The State Bond Commission has approved the City of New Orleans’ request to secure a $125 million loan to cover payroll costs into next January. The city must have a dedicated fund for the loan, and the Louisiana Legislative Auditor Mike Waguespack will oversee it. Waguespack took questions from Governor Jeff Landry.
Landry: “You are in control of the 125, meaning, making sure that the money is going to where -“
Waguespack: “Yes sir. I’m going to police that checkbook, and nothing moves until I send the letter to the city and the bank saying they can transfer.”
Waguespack was asked how did New Orleans get into this payroll crisis? Waguespack says improper budgeting practices, no oversight of overtime spending and the loss of federal COVID recovery dollars.
“The challenge is, rightsizing the city, eliminating programs that no longer have the federal funding attached to it. When you budget $57,000 for overtime and spend $50 million, which is in ’25, that’s your biggest issue,” Waguespack said.
Outgoing mayor LaToya Cantrell was not at Wednesday’s Bond Commission meeting. But Mayor-elect Helena Moreno was there and told the commission her incoming administration is working on improving operational efficiencies.
“Everything is being looked at, at this point. I do not have a cent to waste,” Moreno said.
