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New Orleans Cash Squeeze Deepens With Loan Payments Due, City Plans Summer Borrowing

State officials maintain guardrails as the city prepares to meet near-term debt deadlines with scant reserves.

Overview

  • The chief administrative officer called the budget outlook dire, reporting about $27.5 million in cash on hand against roughly $65 million in monthly operating and personnel costs.
  • Officials said the city made an initial repayment on the $125 million emergency loan this month and will meet another payment next week, with a $55 million installment due next month.
  • As of Feb. 20, the city had collected 29% of projected property taxes and 10% of sales taxes, figures the administration expects to rise after the Feb. 28 property tax deadline and post–Mardi Gras receipts.
  • Louisiana Treasurer John Fleming said the state embedded the legislative auditor to monitor spending and warned a temporary fiscal administration could follow if insolvency occurs.
  • Layoffs have been avoided through furloughs as leaders pursue revenue and savings, including stepped-up collections, selling city vehicles for about $65,000, cutting unused Webex licenses, and moving to hire an NOPD controller.