Financially distressed New Orleans raises revenue projection

The financially struggling New Orleans city government increased its estimate of this year's general fund revenues by 3.6% Wednesday.

The New Orleans Revenue Estimating Conference unanimously approved a general fund revenue estimate of $828.8 million to replace the initial budget figure of $799.7 million.

"Any positive revenue variance is good news for the city," said Alex Louie, director at S&P Global Ratings. "The improvement of $29 million represents 18% of its estimated 2025 general fund deficit, which is significant; however, the city still has a long way to go to close the structural gap. The revenue estimates also do not indicate whether revenue will be recurring or not, which is a key factor in reestablishing fiscal balance for the city."

City Chief Administrative Officer Joseph Giarrusso said the city was adding about $37 million ? consisting of $15 million from the New Orleans Building Corp., $5 million from the New Orleans Municipal and Traffic Court, $14 million from reclassified bond eligible funds and $2.9 million from the federal Gulf of Mexico Energy Security Act.

The city subtracted $2.3 million for lowered expected recovery from resolution of the Wisner Trust lawsuit and $5.45 million in reduced American Rescue Plan Act money.

New Orleans is rated Baa2 with a negative outlook by Moody's Ratings, BBB-plus with a negative outlook by S&P Global Ratings and A-minus with a negative outlook by Fitch Ratings.

Giarrusso, responding to a question, said the city was on track to hire 50 parking ticket attendants by July. The city plans to increase revenue from parking tickets with the hirings.

In the fall New Orleans had to take out a $125 million revenue anticipation note to make payroll.