[StBernard] FEMA: U.S. Pays $9,000 per La. Resident

Westley Annis westley at da-parish.com
Sat Nov 5 00:13:49 EST 2005


FEMA: U.S. Pays $9,000 per La. Resident


The Federal Emergency Management Agency (FEMA) projects that it will
spend a total of $41.4 billion in Katrina/Rita-ravaged Louisiana - or
about $9,000 per resident.


Good news for the recipients, but a new storm is brewing which
requires state and local governments to foot part of that bill.


Federal law mandates state and local governments to pay for a portion
of disaster relief costs. That share can be as much as 25 percent.


In the special case of Louisiana, the state's share of the costs has
been set at $3.7 billion, or roughly 9 percent of FEMA's total
projected costs in Louisiana.


But flood-ravaged Louisiana can't pay the tab, a spokeswoman for Gov.
Kathleen Blanco has disclosed, according to a report in USA Today.


"You can't squeeze $3.7 billion out of this state to pay this bill.
Period. That would be difficult for us on a good day," Denise Bottcher
said.


Indeed, the $3.7 billion represents just under half of the $8 billion
the state spends per year for all operations. Moreover, say state
staffers, hard-hit Louisiana is scrambling to handle a projected $1
billion shortfall.


According to FEMA, Congress would have to enact legislation to forgive
Louisiana's debt. As it is, President Bush has already waived certain
state and local costs, such as debris removal. Without special
legislation, however, he is required by law to collect the $3.7
billion from The Bayou State taxpayers.


Most of the money Louisiana must pay will be applied toward
reimbursement for personal property lost in the storms.


FEMA pays up to $26,200 per household for uninsured losses.


Officials estimate that 60,000 households in New Orleans and St.
Bernard Parish alone will qualify for the payments.


Before Hurricane Katrina, the largest FEMA disaster was the 9/11
attacks. FEMA spent $8.8 billion for relief in New York after 9/ 11 -
less than $500 per resident in the NYC metropolitan area.




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