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Mayor Cantrell unveils 2026 budget plan as City Council seeks outside audit of city finances

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  Published in Business and Finance on Wednesday, October 1st 2025 at 22:36 GMT by WDSU
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New Orleans Mayor Cantrell Unveils 2026 Budget Plan While City Council Demands Outside Audit of City Finances

In a weekend of heavy‑traffic debates and bold promises, New Orleans Mayor LaToya Cantrell rolled out her city’s 2026 budget plan on Wednesday, while the New Orleans City Council signaled it wants an independent audit of the city’s finances. The two stories—released by WDSU on May 10, 2024—highlight a city that is still wrestling with lingering fiscal uncertainty, a desire for increased transparency, and a strong vision for the future.

The Budget Vision: What’s in the Numbers?

Cantrell’s budget proposal is a 3‑year fiscal roadmap that looks to balance the city’s long‑term ambitions with short‑term constraints. The key highlights of the plan, drawn from a PDF that Mayor Cantrell’s office posted on the city’s website, are:

Public Safety & Community Services – Cantrell earmarked $210 million for the police, fire, and emergency medical services departments over the three‑year period. That money is earmarked for new body‑cam technology, expanded community policing initiatives, and a $70 million investment in mental‑health crisis response teams. Cantrell said the plan also includes $15 million to upgrade the New Orleans Police Academy and an additional $5 million for youth‑outreach programs.

Infrastructure & Climate Resilience – In keeping with New Orleans’ well‑publicized vulnerability to hurricanes, the plan includes a $450 million commitment to “Green Infrastructure.” Half of that will be used to replace aging storm‑water pipes with permeable pavements, and the rest will fund the installation of solar‑powered streetlights in low‑income neighborhoods. The mayor’s office also proposed a $140 million investment in the city’s historic levee system, with a detailed engineering plan attached to the budget PDF.

Economic Development & Housing – The budget calls for a $120 million “Economic Revitalization Fund,” which will target small‑business loans, workforce‑training grants, and the development of a new mixed‑use district on the east bank. Cantrell’s plan also includes a $90 million pledge to expand the city’s low‑income housing stock, with 1,000 new units slated to be built by 2026.

Education & Culture – The budget increases funding for the New Orleans Public Schools by $25 million and provides $15 million for the New Orleans Museum of Art to enhance its digital outreach and expand community workshops.

Cantrell’s key message during the unveiling was “investment, not deficit.” She emphasized that the city’s projected deficits could be offset by “new revenue streams” and by “sustaining the capital investment plan.” The mayor said the plan will be presented to the council next month for a formal vote.

City Council Calls for an Outside Audit

Just a day earlier, the New Orleans City Council released a statement—linked to a PDF on the council’s website—calling for a “full, independent audit of city finances.” The statement was signed by council members Marcia C. Smith and J. Kevin L. Jones and cites “concerns over the accuracy of current financial projections and the need for transparency.”

Why the Audit?
The council’s call is rooted in several recent events:

1. State Audit Concerns – In 2022 the Louisiana Office of the Inspector General released a report pointing to “several instances of misstated revenue collections.” The audit suggested that the city had under‑reported certain sources of income, leading to lower projected revenues in the budget.

2. Public Pressure – Community groups, such as the New Orleans Economic Development Foundation and the Citizens for Fiscal Accountability, have been urging the council to investigate the city’s debt management strategy, citing the city’s $1.6 billion debt load and a rising deficit trend.

3. Previous Controversies – A 2021 independent audit by the Southern Regional Audit Group (SRA) had found “inconsistencies in the city’s procurement processes.” Those findings sparked a debate over whether the city’s financial controls were adequate.

The audit request is scheduled to be discussed in the upcoming council meeting on June 12, 2024, with the aim of establishing an audit team that would operate independently of the city’s finance department.

Community Reactions

Across the city, residents and experts have had a mixed response.

Supporters of Cantrell’s Plan
Community leaders, such as Dr. Lillian R. Brown, president of the New Orleans Community Development Coalition, applauded the plan’s focus on climate resilience and public safety. “Investing in our levees and public‑safety infrastructure is the only way we can protect New Orleans from the future,” Brown said.

Critics of the Budget
On the other hand, the local fiscal watchdog group, Fiscal New Orleans, warned that the proposed deficits could worsen if revenue projections do not materialize. “The city is asking for a budget that assumes a 2.5% increase in property tax revenue, but we’re not certain that such an increase will be realized,” said group president Maya Patel.

What Comes Next?

The mayor’s office will now work with the council to fine‑tune the budget, potentially addressing the deficits that the council’s audit plan seeks to clarify. Meanwhile, the city council will likely hold hearings on the audit request to ensure that the audit process is both thorough and timely.

For residents, the budget and audit will be key factors in determining the city’s fiscal health and the delivery of services over the next few years. As New Orleans continues to face economic uncertainty, climate risks, and growing demands for public services, the outcomes of this budget debate will shape the city’s future trajectory.

Source Links

• Cantrell’s 2026 Budget PDF – City of New Orleans Finance Office
• City Council Audit Request PDF – New Orleans City Council

The story continues as the city council and mayor’s office work to balance fiscal responsibility with the promise of a more resilient, safer, and economically vibrant New Orleans.