Copyright Baton Rouge Advocate
Without question, New Orleans finds itself in a deep financial crisis. But it is a sad day when a city's troubles are compounded by a state government that should be helping its incoming mayor succeed. The city faces a $160-million deficit, as well as an immediate — and unexpected — cash flow emergency that could make it difficult to make payroll between now and January, when it gets some of its tax revenue. Outgoing Mayor LaToya Cantrell said the delay in some federal grant payouts put the city in a bind. To cover some of the shortfall, city officials sought permission from the Bond Commission to issue $125 million in short-term bonds. These bonds would require the city pay a higher interest rate than it does in most cases. But state officials, who must sign off on such a move, balked. Gov. Jeff Landry said the state should ask a court to appoint a fiscal administrator who would have broad power over the city's finances and operations. That move was rejected by New Orleans' officials, including City Council Vice President and Mayor-elect Helena Moreno, who said it would amount to "the state coming in and taking over the city." The city quickly withdrew its application to issue the bonds, and the relevant state committees, including the Bond Commission and the Fiscal Review Committee, canceled meetings earlier this week. New Orleans officials said they would use reserve funds and draw from other sources to cover the deficit. City Council President JP Morrell has said the city would consider furloughs, even for police and firefighters, as well as other cuts to services. The bond money, which the city said it would have repaid in January, would have helped keep city workers in their jobs, and approving it wouldn't have cost the state a dime. New Orleans does need to do a better job of keeping track of its finances. To that end, the council also asked Legislative Auditor Mike Waguespack and the city's inspector general to probe spending during Cantrell's second term. Clearly, the city's situation is dire. But we believe the approach taken by Landry and others is the wrong one, especially now, when Moreno and three new council members will take office in just over two months. New Orleans voters spoke decisively when they elected Moreno, and she has earned respect and cooperation, not animosity, from those at the state level. And recent examples show the value of working together for both parties. One need only look at the infrastructure improvements in the run-up to this year's Super Bowl and the positive effect that Troop Nola has had in helping the New Orleans Police Department fight crime. This productive relationship hasn't just been a boon to New Orleans; it's benefited the state as a whole. Indeed, Landry touted prior initiatives as a way to bolster Louisiana's vital tourism economy and other business sectors. As the governor himself said when he announced the Super Bowl investments, "the story of New Orleans is the story of Louisiana." Moreno, for her part, has signaled a willingness to be more collegial than her predecessor. We believe she deserves a chance to fix the situation she's inheriting. To kneecap her administration before it even takes office disrespects the citizens who overwhelmingly elected her in October. That's why we urge officials to tone down the rhetoric and work toward a solution that recognizes the problem but leaves New Orleans' elected leaders firmly in charge. Solving a budget crisis is a tough job; unnecessary bickering does not help.
