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NEW ORLEANS, LOUISIANA — The Essence Fest owes New Orleans vendors over $1 million, with a significant portion of that amount still outstanding from the 2025 event. This has raised concerns among local officials as they consider funding for the upcoming 2026 festival… The total outstanding balance includes: Ernest N. Morial Convention Center: $406,000 Local Production Company: Over $1 million (exact amount disputed) Public records and a statement from the Ernest N. Morial Convention Center show that as of last Tuesday, the festival owed $456,000. The center reported receiving a $50,000 payment on Wednesday, leaving roughly $406,000 still outstanding. Convention center billing records say event balances are supposed to be settled within 30 days, a deadline that has already come and gone for charges tied to the 2025 festival... Several New Orleans-area vendors, along with at least one production company, have told reporters that they have not received full payment for work connected to the 2025 event. An unnamed source cited in coverage said one production firm’s claim topped $1 million. Sundial Media Group, the festival owners’ parent company, has pushed back on that larger figure in statements to the media. Organizers say they are sorting through outstanding invoices at the same time they plan future programming, according to NOLA news.. Contract terms and municipal billing rules allow unpaid balances to trigger collection efforts and reputational fallout for event organizers, and public agencies that hand out grants generally expect recipients to stay in good standing. Lawmakers have already suggested they will factor the unresolved bills into decisions about future funding packages. Vendors, meanwhile, can lean on contract remedies if invoices sit unpaid for too long, turning a slow-pay situation into a more formal dispute…. The unpaid debts are complicating efforts to secure state funding for the upcoming 2026 festival. Local officials and state lawmakers are concerned that these financial issues could hinder the festival's ability to receive public support, which has historically been significant due to the festival's economic impact on New Orleans… The vendor payments issue could make securing the state money more difficult, according to state Rep. Jack McFarland, R-Jonesboro, the chairman of the House Appropriations Committee. He said Essence officials will have to come to Baton Rouge to explain the delayed payments if they want to secure more funds… “Any event that doesn’t pay its bills after we give it funding, that's a problem,” McFarland said. “I don’t care which event it is. That doesn’t matter.” In a prepared statement, Essence officials said the city of New Orleans and Essence Fest "are extremely dear to each other as partners," adding that last year's event generated an estimated $46.2 million in tax revenue…Story developing..