66°
Baton Rouge, Louisiana
3 Day Outlook
Mon
82°
59°
20%
Tue
82°
62°
10%
Wed
83°
66°
20%

Latest Weather Blog

Follow our weather team on social media

Many federal Katrina loans won't have to be repaid

4 years ago Thursday, August 19, 2010 12:22:54 PM CDT August 19, 2010 Thursday, August 19 2010 Aug 19, 2010 in News
Source: Associated Press

About 61 percent of the $822 million in federal funds borrowed by storm-wrecked communities after hurricanes Katrina and Rita won't have to be repaid. But that leaves more than $296 million owed to the federal government.

Financially struggling sheriffs, school boards, parish councils and other local government agencies received federal disaster loans to help cover the costs of regular operations after the storms wiped out much of their income.

Congress agreed to "forgive" the loans if agencies met certain criteria involving operating deficits and revenue losses.

The State Bond Commission received a report Thursday on which agencies won't have to repay the loan money. About $501 million has been forgiven.

The state is haggling with federal officials over the rest, arguing that more of the borrowing shouldn't have to be repaid.

More News

comments powered by Disqus

Desktop News

Click to open Continuous News in a sidebar that updates in real-time.
5 Days
Radar
Sun
66°
60°
Mon
Partly Cloudy
82°
59°
Tue
Mostly Cloudy
82°
62°
Wed
Mostly Cloudy
83°
66°
Thu
Partly Cloudy
86°
68°