As the New Orleans City Government continues searching for ways to fill a $160 million shortfall, the Louisiana state treasurer says putting the city under the control of a fiscal administrator remains an option.
"What about the future? Is there going to be the need for more money?" Louisiana State Treasurer John Fleming asked on Friday, two days after the city of New Orleans withdrew its request for a loan from the Louisiana Bond Commission to cover that deficit.
Fleming says he, Governor Jeff Landry, and Attorney General Liz Murrill are all in agreement that the city needs a fiscal administrator to manage the city's money. He believes that if the state borrows money from the Bond Commission or anyone else to fill the budget gap, there will be a need for oversight to make sure New Orleans officials use that money responsibly.
Fleming says a fiscal administrator would guarantee for local residents and state leaders that those funds are used judiciously.
"Ultimately, the state and the taxpayers are going to be held accountable for any shortfall they have," Fleming said. "If there is any more money lent to the city by the bank or really any lender, then there needs to be oversight of this."
Fleming accused both Mayor LaToya Cantrell and members of the city council of allowing the budget situation to reach this point. Fleming said Cantrell failed to provide the proper disclosures to the city council. He also accused council members, including Mayor-elect Helena Moreno, or failing to provide proper oversight of the Cantrell Administration.
"How can we trust people who've been in power and need more money, but they didn't anticipate this (and) had no idea there was a problem?" Fleming asked.