Well, with the price of oil near $60/barrel, Louisiana is flush with cash at the moment. Every budget estimating conference finds more money each time they issue their report. Paying the Saints is a matter of priority, and right now, they are near the bottom, unfortunately. As for the city, hotel/motel taxes have been hurt by blocks of rooms being purchased at drastically reduced rates by websites such as Hotels.com. However, Mayor Nagin has run the city like a business, and has New Orleans on sound financial ground. Before he took office, the previous mayor had let the state of financial matters get out of control. When Mayor Nagin took office, the city only had 12 hours of cash reserves on hand to run city services. Now, it's close to a month, which is the norm. A little known fact about New Orleans is that it is home to many small businesses. There are few large businesses left, but the city has a robust community of small businesses... one of the largest number of small businesses per capita in the country. Mayor Nagin also recently passed a $250million proposal to replace or repair hundreds of miles of streets in New Orleans, freeing up millions for other services and for the city's department of economic development. All of this has New Orleans' bond rating at it's highest point in years, allowing the city to help finance projects throughout the city. As a matter of fact, at the moment, there is approximately $1.5Billion worth of construction in the city's downtown district alone... with more on the way. Hopefully, this clearred things up for you.