Should the State Bail-Out New Orleans’ Water and Sewer Debt? [VIDEO]
101.7 / 710 KEEL's Robert J Wright and Erin McCarty talk about New Orleans Mayor LaToya Cantrell's attempts to put together a bailout for her city's Sewer and Water Board, then tie it to the funding of Shreveport's own federally mandated, multi-million dollar water and sewer project.
"New Orleans Mayor LaToya Cantrell got angry at reports about the embattled Sewerage & Water Board’s finances. The agency admitted that it has $134 million in unpaid water bills over the past 3 years under questioning by the New Orleans City Council. That is 20% of the total money billed by the agency.
In order to stabilize the S&WB’s finances, Cantrell has been trying to put together a bailout from the state. The deal she is trying to structure would see a one-time infusion of money and recurring revenue of tens of millions a year from the hospitality industry.
The deal she is seeking would include a one-time cash infusion of $75 million and up to $40 million a year in money from entities like the Ernest N. Morial Convention Center, which would be combined with other funds raised by the S&WB."