(The Center Square) − The New Orleans City Council on Monday unanimously adopted a $1.6 billion operating budget for 2026, closing a projected $222.4 million deficit and aiming to stabilize city finances after a year marked by a payroll scare and warnings of possible state intervention.

The spending plan, built around recommendations from Mayor-elect Helena Moreno and Budget Chair Joe Giarrusso, pairs roughly $150 million in departmental reductions with $74.5 million in new and previously untapped revenue. The Louisiana Legislative Auditor reviewed the revenue package at the council’s request. City officials say the estimates are intentionally conservative.