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Nagin wants cuts, fees for $68 million budget hole

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by Scott Satchfield / Eyewitness News

Posted on October 30, 2009 at 12:10 PM

Updated Friday, Oct 30 at 8:52 PM

NEW ORLEANS -- New Orleans Mayor Ray Nagin says his city is facing the second largest deficit its ever faced, about $68 million, and he's proposing steps including 12-day furloughs for city workers, more stringent parking enforcement and fee collections and cutting the mayor's office and City Council budgets to address it. 

Nagin stressed, city halls across the nation are cash-strapped.

"88 percent, almost 90 percent of every major city in America is reporting very difficult times, so we are not unique in the challenges we have," he said.

But the projected shortfall in the New Orleans budget is severe. It's the second largest deficit in the city's history.

Nagin's budget proposals offer several remedies, including: maintaining the city's hiring freeze, implementing a 12-day furlough - days when city employees will not be paid and city hall will be closed, and a 10 percent across the board cut for city departments.

Councilwoman Shelley Midura spoke out against that last idea, saying such a blanket cut could hurt some departments more than others.

But Nagin said his budget prioritizes against layoffs and creating an impact on public safety.

"We wanna try to minimize any reduction in critical city services because our population continues to grow substantially," Nagin said.

New Orleans Police Superintendent Warren Riley said furlough days would not affect officers on the street or first responders.

While hundreds of civilian NOPD staffers could be forced to take time off without pay, Riley calls looming cuts to his department, 'manageable.'

"During this very difficult time nationally, where places like San Diego are laying off 12 percent of their law enforcement personnel, and others are going to a four-day work week, we're very, very fortunate," Riley said.

Still, the NOPD and other departments likely face big challenges and changes in the coming months.

Nagin says some other steps are being taken to help the situation, including adding 200 new parking meters, and extending their operation to 13 hours per day, six days each week.

His budget also recommends changes to the city’s health insurance plans, by adding a $20 increase in bi-weekly contributions.       

Council members must approve a balanced budget by December 1.

After spelling things out for council members Friday morning, Nagin joked about his own future.

"This is the last time you're gonna see me up here presenting a budget. I'll be at home, eating popcorn, watching you guys do this, and criticizing the next mayor, saying he shouldn't have said that and he shouldn't have done that," Nagin said.

Nagin offered a warning though. If the city doesn't find recurring money streams, he says the budget problems could continue for five years, leading to possible higher fees for residents, cuts to recreation, and worse, a reduction in public safety.

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