02:42 PM CDT on Tuesday, October 4, 2005

Amy Forliti / Associated Press

Mayor Ray Nagin said Tuesday the city is laying off as many as 3,000 employees -- or about half the city's workforce -- because of the damage done to New Orleans' finances by Hurricane Katrina.

Nagin announced with "great sadness" that he had been unable to find the money to keep the workers on the payroll.

He said those who would receive pink slips would be "non-essential," employees and that no firefighters or police would be among those let go.

"I wish I didn't have to do this. I wish we had the money, the resources to keep these people," Nagin said. "The problem we have is we have no revenue streams."

Nagin described the layoffs as "pretty permanent," and said that employees would be informed through mass e-mails. The city will work with the Federal Emergency Management Agency to reach workers who had fled the city in the aftermath of Hurricane Katrina, which struck about a month ago.

Meanwhile, former President Clinton met with dozens of New Orleans-area evacuees staying at a shelter in Baton Rouge's convention center. And officials ended their door-to-door sweep for corpses in Louisiana with the death toll Tuesday at 972 -- far fewer than the 10,000 the mayor had feared at one point. Mississippi's Katrina death toll was 221.

A company hired by the state to remove bodies will remain on call if any others are found.

Clinton, working with former President Bush to raise money for victims, shook hands and chatted with the evacuees, some of whom have been sleeping on cots in the Rivercenter's vast concrete hall for more than a month and complained of lack of showers, clean clothes, privacy and medical care.

"My concern is to listen to you ... and learn the best way to spend this money we've got," Clinton said.

Robert Warner, 51, of New Orleans said he and others have struggled to get private housing set up through the Federal Emergency Management Agency.

"We've been mired in the bureaucratic red tape since Day One," he said.

(Copyright 2005 by The Associated Press. All Rights Reserved.)