New Orleans Faces Financial Struggles: What You Need to Know New Orleans, a city known for its unique charm, is facing serious financial trouble. In 2023, the city had a $2.1 billion shortfall, meaning the city owes more money than it has to cover its bills. If the city were to pay off this debt by taxing its residents, each taxpayer would face an $18,300 burden. This has earned New Orleans a "D" grade for its finances and has put it on the "Sinkhole City" list in Truth in Accounting's latest report. What Is Taxpayer Burden? The Taxpayer Burden shows how much each taxpayer would need to contribute if the city had to pay off all of its debts today. So, while residents don’t have to pay this amount directly, it reflects the city’s overall financial situation. In New Orleans' case, that burden is $18,300 per taxpayer. According to Truth in Accounting’s grading system, cities with a Taxpayer Burden between $5,000 and ...