By Jesse Russell

On Tuesday New Orleans Mayor Ray Nagin announced the layoff of 3,000 city workers. Louisiana Governor Kathleen Blanco said the budget constraints facing New orleans were refelected throughout the Gulf Coast states and she asked the federal government for help.

Nagin has asked the WHite House to waive the Stafford Act which prohibits the use of Federal Emergency Management Agency funds to pay regular salaries. The act was temporarily suspended in New York City after the September 11 attacks.