The city of New Orleans and its chief financial officer are urging a judge to reverse a recent ruling requiring the city to pay $10 million to the Orleans Parish School Board (OPSB), according to a recent report in WDSU. The request follows a court decision that found Mayor LaToya Cantrell obligated to make the payment despite her withdrawal from the funding agreement.
According to court documents, city officials argue that the ruling is both unlawful and unconstitutional. While the judge did not uphold the original settlement deal as valid, the court determined that the $10 million payment was legally mandated since it was formally approved in the city’s budget and signed off by Cantrell.
The city contends in its appeal that funds allocated within the budget should not automatically require disbursement. However, legal precedent and the judge’s ruling suggest otherwise.
Efforts to obtain a statement from Mayor Cantrell’s office have so far been unsuccessful. Meanwhile, New Orleans City Council Budget Chair Joe Giarrusso acknowledged the complexity of the situation, stating:
“The Council passed and the Mayor approved $10 million for OPSB. Even the trial court agreed that portion of the money is due to kids. It is a little strange that the CFO is challenging the Mayor’s actions, but I guess that is where we are.”
The city now faces a 15-day deadline to fulfill the payment order. Whether the judge will reconsider the ruling remains uncertain. The case underscores ongoing tensions between the city’s leadership and its financial obligations, with implications for both governance and education funding in New Orleans.
Last October, Shine My Crown reported that a convicted tax fraudster and his building inspection company were indicted on federal corruption charges, which directly implicated Cantrell in a conspiracy, according to a WWLTV report. Businessman Randy Farrell faced a 25-count indictment, including charges of fraud and conspiracy to commit fraud with “Public Official 1,” who is clearly referenced as Cantrell, though her name was not explicitly mentioned. According to former federal prosecutor Matt Chester, that effectively made Cantrell an unindicted co-conspirator.
Farrell’s attorney, Rick Simmons, issued a statement denying any wrongdoing by Farrell or his company, IECI & Associates, accusing federal prosecutors of misusing information Farrell provided after his earlier guilty plea for tax fraud.
