January 17, 2026 | From City of New Orleans
Mayor Helena Moreno Limits Necessary Furloughs Among Frontline Employees, Shifting Burden Away from Most Vulnerable Workers
NEW ORLEANS — This week, the Moreno Administration released details of the employee furloughs that were part of the comprehensive package devised by Moreno and her team to balance the budget after inheriting a more than $200m deficit.
Critically, Moreno ordered furloughs to be allocated primarily to the highest-compensated employees, while those making under $40,000 annually will actually be exempt from furloughs. This innovative approach places the burden on those that are most able to manage the difficult measures, while freeing those that are likely least able to absorb cuts from furloughs.
“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,” said Mayor Moreno. “Furloughs will run with the pay scale - if you make more, we’ll allocate more furlough. If you make less, we’ll allocate less, although way to those who make less than $40k who won’t be furloughed at all. These are difficult times, but I believe this is the fairest, most equitable way to get us through while we work to mend this broken budget.”
“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. We’re working everyday to find ways to lift this furlough and restore budget stability to the city and we won’t stop until we do,” said CAO Giarrusso.
Public safety and other emergency personnel are also exempt from furlough. CAO Giarrusso circulated furlough guidance to departments and agencies Friday afternoon, laying out Moreno’s sliding furlough scale and providing details for implementation. Furloughs begin in the February 15th payroll period. It is the Mayor’s top priority to end these furloughs as soon as possible through new revenues and further efficiencies in government.
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