(The Center Square) − The State Bond Commission said Friday it is preparing to convene an emergency meeting next week to consider New Orleans’ request for a $125 million cash-flow loan, a step city leaders say is necessary to keep payroll and vendor payments going through year’s end.
“The State Bond Commission is positioned to assist,” the commission told The Center Square in a statement. “We have a preliminary plan to hold an emergency meeting of the State Bond Commission next week. Since there is an ongoing Special Session, we are contacting our members to determine the best time to hold the meeting.”
The development follows the New Orleans City Council’s unanimous Thursday vote authorizing the administration to apply for the short-term borrowing, described by council leaders as a last-resort “payday loan.”
City Hall is facing a $160 million budget gap, driven in part by overtime spending that exceeded its line-item by more than a thousand-fold.
On Tuesday, Chief Administrative Officer Joe Threat told the council the city is also waiting on roughly $120 million tied to a FEMA grant extension requested in August. Without the extension, he said, the city won’t have cash to meet payroll.
