New Orleans averts state-led takeover of city operations ahead of Bond Commission vote

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New Orleans averted a state-led takeover of city operations — at least for now — after a state panel opted not to recommend the installation of a fiscal administrator following assurances from Mayor-elect Helena Moreno that measures are being taken to right the city's finances.

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The state Fiscal Review Committee — made up of Legislative Auditor Mike Waguespack, Treasurer John Fleming and Attorney General Liz Murrill — took no action at a meeting Wednesday in Baton Rouge.

The committee is tasked with reviewing the fiscal stability of municipalities, and when necessary, recommending that a court appoint an administrator to oversee the city's operations.

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The meeting came ahead of a crucial vote of the State Bond Commission also scheduled on Wednesday on the city's request to sell $125 million in short-term bonds to ease a cash crunch that has threatened the city's ability to make payroll and pay its vendors.

Waguespack said New Orleans' inability to pay its bills technically qualifies it for being put under a fiscal administrator.

Still, New Orleans' leaders reached an agreement with state officials last week giving Waguespack veto power over how the bond revenues are spent and oversight of city spending to avoid the state-led takeover.

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