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New Orleans Withdraws $125 Million Payroll Loan Request as State Oversight Fight Escalates

State conditions requiring an indefinite fiscal administrator prompted the withdrawal.

Overview

  • The City Council pulled its request for Bond Commission approval after Attorney General Liz Murrill conditioned the loan on installing a fiscal administrator with no set end date.
  • The scheduled Bond Commission vote and a Fiscal Review Committee meeting were canceled, and an emergency meeting with state lawmakers is set for Nov. 5 to seek payroll funding.
  • City leaders warned paychecks after Friday are uncertain and said extreme cost controls are being prepared, including halting overtime, potential layoffs and temporary department closures.
  • Earlier Wednesday, the council sought a legislative audit of 2022–2025 finances, froze nonessential purchases, proposed an emergency payroll fund and advanced a charter change to limit mayoral transfers.
  • Officials continue to confront a roughly $160–$166 million deficit and said they will tap remaining federal dollars and other sources as short-term bridges.