The City of New Orleans is staring down a $100 million hole in its budget. And no matter how you slice it, residents are likely to feel the impact.
Economist Gregory Price breaks it down simply: “Running a city’s finances, though more complex, mimics what we do at home in a nutshell. You can either cut back or find more income.”
That means the city has only two options: decrease spending or increase revenue. Neither option tends to go over well with the public.
So, what could that look like? Price says big-ticket items like police and fire make up a large portion of the budget. Cutting there would mean ripple effects on public safety. On the other hand, raising revenue could come in the form of higher fees; like charging more for trash collection.
And with this being an election year, the conversation gets even trickier.
“Campaigns may influence someone to make promises that might prove challenging to keep if elected, to say the least,” Price says.
No matter how it’s handled, one thing is clear: tough decisions are coming. And New Orleanians should brace for changes that could hit close to home.