City Hall Launches Layoffs Amid New Orleans Budget Challenges

New Orleans is facing significant budget challenges, prompting Mayor-elect Helena Moreno to implement layoffs across key municipal departments. This decision affects 13 staff members as part of an overarching plan to save $37 million.

Details of the Layoffs

On December 12, Moreno’s transition team notified employees from two departments that their positions would be terminated by January 12, when she officially takes office. Four employees from the Mayor’s Office of Youth and Families and nine from the Office of Criminal Justice Coordination received the news.

Rationale Behind the Cuts

Moreno’s administration is restructuring the oversight of these departments. Michael Harrison, the incoming Deputy Mayor for Public Safety, will manage criminal justice coordination. Meanwhile, Dr. Jennifer Avegno, the incoming Deputy Mayor for Health and Human Services, will oversee youth and family programs.

• The layoffs are just the first phase, with more expected by January 6.
• A total of 36 unclassified employees and 62 employees with less than a year of service are expected to be let go.
• Additionally, furloughs will affect 724 non-public safety employees, requiring them to take a day without pay each pay period.

Projected Financial Impact

These measures are part of Moreno’s spending plan, which aims to address a projected budget deficit of $222 million. The plan also includes a hiring freeze on 134 vacant positions and is expected to generate $37.4 million in savings.

Additional Budget Considerations

Furthermore, Moreno seeks to generate $74 million in new revenue from various sources, including the city’s Sewerage and Water Board and unspent federal grants. Her proposed budget is designed to be a more careful and targeted approach to cuts compared to previous proposals.

Program Cuts

As part of the budget adjustments, significant programs will also see reductions in funding. Notably:

• $740,000 will be cut from the Pathways Youth Internship Program, which serves at-risk youth.
• $400,000 will be cut from the Evening Reporting Center program, an alternative to detention for students.

The impact of these cuts on additional programs within the affected departments remains to be assessed. These changes reflect Moreno’s vision for a more integrated and effective city government.