Mardi Gras krewes could soon be paying considerably more to parade through the streets of New Orleans.
A proposed overhaul of the city’s Carnival parade permit fees advanced out of committee Monday morning and will now head to the full New Orleans City Council for a vote.
The proposal would replace the existing permit structure with a three-tier system based on krewe size.
Under the plan, smaller krewes would pay $5,000 for a parade permit, mid-sized krewes would pay $7,500, and the city’s largest parading organizations would pay $10,000.
That’s a substantial jump from the current permit fees, which have generally ranged from $750 to $1,500.
Smaller Krewes Could Feel the Biggest Impact
Although smaller organizations would pay the lowest total permit fee under the proposal, they would actually face the highest cost when the fee is calculated on a per-rider basis.
For smaller krewes, the cost works out to approximately $14.44 per rider.
That distinction is important in Carnival, where smaller organizations don’t necessarily have the large membership bases available to spread additional expenses among hundreds—or even thousands—of riders.
Permit fees are also only one part of the increasingly expensive process of putting a parade on the street. Krewes must already account for floats, bands, marching groups, insurance, security and numerous other expenses before their first float ever rolls onto the route.
City Says Carnival Costs More Than It Generates
City officials say the proposed increases are part of an effort to address the financial burden New Orleans assumes each Carnival season.
According to figures presented during the discussion, the city spends approximately $10 million during Carnival while receiving slightly less than $7 million in associated tax revenue.
That leaves New Orleans with an estimated $3 million annual shortfall.
But the issue isn’t necessarily that Carnival fails to generate tax revenue. City Council President JP Morrell pointed instead to where much of that money ultimately goes.
“The lion’s share of that money goes to the state of Louisiana, which is kind of mystifying. And they comment on why New Orleans is so special. It’s because we keep giving you all our money. If it wasn’t for us, we’d have a lot more money to spend on things,” Morrell said.
The comments highlight a larger question surrounding the economics of Mardi Gras: while New Orleans bears many of the direct costs associated with hosting the celebration, a significant portion of the tax revenue generated by Carnival does not remain with the city.
What Happens Next?
Several people spoke against the proposed fee structure during the committee meeting, with concerns centered on the additional financial burden it could place on Carnival organizations.
The measure nevertheless advanced.
It will now go before the full New Orleans City Council, where it is expected to have enough support for passage.
If approved, the change would represent one of the more significant increases in the direct costs New Orleans krewes face simply to put their parades on the street.
For the city’s largest organizations, a $10,000 permit may represent a relatively small portion of an enormous parade budget. For smaller krewes operating with fewer riders and fewer resources, however, a $5,000 permit could be considerably more significant.
And with the cost of producing Mardi Gras parades already continuing to rise, the debate over who should pay for Carnival—and how those costs should be divided among the city, state, krewes and riders—is unlikely to end with this vote.
