FEMA bills La. $3.7 billion for Katrina [View All]

(That's the headline on Yahoo's frontpage. Doesn't match article headline, but is more appropriate)

Louisiana can't pay Katrina, Rita bills
By Alan Levin, USA TODAY Fri Nov 4, 7:49 AM ET

Flood-ravaged Louisiana can't pay the $3.7 billion that the U.S. government says is its share of hurricane relief, a spokeswoman for Gov. Kathleen Blanco said Thursday.

"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," the spokeswoman, Denise Bottcher, told USA TODAY.

Staffers for the governor "about fell over" Wednesday night when they received the
Federal Emergency Management Agency's estimate of the state's costs for hurricanes Katrina and Rita, said Mark Merritt, a consultant working for Blanco.

FEMA projects that it will spend a total of $41.4 billion in Louisiana, about $9,000 per resident. Federal law requires state and local governments to pay a portion of disaster relief costs. That share can be as much as 25%. The $3.7 billion estimate is roughly 9% of FEMA's projected costs in Louisiana.
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