New Orleans is $3M short to make employee payroll
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New Orleans City Council took steps Thursday to unlock the city's rainy day fund, saying about $3 million is needed to pay employees next week.
The big picture: Funds from a $125 million loan likely won't be ready in time to clear payroll, budget chair Joe Giarrusso says.
Follow the money: State leaders gave the city permission this week to seek $125 million in revenue anticipation bonds.
- The council is working with Chase Bank to issue the bonds. Mayor LaToya Cantrell also must sign off.
- The funds could be available by next Friday, Giarrusso says, but that's still too late to make Wednesday payroll.
- Plus, the city owes vendors about $40 to $50 million as of Thursday, he says.
Zoom in: Chief administrative officer Joe Threat says the top financial priority is to pay employees. After that, it's public safety and basic operations.
What we're watching: The city is looking at slowing and pausing projects through the end of the year as a cost-saving measure, Threat told council members Thursday. He didn't say which ones.
- Threat also implemented a new policy for overtime, which has been a primary cause of the $160 million deficit.
- All departments, including NOPD, have to submit a 90-day projection for overtime. Those numbers must be pre-approved, he says.
Between the lines: The state required additional oversight and transparency on expenditures before signing off on the loan. Go deeper.
What's next: Council members will vote Wednesday whether to unlock the $37 million rainy day fund.