The New Orleans City Council says it has received word from the Cantrell administration' chief administrative officer that the city may not be able to meet its payroll obligations for the rest of the year.
"CAO Joe Threat alerted Budget Chair Joe Giarrusso and Council Vice-President Helena Moreno on Tuesday morning that cash-flow issues have now become even more severe than originally anticipated," reads a city council news release. "Councilmembers Giarrusso and Moreno believe the administration must explain to the public and the full Council why this was just discovered and the reasons for the additional shortfall."
The council has called an emergency meeting for Wednesday afternoon at 3 p.m.