New Orleans pulls bond application amid tensions with state

By: Robert Slavin

Excerpt from the article:

(July 10, 2026) The tensions started when state officials moved to eliminate nine judgeships, revoke funding for 10 assistant district attorneys and erase the position of criminal district court clerk in the city. 

When the city council tried to counter the clerk elimination, State Attorney General Liz Murrill threatened council members. A city-based grand jury recently indicted Murrill on 16 counts of malfeasance and intimidation.

Murrill successfully asked the state supreme court to intervene. State officials were reportedly upset by the indictment, which Moreno reportedly said she had nothing to do with.

While the indictment is an issue, said John Mousseau, Cumberland Advisors executive vice president and chief investment officer, "the bigger picture is the conflict between the city and the state. Big Democratic city versus Republican state house. We see this in other states."

While New Orleans needs the money, Mousseau said, the criticism is "the city is using long-term bonds to plug short-term funding gaps. There is going to need to be a meeting of the minds and this may be an overseeing agency to be involved with the city's financings. Clearly there needs to be some expense reduction to reflect the drop in city revenues that have been affected with a drop in tourism to the city."

Click here to read the full article on the Bond Buyer website. 

John R. Mousseau, CFA
Chief Investment Officer
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