Cao Budget Presentation Proposal

CITY OF NEW ORLEANS
2013 Budget Proposal
October 29th, 2012
10/29/2012

Mayor’s Office of Communications

2013 Budget Presentation
• Background • Performance Management/Review of Improvements

• 2013 Budget Proposal

2

2013 Budget Proposal

Funding Cuts at the State and Federal level are posing significant budgeting challenges for municipalities across the U.S.
● Nearly 48% of cities plan to reduce workforce this year ● Los Angeles predicts over 200 City jobs will be eliminated due to budgetary challenges

● San Bernardino closing all but one library and reducing 100 jobs including Police and Fire positions
● The State of Louisiana is not meeting its obligation to fund District Attorney, Indigent Defender, or mental health

We must continue to take action to be smart about how we get smaller
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2013 Budget Proposal

The Landrieu Administration addressed an inherited $97M spending gap
Budget Comparison $550M
2009 Expenditure $528M

500 110 450 $431M
$97M Gap

400 418 431 Gap Recurring Revenue 2010

350

300

2009

Note: One-time revenue sources not included in chart 4

2013 Budget Proposal

First step to eliminating gap was to reverse the spending trend
Annual Expenses $550M
$528.0M $496.0M

500

$483.0M

$479.9M

$477.8M*

$50.2M Difference

450

400

350

*= Proposed $477.8M expenditure does not include $13.4M appropriation to fund balance. Including fund balance contribution, the City is proposing a budget of $491.4M in 2013.

300
Delta to previous year
5

2009 +$28M

2010 -$32M

2011 -$13M

2013 Proposed 2012 Projected

-$3M

-$2M

2013 Budget Proposal

Second step was to reduce the reliance on onetime monies to balance the budget
Annual Revenue $500M
$474.4M $466.0M $484.1M
5

$483.6M

$491.4M

56

35

400 431

479 418

484

491

300

Recurring Revenue One-time 2009 2010 2011 2012* Projected 2013 Proposed

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2013 Budget Proposal

We are now living within our means
Historical Expense vs. Revenue $550M $528M 54 $496M 29 450 56 35 $484M $484M $491M Actual