11/03/2025
City Budget Deficit Caused by Corporate and Real Estate Tax Exemptions, Special Taxing Districts
Independent Peoples’ Tribunal Needed to Investigate the Budget Crisis, Expose the Truth
Pay City Workers, Use Tourism Taxes for Payroll and Social Programs
Working class residents of New Orleans are being conned and distracted by the city and state from the real issues behind the city budget crisis. While the city council and mayor sling mud at each other, both are responsible for a deficit in a city that is one of the most visited tourist destinations in the world.
Landry Should Shut Up – He Pimps a Poor State Out to Billionaires
First let’s clear up the issue of Landry and the state government. The city is chartered by the state and does not have the necessary independence to provide for its residents. The state forbids the city from raising the minimum wage for everyone, or enacting guaranteed sick days, fair working schedules, and other necessary reforms. The city government has never stood up to this, even though New Orleans is one of the prime economic levers of the state.
Landry sells Louisiana as a haven for low wage paying companies and further entices these corporations with tax write offs. But Louisiana has the highest infant and maternal mortality rates, ranks highest in child poverty, and lowest for worker opportunity, safety, and wages. To Landry, a “fiscally responsible” government is one that bends over backwards for the super-rich and faithfully carries out the anti-people MAGA agenda.
Like most US cities, New Orleans is first and foremost a cash cow for profitable companies. On behalf of their corporate overlords, the state government enforces low wages, racist inequality, lax environmental standards and hostility to unions and workers’ rights. The power dynamic is clearest in the case of the banks who make sure they get their tax-free interest payments (debt service) before residents get city services.
The state government controls much of the revenue that comes into the city and goes to non-elected entities such as the Convention Center, the Louisiana Stadium and Exposition District and the French Quarter Management District. They control a majority of the appointed, unelected board members and use tax money to enhance private corporate profits. Landry wants control of New Orleans to squeeze every drop of blood from residents to increase profits for a few of his cronies.
New Orleans City Government Hands Out Tax Exemptions Like Halloween Candy
Residents may love the Saints and Pelicans but most know little of the vaults of cash - our tax dollars - going to Gayle Benson. Benson receives all the money coming in from sales, but pays no sales tax, and uses the stadiums rent free, while public funds operate the Dome and the Smoothie King Center. For all the millions made, the team should belong to the city, not the Benson family, and its revenues should go into the city budget.
The state and city also hand out tax breaks galore to profiteering companies through the Industrial Tax Exemption Program (ITEP) and the city Economic Development Office.
Last year the city council voted to give Shell Oil (2024 profits were $75 billion) a $20 million tax exemption. This was just one part of a package of public funds that were used to set up a new neighborhood – the River District. This escapade by the Convention Center corporate board was given free prime public land and other public funds.
The state of Louisiana offers subsidies, tax exemptions, special land deals, lower electric rates, and the freedom to pollute to oil and gas and chemical companies and tech companies like Meta. Through carbon capture exemptions, they are handing out billions of dollars to these companies, depriving the residents of services and placing the tax burden on working and middle-class residents. Many of the corporations pay $0 in taxes.
In the city, around $200 million dollars is collected in tourism taxes. The vast majority of this sum bypasses the city budget and is handed over every year to unelected tourism corporations whose unelected commissions are made up of hotel and restaurant executives and real estate developers. But this can be changed. In 2019, due to mounting popular pressure, former mayor Cantrell negotiated a $28 million payout from the Convention Center’s account to Sewerage and Water Board. The current mayor’s office can be pressured to reallocate tourism tax dollars also.
The state and city have also authorized special taxing districts for richer neighborhoods who decide what funds are used for, e.g. the C*D, Garden District, Lakeview and Vieux Carre. They hire private police and vote to oppose funding for city projects in Black neighborhoods.
We have been told for decades that if we grant companies tax breaks, they will set up shop in Louisiana and bring good jobs and bring prosperity to workers and our families. But Louisiana and New Orleans are experiencing a crisis of unemployment and poverty. New Orleans is second in economic inequality between Black and white and has the highest rate of senior hunger in the country. Far from rolling in Super Bowl income, we are still paying for being the host.
These issues are covered up by New Orleans mayor’s office, city council, and state politicians all of whom receive money from the parties to the scam.
We need to establish an independent People’s Tribunal of Investigation into the City Budget and have a big public meeting exposing the real issues with the city budget deficit. It should be publicized not only on social media but by getting out flyers in neighborhoods and work sites. We should have a simple petition for people to sign: Repeal Shell Oil Tax Breaks and other Corporate Exemptions – Stop Bleeding the People, No City Layoffs.
We need our own independent investigation. We should mobilize and link the city workers with all the workers of New Orleans to fight for a people’s program for the city.
