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Louisiana Approves $125 Million Bridge Loan to Keep New Orleans Payroll on Track

The approval comes with tight controls that put the legislative auditor in charge of authorizing payroll withdrawals.

Overview

  • The State Bond Commission cleared the city to issue short‑term bonds to cover year‑end pay for nearly 5,000 municipal employees.
  • A state Fiscal Review Committee took no action on appointing a fiscal administrator, preserving local control for now.
  • All proceeds will flow into a segregated payroll fund with no withdrawals allowed without written concurrence from Legislative Auditor Mike Waguespack and weekly public reviews.
  • Mayor‑elect Helena Moreno pledged quick repayment, extensive cost cutting, and a rebuilt 2026 budget with added reporting to state officials.
  • The city must finalize bank financing to fund the account, with officials reporting JPMorgan as the lender at roughly a 3.5% rate.