adjusted for the current month to provide a monthly benchmark. Through strategic cash management, Chief Administrative Officer Joe Giarrusso and the Moreno administration have reserved $89 million in a consolidated fund to ensure liquidity for upcoming months. This fund includes contributions from various sources such as Sewerage and Water Board New Orleans, federal grant receivables, New Orleans Building Commission, American Rescue Plan Act funds, Wisner funds, and reclassified ARPA resources.
Earlier this week, the city launched an Overtime Monitoring Dashboard aimed at tracking and controlling overtime spending across departments. Officials noted significant year-over-year savings: overtime costs dropped by about $8 million in the first quarter of 2026 compared to the same period in 2025—a decrease of 44 percent.
Additional progress cited includes stable building and trade permit approval counts from Quarter 1 of 2025 to Quarter 1 of 2026 despite reduced overtime. Median approval time has been cut from sixteen days to seven days. The Department of Public Works turned on two thousand streetlights, filled six thousand potholes, and moved around three hundred barricades for Mardi Gras festivities.
Chief Administrative Officer Joe Giarrusso said: “This is what happens when good ideas meet discipline, hard work, and proactive management… 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.”
Mayor Helena Moreno added: “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… 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 while also saving money.”
Looking ahead, officials said they are already beginning preparations for next year’s budget process.
