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Can someone explain to me theNew Orleans payroll crisis in simple terms?

Posted on 11/1/25 at 9:31 am
Posted by mule74
Watersound Beach
Member since Nov 2004
12402 posts
Posted on 11/1/25 at 9:31 am
I’m not trying to get into NOLA sucks, shite hole city, etc. I’m asking this is a real outside observer.

First, is this truly a “crisis” or is this something that will get papered over quickly? Secondly, how did this actually happen? It seems difficult to me that the city could run out of payroll without significant theft from the coffers.
Posted by Horsemeat
Truckin' somewhere in the US
Member since Dec 2014
15060 posts
Posted on 11/1/25 at 9:33 am to
Katrina funds and covid cash ran out, city has been spending too much on stupid shite instead of actually improving things. Teedy don't care, teedy has her plane ride booked minutes after inauguration. City is fricked though.
Posted by Hangover Haven
Metry
Member since Oct 2013
31726 posts
Posted on 11/1/25 at 9:35 am to
The Destroya put the city in a $160 Mill budget deficit...

She had trips to take on the city's dime...
Posted by ShoeBang
Member since May 2012
21500 posts
Posted on 11/1/25 at 9:38 am to
Simply put:

Posted by jlovel7
NOT Louisiana
Member since Aug 2014
23694 posts
Posted on 11/1/25 at 9:55 am to
They broke
Posted by TheHarahanian
Actually not Harahan as of 6/2023
Member since May 2017
22655 posts
Posted on 11/1/25 at 9:58 am to

Summary:
Instead of being paid to do nothing, city employees will just do nothing.
Posted by W2NOMO
Member since Jul 2025
1456 posts
Posted on 11/1/25 at 10:00 am to
She treated the city as she treats herself. Spend all the money, spend all the credik, let someone else be held responsible.
Posted by jaytothen
Member since Jan 2020
8211 posts
Posted on 11/1/25 at 10:02 am to
quote:

Secondly, how did this actually happen? It seems difficult to me that the city could run out of payroll without significant theft from the coffers.


Posted by TigerintheNO
New Orleans
Member since Jan 2004
43932 posts
Posted on 11/1/25 at 10:05 am to
-mayor only budgeted 54k for city overtime, overtime will reach in excess of 50 million (terrorist attack, Super Bowl, jailbreak)

-Katrina projects that have been completed with city money have not been reimbursed from the federal government due to the shutdown.

-revenue estimates were off by $30 million

This post was edited on 11/1/25 at 10:06 am
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
37678 posts
Posted on 11/1/25 at 10:06 am to
quote:

Secondly, how did this actually happen? It seems difficult to me that the city could run out of payroll without significant theft from the coffers.


1. Latoya
2. City council over sight was terrible
3. Elect a member of the city council to mayor who watched this all go down for 8 years
Posted by geauxpurple
New Orleans
Member since Jul 2014
16069 posts
Posted on 11/1/25 at 10:09 am to
The Ponzi scheme came to an end.
They were counting on FEMA money for road projects to come in and were going to use that to pay payroll. It didn't.
Don't ask me what they were going to use to fix the roads. I guess the roads will just have to fix themselves.
Posted by lepdagod
Baton Rouge
Member since Jan 2015
5334 posts
Posted on 11/1/25 at 10:19 am to
quote:

Katrina funds


I read somewhere that NO has billions of dollars in Katrina money that has to be spent in a certain way… can’t be access or something
Posted by lsuconnman
Baton rouge
Member since Feb 2007
4366 posts
Posted on 11/1/25 at 10:20 am to
quote:

They were counting on FEMA money for road projects to come in and were going to use that to pay payroll.


I’d be interested how many times the city billed FEMA to fix roads that FEMA already paid them to fix.
Posted by Hetfield
Dallas
Member since Jun 2013
9068 posts
Posted on 11/1/25 at 10:21 am to
Elections have Consequences. You are seeing the Consequences of these Elections.

I blame the White Lexus Liberal Uptown Elitist Class & White transplant Hipsters just as much as I do the local Black community for their Vote Blue No Matter Who attitude. Any person who leans Conservative that could possibly make the city better won't even run for office. And here we are.
Posted by soccerfüt
Location: A Series of Tubes
Member since May 2013
72512 posts
Posted on 11/1/25 at 10:27 am to
quote:

I blame the White Lexus Liberal Uptown Elitist Class & White transplant Hipsters
Between me and my kids & their spouses we have 4 white Lexus vehicles.

I don’t appreciate being blamed for this crisis.
Posted by Tarps99
Lafourche Parish
Member since Apr 2017
11249 posts
Posted on 11/1/25 at 10:34 am to
quote:

I read somewhere that NO has billions of dollars in Katrina money that has to be spent in a certain way… can’t be access or something


As with most federal and state grant programs or capital outlay dollars, you need to have a certain amount of local money in the project as a match.

Since New Orleans doesn’t want or doesn’t have the dimes to spend, they cannot access that money.
This post was edited on 11/1/25 at 10:44 am
Posted by jizzle6609
Houston
Member since Jul 2009
17082 posts
Posted on 11/1/25 at 10:49 am to
No money, mo problems.
Posted by TigersSEC2010
Warren, Michigan
Member since Jan 2010
38124 posts
Posted on 11/1/25 at 11:02 am to
Katrina was 20 years ago, how is there a dollar left related to that storm?
Posted by Powerman
Member since Jan 2004
170140 posts
Posted on 11/1/25 at 11:07 am to
quote:


She had trips to take on the city's dime...

As disgraceful as that is that isn't a 160 million dollar expense

Sounds like the city's finances are just poorly run and she obviously has ownership on that front
Posted by Patfic15
Baton Rouge
Member since Sep 2018
4151 posts
Posted on 11/1/25 at 11:09 am to
Democrats
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