City of New Orleans Press Releases

FOR IMMEDIATE RELEASE
October 27, 2009

HEARING THE CHALLENGES

MAYOR MEETS WITH CITY EMPLOYEES TO DISCUSS THE 2010 BUDGET PROPOSAL
As the City prepares for the beginning of annual budget hearings that will last approximately a month, Mayor Nagin along with the City's Budget and Finance Offices met with hundreds of city employees to provide necessary information on the upcoming challenges of the 2010 Budget. During a full day of three (3) staff meetings, the Mayor spoke with department heads and staffers frankly about the effects of the city's budget crisis beginning with a projected shortfall of $68 million.

Within the administrations proposal that will be formally presented to the New Orleans City Council on Friday, October 30th, Mayor Nagin shared the changes in recurring revenues and personnel expenditures. City budget officials also disclosed possible changes to healthcare coverage, a reduction in non-essential services along with a city-wide 10 percent cut, an on-going hiring freeze, and other targeted reductions.

"This is the third major budget challenge our city has faced during my Administration," said Mayor Nagin. "When I entered office seven years ago, we had only two days of cash in the bank. Through sound financial management, we persevered. Then after Hurricane Katrina, our entire economy was shut down. We avoided bankruptcy and put the City on stable financial ground and today, all three major credit rating agencies have raised our bond rating to investment grade. As we have proven before, together, we will make it through this challenge."

--END--

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