City Council Members Condemn Decision as ‘Illegal’ and ‘Indefensible’
New Orleans Mayor LaToya Cantrell has reportedly decided against honoring a $20 million settlement agreement with the Orleans Parish School Board, drawing sharp criticism from City Council members.
The settlement, authorized by the City Council in November, was meant to help local schools recover from a projected $36 million deficit and resolve a longstanding lawsuit between the School Board and the city. Despite no objections from the Cantrell administration during negotiations, the mayor has now refused to issue the payments.
Council Blasts Administration’s Reversal
City Council members issued a statement Saturday condemning the decision, calling it both legally and morally wrong.
“The refusal to fund the settlement is illegal,” said Councilman Joe Giarrusso, who chairs the council’s budget committee. “The Council not only made this deal to help the children of New Orleans, but also expected it to be honored. The Administration’s refusal to help children is indefensible.”
Under the agreement, the city was to pay the first $10 million installment by the end of 2024, but that deadline has already passed.
Mayor Cites Financial Concerns Over Payout
City Attorney Donesia Turner indicated in an email to Giarrusso that Mayor Cantrell believes the $20 million settlement is too costly for the city.
“It is the Mayor, as the chief executive, who must decide whether to settle this litigation and, if so, the terms upon which it is to be settled,” Turner wrote.
She also noted that Cantrell remains committed to supporting the School Board but must balance the city’s financial needs. The mayor met with NOLA Public Schools district leaders last week to discuss alternative solutions.
Federal Funding Uncertainty Cited as a Factor
The administration has raised concerns that the city’s revenue remains uncertain, citing potential risks to federal funding due to executive orders issued by former President Donald Trump. Losing these funds could impact the city’s 2025 budget, further complicating any financial commitments.
City Chief Administrative Officer Gilbert Montaño, who played a key role in negotiating the settlement, is expected to meet with Giarrusso to assess the budget’s impact.
Councilman Threatens Budget Cuts in Response
Giarrusso is pushing back against the administration’s refusal, pointing out that Montaño publicly supported the deal and took part in settlement discussions. He vowed to introduce legislation to allocate the funds directly to the schools and warned of possible budget cuts to other city departments.
“It will also become necessary to review every department that is not revenue-generating to see if its existence is worthwhile,” Giarrusso wrote.
He also threatened to eliminate “unnecessary spending,” including travel expenses for the executive branch, as a response to the administration’s stance.
