New Orleans Mayor Latoya Cantrell testified in front of the Legislature that the Crescent City is facing a 150 million dollar shortfall since the pandemic began in March. Cantrell said they’ve been granted less than 60 million dollars in federal CARES Act money by the state, and that’s just not enough.
“We are hurting desperately and we are not alone,” said Cantrell. “I am not just here talking about Orleans Parish I am talking about local governments who are feeling it.”
Through those CARES Act funds, some one-time dollars, and a variety of other efforts the city has cut that deficit down to 41 million dollars. To close the gap employees are being encouraged to retire early, contracts are being cut and vacant positions are being left open.
The city is furloughing its entire 4,000 person workforce for one day per pay period through the end of the year to save an estimated six million dollars. Cantrell said they had no choice.
“We have done everything possible, everything possible, to prevent furloughs and layoffs but everything has to be on the table,” said Cantrell.
Cantrell said there’s no way local governments will be able to restart their economies next year with budgets deep in the red.
“If we cannot provide the basic city services to allow our cities to function as we know that they need to then I do not know how our economy will bounce back as we know it can,” said Cantrell.
Republicans on the Appropriations committee told the mayor that the city could start to see more tax revenue if she loosened the restrictions on bars and restaurants. The mayor says bars will open to outside patio services this Friday as the city will move to Phase 3.2 this Friday.
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