Moreno warns state could punish New Orleans
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State leaders may "target the city's finances" in retaliation for an Orleans Parish grand jury's indictment of Louisiana Attorney General Liz Murrill, Mayor Helena Moreno warned Thursday.
Why it matters: She withdrew the city's loan request pending before the State Bond Commission, saying "denial was imminent."
The big picture: Murrill sits on the board with Gov. Jeff Landry, state Senate President Cameron Henry and State House Speaker Phillip DeVillier.
- Landry, Henry and DeVillier put out statements supporting the AG.
- Murrill has been outspoken about the indictment, calling it a "political witch hunt."
- She faces intimidation and malfeasance charges related to letters she sent to Moreno, five New Orleans City Council members and two more city leaders over a disagreement about who should serve as clerk of court.
What she's saying: "Any state leader seeking to defund New Orleans to punish, weaken or destroy it must face the harsh truth and consequences that, ultimately, doing so is self-harm to Louisiana," Moreno said in a statement.
- City Council members put out a joint statement supporting the mayor's decision to withdraw the application.
- Landry responded in a letter, questioning Moreno's financial decisions and saying he has concerns about "management and transparency."
- Then, Moreno replied Thursday night to Landry, asking to meet with him to go through the city's finances line by line.
Zoom in: The city was seeking permission from the commission to sell $110 million in bonds while officials claw their way out of an inherited financial crisis.
- Murrill, in a statement to Axios late Thursday, called the request "dead on arrival," based on the interest costs.
- The commission approved a loan for the city last year. Moreno said she's "identified a path" to get through the year without the proposed loan but didn't release details, noting "it won't be easy."
- Moreno said she's also hearing that state leaders may target the casino lease deal and other financial arrangements.
- Landry last month vetoed $33 million in state earmarks for projects in New Orleans.
What's next: The Louisiana Supreme Court tapped retired judge Robert Chaisson on Thursday to oversee Murrill's case after all 12 of Orleans Parish's criminal court judges recused themselves, WWL reports.
- The court previously stayed the indictment and recalled the warrant for Murrill's arrest, AP reports.
- Landry says he'll pardon Murrill, but legal experts tell the Times-Picayune the process may be more complicated than advertised.
Go deeper: Moreno's full statement