BUDGET 2010
Mayor Nagin Presents the Budget Proposal

In his final budget address, Mayor C. Ray Nagin today presented his plan for addressing the projected $68 million shortfall for the 2010 budget while maintaining the current services and outlined his vision for ensuring a strong future. Mayor Nagin's budget, which has the theme "Sustaining our Recovery," illustrates the success of the city's recovery and rebuilding programs. According to the presentation, the City is seeing increased obligations from FEMA for rebuilding projects, has received state approval for most programs that will use the $411 million Disaster Community Development Block Grant funds and has encumbered 87 percent of the $200 million Revolving Loan Fund approved by the State Legislature to provide funding for FEMA reimbursable projects. At the same time, the operating budget faces difficulties. The City originally projected a $43 million shortfall, which increased to $68 million as a result of lower than expected tax collections, additional unforeseen pension increases, additional worker's compensation costs, court ordered salary increases for firefighters, and the accelerated use of the remaining $10 million in Federal Community Disaster Loans.