Louisiana Governor Landry Urges Rejection of New Orleans $125M Loan Amid Budget Crisis

Louisiana Governor Jeff Landry has strongly opposed New Orleans' request to borrow $125 million to address a budget crisis that threatens city employee payrolls, urging Republican lawmakers to deny the loan. Landry emphasized that the state has achieved fiscal stability through tax reforms and economic revitalization, and insisted that New Orleans must resolve its financial challenges without accruing more debt. He has called for an emergency meeting of the Fiscal Review Committee, involving the State Treasurer, Attorney General Liz Murrill, and the Legislative Auditor, to thoroughly examine the city's finances and consider appointing a fiscal administrator if necessary. Political analysts view Landry's opposition as part of an ongoing effort to expand state control over the city, and a possible political maneuver amid his sagging approval ratings. The city's estimated $160 million budget deficit, with significant overtime pay costs, underscores the urgency of the financial crisis. The outcome of the State Bond Commission's decision on the loan request remains uncertain, raising concerns about how New Orleans will meet payroll if the loan is denied.