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Message
re: Can someone explain to me theNew Orleans payroll crisis in simple terms?
Posted on 11/1/25 at 11:14 am to Tarps99
Posted on 11/1/25 at 11:14 am to Tarps99
quote:
Since New Orleans doesn’t want or doesn’t have the dimes to spend, they cannot access that money.
So it is true… what exactly does this money have to be spent on
1
Posted on 11/1/25 at 12:13 pm to lepdagod
quote:
So it is true… what exactly does this money have to be spent on
Street repairs, sewer improvements, quality of life, infrastructure improvements, etc.
Stuff the city should be spending on everyday, but a bloated administration budget and lack of planning have drained the coffers.
Some projects are probably too old to do today or have evolved into no longer being necessary, but still exist as recovery grants in specific pools of money or pipeline to payment when completed. In many cases, sometimes you have to finance the entire project and expend your own dollars before the feds or state reimburse you.
Posted on 11/1/25 at 12:18 pm to jmarto1
Voters. It's that simple.
Posted on 11/1/25 at 12:33 pm to travelgamer
quote:
Voters. It's that simple.
In one of the least educated states....
Posted on 11/1/25 at 12:35 pm to Tarps99
quote:
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.
Yes there is a match that the city needs to put up for some of the funds, HOWEVER there is money the city is due for reimbursement for funds that have already been paid with the match money that they cant get access to because their record keeping that details what has been spent and paid is woefully inaccurate.
Posted on 11/1/25 at 12:36 pm to mule74
NOLA spent more than it made and now can’t pay its bills.
Posted on 11/1/25 at 12:41 pm to geauxpurple
quote:
Most FEMA grants are paid as reimbursements, but the city draws advance payments on the roads grant through an agreement with the Governor’s Office of Homeland Security and Preparedness, the state agency that administers the money, according to city and state officials.
The grant payments are held in a separate fund, while payroll is typically paid from taxes, fees and other standard sources of money held in the city’s general fund.
The Cantrell administration has not responded to multiple requests for an explanation on how the inability to obtain advance payments for road repairs would affect payroll for city workers.
We know why there is a deficit, but what we don't know is why is there a payroll issue. They should be in separate accounts. Was Cantrell really going to use FEMA money to make payroll?
Posted on 11/1/25 at 12:41 pm to mule74
quote:
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.
It isn't terribly uncommon for city budgets to get shorted and underfunding to happen. Usually they are bailed out by the state or bond programs. Oversight is definitely lacking and the city is to blame but you are dealing with elected officials rather than people hired in with experience in such fields.
For instance St Tammany is going through similar shite right now but that isn't as fun as 'shithole city". That Parish is taking in money and not funding like they promised.
Also Jefferson Parish lost their bond rating earlier this year because they fricked up their finances and didn't do audits. Basically Jefferson Parish has shite credik because they can't figure out how to address lost money.
Posted on 11/1/25 at 12:44 pm to meangene323
quote:
HOWEVER there is money the city is due for reimbursement for funds that have already been paid with the match money that they cant get access to because their record keeping that details what has been spent and paid is woefully inaccurate.
I knew there was another kernel of detail that was missing.
In some cases the Feds make to hard to qualify for the money and then even if you get approved, they hold back to make sure it was spent a certain way like dictating certain types of contractors with certain employees and vendor choices, etc. Each step has to be documented and categorized before you get your match. That is where the city has failed.
I think federal scrutiny of projects has gotten to the point that it has become a cottage industry where a contractor gets hired to navigate the federal process and they get a cut of the money doled out. It just adds to the cost of the project.
I can remember after Ida, one parish hiring a grant specialist on a contingency to write as many grant applications they could that would qualify and the grant specialist would only get paid on the projects FEMA funded.
I think Graves got it slipped into a bill where FEMA would pay for the added cost of process bureaucracy and pay interest on any money that was delayed.
This post was edited on 11/1/25 at 12:48 pm
Posted on 11/1/25 at 12:47 pm to Hetfield
quote:
Liberal Uptown Elitist Class & White transplant Hipsters just as much as I do the local Black community
Lakeview, don't forget Lakeview.
