NEW ORLEANS -- An unhappy New Orleans Mayor Ray Nagin predicted dire consequences for city services in the coming year and beyond after the city council passed a budget for 2009 that includes several million dollars in one-time governmental money being used for recurring expenses.

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Mayor Nagin addresses the council over the 2009 budget.

Nagin and Councilman Arnie Fielkow had a testy exchange that seemed to be tempered only by the lateness of the hour and the obvious fatigue of a 12-hour day spent debating where and how the budget should be cut.

The $1.1 billion budget, funded with plenty of government rebuilding money earmarked for recovery projects, was passed shortly before 10 p.m.

Nagin addressed the council afterward and stunned Fielkow with a tongue-lashing that included telling the council that the budget was probably ‘not implementable’ and giving them dire predictions for 2009 and beyond.

“We won’t be able to sustain the current level of services,” said Nagin. “2009 will be a challenge. 2010 will be a train wreck.”

Nagin said the council’s rejection of rolling forward the city’s millage, which would have increased property taxes on many residents, would make up for the projected $24 million shortfall in 2009 with one-time money. Nagin said that $24 million would have to be made up for in 2010, plus he predicted another $25 million on top of that.

Fielkow said he was taken aback by the mayor’s attack and chided him for not having members of his administration work with the council on solutions during the 30-day budget process.

“Had it not been an absolutely foolish proposal to put a property tax out there, we wouldn’t have had to use CDL and otherwise,” said Fielkow in response to Nagin’s criticism.

“I gave you a sound budget for you to consider and you rejected that,” countered Nagin, who predicted that crime cameras wouldn’t be replaced, that street lights might not get replaced and that the police force might not get to the level that has been recommended. Nagin also predicted the current budget would keep the city from being able to sell bonds to finance rebuilding projects.

He predicted it could seriously slow the recovery.

Council President Jackie Clarkson sought to allay public fears by assuring those at the meeting that the council had fully-funded the criminal justice system. The council did add about $1.5 million to the District Attorney's Office to prevent cuts in personnel for incoming DA Leon Cannizzaro.

On another hot button issue, the sanitation department, the council put about half of the $41 million in reserve pending further inquiry into contracts with the three companies that provide sanitation service.

The following are amendments to the 2009 budget, according to a city council press release:

Among the amendments made to the Budget; use the remaining $10 million in Community Disaster Loan money received from the Federal Government following Hurricane Katrina; eliminate duplication of services by not funding the Office of Municipal Investigation based on the Inspector General's assertion that the functions of OMI can be assumed by the Inspector General's Office.  

- The Council also voted to reduce the Operating Expenses of the Chief Administrative Office (CAO) by just over $1 million. The money, previously reserved for the crime camera program, will be transferred to the District Attorney's office. The District Attorney's office also received a budget increase. The increase included $1.2 million for personnel and $250,000 for diversionary programs.  

- Council Budget Chair Hedge-Morrell confirmed that a portion of the money will remain in the budget to repair the crime cameras ruined by Hurricane Gustav, stating that the transfer of money to the District Attorney's office is a more practical application of the money and will assist in making the city safer for all New Orleanians.

- The Public Defenders Office was funded by reducing the following CAO budget items: equipment maintenance by $500,000, fuel reduction costs not to affect First Responders by $800,000 and the budget consultant firm services by $500,000.

- Also appropriated was $97,000 to Juvenile Court for funding of law clerks.

- The Council, addressing the City's Department of Sanitation Budget, voted to require regular performance audits on the three solid waste contractors and reserve 50% ($20.5 million) of the City's Sanitation Department budget until the Council is satisfied that the solid waste contracts are in compliance.