Landry accuses New Orleans of treating state as ‘ATM’

“Your letter confirms what has been the customary practice of the City; to utilize the State as an ATM to balance the City’s budget, when more fiscally responsible means are available,” Landry wrote on X.

“Please remember the State and its citizens are not an ATM on Bourbon Street!” he added. “No one has done more for the city of New Orleans than me!”

Landry also used the post to take a swipe at the recent Orleans Parish indictment of Attorney General Liz Murrill.

“I understand your desire not to trade public letters, as that seems to be an indictable offense in the City of New Orleans,” Landry wrote to Moreno.

The Friday post marked a sharper turn in an increasingly public fight over the city’s finances.

Landry began the exchange Thursday with a letter asking Moreno to explain how New Orleans could withdraw its proposed $110 million bond issue after previously arguing that the money was urgently needed.

The city had sought permission from the State Bond Commission to issue long-term Taxable Limited Tax Bonds, backed by revenue from a property tax that does not expire until 2046. New Orleans withdrew the request after it became apparent that the commission was unlikely to approve it.

Landry questioned whether the city still needed the money and accused previous city leaders of weakening New Orleans’ finances through short-term decisions.

He pointed to a $125 million Revenue Anticipation Note issued in November 2025 and criticized the city’s decision to sell future casino lease payments for an immediate lump sum. Landry said that deal cost New Orleans roughly $50 million in future revenue and amounted to a “payday loan” taken out by a municipality.

“The City’s ongoing inability to meet basic cash-flow requirements is unacceptable and raises serious concerns about management and transparency,” Landry wrote.

Moreno responded Thursday that the city’s financial problem had not disappeared. Rather, she said her administration developed an alternative plan after concluding that the Bond Commission would reject the borrowing request.

“That does not mean the underlying cash-flow challenge disappeared,” Moreno wrote. “It means the City must now absorb the financial impact in other ways.”

Moreno said the proposed financing was intended to spread painful budget decisions over several years while allowing the city to reduce spending without abruptly disrupting public safety, essential services or the municipal workforce.

Without the financing, she said the city will defer tens of millions of dollars in projects, make an additional $20 million in midyear reductions and continue furloughs and other temporary cost-saving measures.

“This path is achievable, but it is unquestionably more painful,” Moreno wrote.

The mayor also defended the city’s decision to monetize the casino lease, saying the transaction restored reserves after years of financial deterioration and allowed New Orleans to enter hurricane season with roughly $125 million in emergency reserves.

Moreno said $100 million from the transaction was invested in the Louisiana Asset Management Pool and was earning approximately 3.72% interest, helping offset some of the cost of receiving the lease payments early.