New Orleans schools secure $36M funding deal after bitter financial dispute
The Orleans Parish School Board (OPSB) has approved a major funding settlement with the city in a 6-1 vote. The agreement aims to resolve long-standing financial disputes and secure future payments for schools. One board member opposed the deal, arguing it fell short of what was originally owed.
The settlement follows months of negotiations to address a $220 million deficit identified after Mayor Helena Moreno took office in January. Under the new terms, the city will stop diverting school funds to cover pension obligations—a practice that had drawn legal challenges.
The deal includes a $6 million payment to the NOLA Public Schools district by the end of 2027. After that, the city will pay $2 million annually for the next 15 years, totalling $36 million. Additionally, OPSB will receive $4 million each year from Caesar’s Casino New Orleans starting in 2030. To reduce costs, the city will lower sales tax collection fees from 1.6% to 1.5%, saving an estimated $150 per student yearly. Property tax collection fees will be eliminated entirely, a change district lawyers had argued was legally required. Despite broad support, board member KaTrina Chantelle Griffin voted against the agreement. She claimed it did not fully restore what the school board was owed under the original lawsuit. The settlement still requires approval from the City Council and a judge’s signature before taking effect.
The agreement marks a step toward resolving financial tensions between the city and the school board. If finalised, it will provide steady funding while cutting administrative costs for the district. The next steps depend on the City Council’s vote and judicial review.
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