Posted on 11/1/25 at 1:22 pm to TigerintheNO
quote:
-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
Yes. Budget was going to be screwed no matter what with terror attack and jailbreak, but somewhat inexcusable by both the mayor and council to underestimate labor costs.
Also, City completely overestimated tax revenue, which is odd because those projections are usually very conservative. At the same time in late 2024 it would have been very difficult to anticipate significantly less international visitors for all the reasons not worth discussing here, but that is really hurting revenues.
In summary, there would have been a deficit no matter what, but potential cash flow challenges should have been identified a month or two ago, especially with the possibility and eventuality of a fed shutdown.
Posted on 11/1/25 at 1:51 pm to soccerfüt
quote:
Between me and my kids & their spouses we have 4 white Lexus vehicles. I don’t appreciate being blamed for this crisis.
Same. The elite snobs turn their noses up at Lexus. They prefer the Toyota versions.
Posted on 11/1/25 at 2:11 pm to Horsemeat
quote:
Teedy don't care,
The city of New Orleans is going through one of the worst financial crises it has ever faced. In the meantime, Teedy is filing court motions in her own criminal trial asking a federal judge to reverse her order that keeps Teedy from talking to and colluding with her boy toy Vappie. That’s the most important thing on her mind right now – getting back together with Vappie. I’m guessing she’s going to try to get back into that Pontalba apartment as well.
Posted on 11/1/25 at 2:22 pm to mule74
The don’t call her Destroya for nothing
This post was edited on 11/1/25 at 2:24 pm
Posted on 11/1/25 at 2:24 pm to NOLALGD
quote:
Also, City completely overestimated tax revenue,
A few months back, I remember reading about the city of New Orleans offering victims of the camera ticket scam a huge discount if they paid within a certain period of time.
I don’t recall the numbers exactly, but as I recall, they were expecting to collect something over $100 million as a result of this potential one time cash infusion. In the end, they got something like $8 million.
I then read that they were going back to the legislature and trying to get the legislature to put holds on people’s licenses as a result of these people not paying those fines and interest on their scam camera tickets. As a result, people would be unable to either renew their licenses or get insurance until they paid Orleans Parish every penny of those fines with interest. That was never part of the whole camera tickets scam from the very beginning - it was strictly supposed to be a civil fine. That’s why nobody was paying. The only people who are essentially required to pay were Orleans Paris residents.
I don’t know whatever happened with the legislature, but I can’t imagine the rest of the state allowing such a scam to go on.
This post was edited on 11/1/25 at 2:41 pm
Posted on 11/1/25 at 2:29 pm to TigerintheNO
quote:
revenue estimates were off by $30 million
They’ve driven so much business and affluent population out, they need to budget down another $20M on top of the estimate miss.
You are witnessing the death spiral years of a once great American city. There will be no will in Washington to bail NOLA out after the corruption and waste of post Katrina funding.
Posted on 11/1/25 at 2:46 pm to Geauxldilocks
quote:
They’ve driven so much business and affluent population out
I knew so many people who grew up either Uptown or in Lakeview that I never thought would ever leave Orleans Parish - not even for Old Metairie. They would’ve even told you that back in the 80s and 90s and up to Katrina.
Many, if not most, are now living on the Northshore or places around the country. They just got sick and fricking tired of seeing where their tax dollars were going.
This post was edited on 11/1/25 at 2:47 pm
Posted on 11/1/25 at 2:50 pm to TigerintheNO
quote:
We know why there is a deficit, but what we don't know is why is there a payroll issue. They should be in separate accounts. Was Cantrell really going to use FEMA money to make payroll?
This is something I got out of the one article that I read about the situation. These are two separate pots. The FEMA money goes toward the cities debt. But that is supposed to be a separate account from the payroll. Those accounts are not supposed to be commingled. So even if they get the FEMA money, it shouldn’t be for payroll.
Posted on 11/1/25 at 3:28 pm to ShoeBang
That gif will never get old.
Posted on 11/1/25 at 3:33 pm to jmarto1
quote:
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
Ah HA!
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