New Orleans City Council members are traveling to Baton Rouge on Wednesday to meet with state leaders as they frantically work to find funding for payroll.
The meeting is scheduled for 2 p.m.
Louisiana Attorney General Liz Murrill’s Office said mayor-elect Helena Moreno is working with lawmakers and the legislative auditor to create a plan to satisfy the bond commission.
This comes after Moreno and other council members canceled a meeting last week due to the state’s push for a fiscal administrator indefinitely.
Mayor-elect Helena Moreno, who was joined by other city council members, said that was a deal breaker for leaders in New Orleans, and extreme cuts are now on the table, including cuts to all overtime.
This could also lead to possible layoffs and temporary closures of some departments.
New Orleans city leaders currently have enough funding to ensure payroll through Nov. 12 for approximately 5,000 city employees.
If necessary, the city will dip into its rainy day fund to cover payroll through December.
There are questions surrounding $45 million in unspent American Rescue Plan Act funds, which council leaders are trying to figure out if they can use to make payroll for the rest of the year.
They are also waiting to learn if they can get reimbursed from the Federal Emergency Management Agency, which owes the city between $30 million and $50 million.
This money would be used to cover payroll for the roughly 5,000 city employees through the end of the year. It does not include the $160 million deficit, which was driven largely by unapproved overtime.
READ MORE:New Orleans leaders set to meet with state officials amid financial crisis
