The New Orleans City Council has approved a measure asking the Louisiana State Bond Commission for a $125 million bailout to help cover the city's shortfall. While the council unanimously approved the measure, some members voted "yes" while holding their noses.
During Thursday's city council meeting, Councilman Oliver Thomas expressed regret that the city even needs to seek a revenue anticipation loan from the state.
"Drastic times call for drastic measures, but I wish we would have known some time ago that it was a drastic time," Thomas said.
Council member Leslie Harris says the only reason she voted to approve the bond request is because of testimony she heard during Wednesday's emergency budget meeting.
"The only reason I'm supporting this is because of assurances yesterday that the administration, specifically, CAO Joe Threat, will work closely with you, Councilman Giarrusso to ensure that we are properly spending and that our people who work for city government are getting paid--and our vendors--so we can keep the business of government moving forward," Harris said. "That's why I'm reluctantly supporting it."
City councilman Eugene Green echoed comments made by other council members, who said the Cantrell Administration failed the council by keeping them in the dark about the status of the city's financial situation.
"We were not given the respect as a body that we should have been given knowing some of the facts that exist right now," Green said.
However, Green added that the council could have done more to prevent this mess.
"We didn't roll forward our millage, which cost the ability to make certain things happen in our city," Green said.
If the State Bond Commission approves the city's request, the city would pay back the debt through property tax revenue.