DALLAS - New Orleans Mayor Ray Nagin on Friday vetoed portions of the 2009 budget approved by the City Council, rejected the council's plan to put $50 million into a designated reserve fund, and ordered an immediate hiring freeze for all city departments, including public safety.

Nagin said he took the actions because the council's changes to his proposed general fund budget would endanger the city's ability to issue up to $135 million of general obligation bonds for recovery efforts and imperil the plan to refinance a $171 million taxable pension bond issue from 2000.

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