New Orleans officials set to meet with state about possible bond revenues

NEW ORLEANS (WGNO) — On Wednesday, the New Orleans City Council will meet with various state leaders to try and secure a $125 million bond from the state in order to cover payroll for the rest of the year.

Last week, the council pulled the request after Attorney General Liz Murrill said the city must hire a fiscal administrator to handle its finances.

“We want to talk to the state. We understand they have concerns about how we got here and what needs to happen in the future. We want to help address those concerns, but I think the fiscal administrator is just off the table for us,” said Councilman Joe Giarusso.

Giarrusso believes meeting face to face with state leaders will allow them the opportunity to show the guardrails they’ve put in place to prevent future deficits.

“All of us being in a room together helps facilitate that dialogue, which I think is really important. And to get to a place where we get more comfortable with what outcome is and also what those guardrails should look like,” said Giarrusso.

Political analyst Jeff Crouere says they should look at all measures, but he believes the key will be how Mayor-Elect Helena Moreno and the council plan to try and erase the deficit.

“You’ve got a former council member coming in as the mayor, and I’m, you know, hoping that there’s going to be a better working relationship there, more transparency, more communication about where the money’s going and the budgeting needs to be realistic,” said Crouere.

“I think you have good people on both sides there. Want to work something out. Get an agreement, then hopefully have better monitoring so that this kind of thing actually never happens again,” said Crouere.

Giarrusso says the council is going in with the hopes of securing the loan. But if the loan is not approved, councilmembers will have to tap into other funds.

According to Murrill and Press Secretary Lester Duhé, the Mayor-Elect is working with legislative leadership and the Louisiana Legislative Auditor to establish a plan that they hope would satisfy the Bond Commission, permit access to bridge funding, and address long-term fiscal stability in New Orleans. The Attorney General will not be present because she is traveling but has encouraged the discussions.

In a statement, Murrill said:

“I encourage the talks and support the direction they appear to be moving in. I support a path that results in transparent, realistic, stable budgeting for New Orleans.”

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