The Breakdown: BGR report warns New Orleans may need stormwater fee amid drainage funding shortfall

By Devin Bartolotta

Source: WWL-TV

January 8, 2026

New Orleanians do not need a new report to know the city’s drainage system is in trouble. But a new analysis from the Bureau of Governmental Research puts a price tag on the scope of the problem – and it is steep.

According to BGR’s latest report, it could cost hundreds of millions of dollars, potentially as much as $800 million, to fully repair and upgrade New Orleans’ drainage system. The independent group notes that the Sewerage and Water Board has not provided a comprehensive estimate for the total cost of fixing and modernizing all of the city’s drainage infrastructure.

But it does highlights a major funding challenge. Drainage operations are largely paid for through property taxes, but BGR reports 37% of the total real estate value in New Orleans is exempt from those taxes, meaning a significant portion of properties still benefit from drainage services without contributing to their cost.

Compounding the issue, $54 million in annual drainage tax revenue is scheduled to expire in 2031. Without a replacement funding source, BGR warns the financial gap will grow dramatically.

The report estimates the city already faces a $23 million to $33 million annual shortfall for drainage needs. If the expiring taxes are not renewed or replaced, that gap could balloon to as much as $87 million per year.

To address the growing crisis, BGR points to a potential solution used by hundreds of cities nationwide: a stormwater fee. The report is intended to help guide the Sewerage and Water Board on how such a fee could be implemented in a fair and equitable way.