Mitch Landrieu might've improperly diverted millions in New Orleans property taxes

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Mayor Mitch Landrieu's administration may have improperly diverted millions of dollars in property taxes meant for schools, flood protection, drainage, public safety and neighborhood improvements to several state retirement systems.

That’s according to a lawyer for the Downtown Development District and documents filed in its lawsuit seeking a refund of about $400,000.

According to state Supreme Court rulings and an Attorney General’s Office opinion, local governments are not allowed to use property taxes for expenses not approved by voters. However, from at least 2014 to 2016, the city used between $3.7 million and $4.2 million of those taxes to contribute to state pension funds.

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court filings show that the city took money from a number of special taxes — including those dedicated to the Orleans Levee District, the Orleans Parish School Board, the police and fire departments and Sewerage & Water Board drainage work — from at least 2014 to 2016.

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