New Orleans

Bankrupt New Orleans

The seven leading candidates in the upcoming (April 22nd) New Orleans Mayoral election were on display last night in a nationally televised debate notable for its lack of substance. The city is on the verge of bankruptcy, but the fiscal crunch was addressed only indirectly. Part of the city’s problem in borrowing money from private lenders, or encouraging the federal government to send more funds, is the widespread understanding that local politics is deeply corrupt. But only one marginal candidate chose to take up the issue. The incumbent Ray Nagin, once known as as Ray Reagan for his ties to local business, was never pressed by the other two top candidates, businessman Ron Forman, a Republican turned Democrat, and Lieutenant Governer Mitch Landrieu, a member of Louisiana’s most prominent political family. All three talked blandly about how New Orleans would return to its former “glory.”

(New Orleans) Government could go broke in a month
Sunday, April 16, 2006
It's not hard to understand why …. banks are skittish about doing business with New Orleans, which needs the money to pay for police, firefighters and other basic functions. Although Mayor Ray Nagin likes to talk about how New Orleans is bouncing back more quickly than he thought it would last fall, his government will run out of money next month without another major infusion of cash….. Though city officials have already slashed spending by a third and laid off 2,400 workers, New Orleans' current population of around 200,000 simply can't pay for the services -- and carry the accumulated debt -- of a city that was more than twice as large before Hurricane Katrina. …
4/17/6 Times Picayune: Mayoral candidates joust in front of national audience