New Orleans City Council members met with state leaders in Baton Rouge Wednesday to address the city’s need to cover payroll.
According to mayor-elect Helena Moreno, the meeting was “productive.”
According to Moreno, the city council explained the resolutions passed to help address the financial crisis as well as quell fears.
Moreno said the legislative auditor is in place, working with the city to address its financial crisis, and according to Sen. Cameron Henry, will continue to do so moving forward.
Henry said that the city is expected to meet with the Bond Commission next week, and if everything goes to plan, the city could receive the green light for its $125 million loan.
Moreno said she and the council will continue to work out details regarding the loan in hopes of securing the money next week.
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.
Henry said he believed the meeting last week was put in place too quickly and that a majority of the communication regarding the loan was over the phone and in messages.
He believes the meeting today helped the state understand how New Orleans leaders are handling the budget and expected funds, and believes a fiscal administrator is not necessary at this time.
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:Bond Commission could greenlight New Orleans loan for payroll as early as next week
