New Orleans

New Orleans Ordered to Pay $10 Million to Schools, $90 Million Settlement Nixed by Judge

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Published on March 20, 2025
New Orleans Ordered to Pay $10 Million to Schools, $90 Million Settlement Nixed by JudgeSource: Unsplash/ Giorgio Trovato

In the simmering fiscal dispute between the City of New Orleans and its school board, Civil District Court Judge Nicole Sheppard has ruled that while the city is not obligated to honor a purported $90 million settlement, it must still make a $10 million payment to Orleans Parish schools. According to WWNO, the initial agreement between the city and the school board stumbled chiefly because Mayor LaToya Cantrell's signature was missing from the negotiating table, rendering the $90 million pact germane to the winds of judicial deliberations.

Even though Gilbert Montano, the city's chief administrative officer, may have lacked the authority to cement the deal in the eyes of the law, a minor but crucial victory was handed over to the school board. They are to receive $10 million in the next 30 days mandated by Judge Sheppard, a fiscal patch amidst their daunting $50 million budgetary crevasse. This slice of finance, as reported by WWNO, comes from the city's budget, which had Mayor Cantrell's approval, marking the funds as an uncontested obligation.

Across the aisle, Bill Aaron, attorney for the Orleans Parish School Board, conveyed his nuanced satisfaction. Having yearned for the court to validate the agreement and uphold the $10 million payment, he acknowledges the partial triumph. "We got half a loaf. The court essentially split the baby," Aaron is quoted in a statement covered by WDSU. Meanwhile, the school board contemplates employing $25 million from its reserves as a makeshift bridge to straddle the financial gap, waiting for the city's commitment to materialize.

The dispute, filled with its seesaw negotiations and legal tangles, pinches an already strained relationship between New Orleans' administration and the education stewards of the city's youth. While the Sheppard decision afforded a semblance of relief to the school board, the city was equally spared from the cumbersome load of a more substantial payout. As per FOX 8 Live, Sheppard agreed that no formal accord was struck for the city to disburse anything beyond the adjudicated $10 million.