by Kevin Caruso

October 4, 2005

New Orleans will lay off 3,000 city workers because of a steep drop in revenue after Hurricane Katrina.

Mayor Nagin has been desperately trying to obtain financing, but has been able to do so.

“We've talked to local banks and other financial institutions, and we are just not able to put together the financing necessary to continue to maintain our city hall staffing at its current levels,” said Nagin.

The mayor said that the city should be able to reduce its payroll by $5 million to $8 million, bringing the total monthly payroll from $20 million to between $12 million and $15 million.

The workers to be layed off are “nonessential” workers, added Nagin. All public safety and sanitation employees will keep their jobs.