City of New Orleans Press Releases

FOR IMMEDIATE RELEASE
October 27, 2009

MAYOR NAGIN HOLDS DAY OF MEETINGS WITH CITY EMPLOYEES

*MEETINGS FOCUS ON 2010 BUDGET* (NEW ORLEANS) -- October 26, 2009 -- Mayor C. Ray Nagin met with several hundred city employees in staff meetings throughout the day today to discuss the 2010 budget challenges and proposed initiatives to reduce the nearly $68 million budget deficit. "The employees of the City of New Orleans have time and time again risen above tough challenges -- forced layoffs due to Hurricane Katrina that drastically reduced the workforce and consecutive years of hiring freezes and department budget cuts. Now, again, city employees are facing additional impacts in 2010," said Mayor Nagin. "It was imperative that they hear from me first-hand about our budget proposals and have an opportunity to ask any questions." While no layoffs are anticipated, city employees will experience the greatest impact of the effort to balance the 2010 budget. Currently, there are more than 4,000 city employees, the vast majority of whom work in public safety and the court system. There are only 1,200 city employees who do not fit in those categories. Following meetings with Council members, one of the budget initiatives proposed is to implement 12 furlough days for all city employees. The days would be clustered around existing holidays to extend the breaks that employees receive. The downturn in the national economy and the cost of healthcare nationwide will result in increases in health insurance premiums and insurance deductibles for city employees. The City also plans to extend a hiring freeze Mayor Nagin implemented in 2009, and all departments city-wide -- including contractors -- will receive a funding reduction of at least 10 percent. In addition, both the Mayor's Office and the City Council will reduce staffing by at least 10 percent. This is the third consecutive staff reduction for the Mayor's Office. The City also expects to engage in more aggressive collection and enforcement of existing fees (Public Works, Safety & Permits) and to decrease the city's contribution to non-contract based and non-judicial agencies. At the last Revenue Estimating Conference, the City Administration announced a likely $43 million shortfall. 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, the shortfall increased to $68 million. The concern remains that there is the absence of adequate recurring revenues, which the Chief Financial Officer warned in 2008 would lead to a sizable deficit. City administrators met last week with the leaders of non-city agencies currently funded by the City of New Orleans. The Administration will continue its budget meeting schedule with stakeholders later this week and with members of the community the following next week.
--END--

CITY OF NEW ORLEANS Mayor’s Press Office 1300 Perdido Street, Suite 2E04 New Orleans, Louisiana 70112