Gov. Jeff Landry is urging lawmakers to reject the City of New Orleans’ request for a $125 million loan from the state.

The city’s deepening financial crisis has raised the possibility that officials may go unpaid. Last week, Chief Administrative Officer Joe Threat alerted city leaders that the cash flow problem could prevent payroll from being met for the rest of the year. In turn, city council unanimously passed a resolution to apply for a $125 million state bond – a temporary solution.

In a post to X Tuesday morning though, Landry said “It’s imperative that the [city] address its financial matter promptly. I urge [Louisiana House Republican Legislative Delegation] and [Louisiana Senate Republicans] to deny the city’s request to accumulate debt o the backs of its citizens.”

Landry says he and the legislature have worked “diligently” to establish financial stability for the state. Landry is also calling for an emergency meeting of the Fiscal Review Committee and if necessary, the appointment of a fiscal administrator. Attorney General Liz Murrill confirmed the meeting will take place at 4:30 p.m. Wednesday.

Murrill released a statement last week, saying her office has authority to step into a municipality’s finances if they’re unable to manage their own affairs.

“We have some authority to kind of impose a fiscal administration on municipalities that can’t manage their financial affairs,” Murrill said.

WWL Louisiana has not confirmed whether or not she is considering taking the action.

Should the bond request be denied, it’s unclear how the city will be able to make payroll.