New Orleans Mayor LaToya Cantrell seems to have chosen not to proceed with a $20 million settlement agreement that the City Council had sanctioned with the Orleans Parish School Board, council members revealed on Saturday.
The purpose of the agreement was to address a projected $36 million deficit facing the city’s schools and to resolve a lengthy legal battle initiated by the School Board against the city. Chief Administrative Officer Gilbert Montaño participated in the discussions regarding the settlement, and the council gave its approval to the agreement late last November without any objections from the Cantrell administration.
In a public statement made on Saturday, council members criticized the administration’s stance, asserting that the city is both legally and morally bound to honor this agreement. “The refusal to fund the settlement is illegal,” said Councilman Joe Giarrusso, who leads 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 support the children is indefensible.”
According to the agreement, the $20 million was to be disbursed in two installments, with the first payment due before the conclusion of 2024. However, as reported last month, the city failed to meet this timeline.
In an email exchange dated Friday with Giarrusso, which has been obtained by Verite News, City Attorney Donesia Turner suggested that Mayor Cantrell considers the settlement to be overly expensive for the city. Recent executive orders from President Donald Trump have created uncertainty regarding federal funding, potentially jeopardizing hundreds of millions of dollars earmarked in the city budget for 2025. Giarrusso and Montaño are expected to convene to reevaluate the budget for 2025 in light of these concerns.
Additionally, Turner stated that the council’s vote did not legally compel the city to settle the matter. “It is the Mayor, as the chief executive, who must decide whether to settle this litigation and under what terms,” Turner explained. “The Mayor acknowledges the services that the School Board offers and has a history of supporting school children and the School Board over the years. She is also aware that the City of New Orleans provides essential services that necessitate considerable funding.”
Turner mentioned that Mayor Cantrell had a meeting with leaders from the NOLA Public Schools district on Thursday “to discuss how to assist them with their financial crisis.” She noted that the Mayor is aiming for a settlement that is “financially feasible for the City.” (On Saturday evening, a statement from Cantrell’s office echoed the language from Turner’s email.)
Turner’s email was in response to Giarrusso’s inquiry concerning the outstanding $10 million payment. Giarrusso countered, emphasizing that the administration was involved in formulating the agreement, which included Montaño’s participation in a news conference to announce the deal.
Giarrusso indicated his intention to propose a measure to allocate the necessary funds for the schools. He further cautioned that he may need to reduce budgets within the executive branch to eliminate “unnecessary spending,” including travel expenses. “It’s also imperative to review every department that does not generate revenue to determine its viability,” he added.
