New Orleans’ chief economist says the city faces a $43 million budget shortfall next year, as the national recession has taken a toll on the city’s bread-and-butter tourism industry and as payments on a botched pension fund deal come due. Economist Jerome Lomba called the financial picture “severe,” and one he says will require tough decisions to overcome.
Mayor Ray Nagin stopped short today of endorsing any specific plan, though he noted other governments have taken steps like going to four-day work weeks to mitigate costs. The city has relied on federal loans to balance its budget since Hurricane Katrina hit in 2005. The last $10 million in loans should be used next year — without it, the deficit would be $53 million.
