Talk of a state takeover of New Orleans' finances has been put on hold, after the city Wednesday withdrew its request for a $125 million loan to cover payroll.
New Orleans City Council President J.P. Morrell says they made the decision to withdraw the request after reaching an "impasse" with the state. Louisiana Gov. Jeff Landry was calling for the bond commission to reject the city's $125 million request, and for the appointment of a fiscal administrator to oversee the city's finances.
Morrell says the city instead will "make cuts to the budget accordingly."
He said that may include furloughs of city employees, but also warned that the city cannot "furlough its way out of" its fiscal troubles.
"A day of furloughing the entire city is a million dollars," said Morrell. "So even if we furloughed everyone through the end of the year, it would not serve the deficit. It's only a portion of it."
City council budget committee chairman Joe Giarrusso says there are still some accounts payable the city is waiting on.
"We had a meeting today with the Sewerage and Water Board where they owe the city $9 million," said Giarrusso. "The expectation is we would get that money by the end of November."
Giarrusso said that was not all -- he said there is money for infrastructure work that the Governor's Office of Homeland Security and Emergency Preparedness owes them for, and there are unspent federal American Rescue Plan Act funds that could be tapped, as well as the city's rainy day fund.
