New Orleans

Mayor Moreno Announces Furlough Plan to Address Budget Deficit

AI Assisted Icon
Published on January 18, 2026
Mayor Moreno Announces Furlough Plan to Address Budget DeficitSource: Wikipedia/Todd Ragusa, CC BY-SA 4.0, via Wikimedia Commons

In an effort to balance a substantial city budget deficit, Mayor Helena Moreno has announced a tiered furlough plan that seeks to lessen the financial blow for the city's lowest-paid employees. According to official news from the City of New Orleans, individuals earning less than $40,000 a year will not be subjected to the upcoming furloughs, a move aimed at shielding frontline workers from further economic hardship.

Running with the pay scale, under Moreno's directive, the furlough plan will impose more significant cuts on those with higher incomes, who are deemed more able to weather these fiscal adjustments. "After meeting with the AFSCME 2349, the local City Workers Union, I promised to protect the most vulnerable city employees from further financial strain - and through the dedicated work of our team, we were able to do just that," Moreno is quoted stating in the City of New Orleans announcement. The Mayor underscored that her team is dedicated to lifting the furlough as speedily as possible by generating new revenue and increasing government efficiency.

Emergency personnel, including public safety workers, will likewise be excluded from the furloughs, as per the guidance distributed to city departments and agencies by CAO Giarrusso. The same guidance outlines Mayor Moreno's sliding furlough scale and delivers implementation details. Furloughs are set to commence in the February 15th payroll period.

Furloughs, typically a measure of last resort in budgetary crises, have been deemed necessary, explained CAO Giarrusso: "Furloughs are the last tactic we would want to use to help solve this budget crisis, but they were unfortunately necessary. However, Mayor Moreno’s plan shifts the burden to those who can most shoulder it and provides a fair and equitable way forward." The CAO further indicated the administration's commitment to expediting the end of these fiscal constraints. The comprehensive furlough package by Moreno and her team comes as a solution to the daunting inheritance of a deficit exceeding $200 million, as stated by the City of New Orleans.