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New Orleans Sets Wednesday Talks With State as Cash Crunch Threatens Payroll

City officials hold roughly two weeks of cash on hand, prompting a push for bridge financing without ceding control to a state fiscal administrator.

Overview

  • City leaders plan to meet Wednesday in Baton Rouge to try to revive a $125 million bridge loan, with Council President JP Morrell, Mayor‑elect Helena Moreno and Councilmember Joe Giarrusso expected to attend.
  • The city reports about $25 million available, roughly enough to cover two weeks of pay for around 5,000 employees.
  • New Orleans withdrew its loan request after Attorney General Liz Murrill conditioned approval on installing a state fiscal administrator, a step local officials reject.
  • The New Orleans Building Corporation approved a $6.5 million transfer to help with near‑term needs, and officials are weighing rainy‑day funds, stepped‑up collections, delayed contracts and a possible reallocation of roughly $45 million in undrawn ARPA funds.
  • Leaders warn immediate austerity is possible, including canceling overtime across departments with potential layoffs and temporary closures if new financing or revenues do not materialize.