Hurricane Building Repairs

May 22, 2007

Reported by: Associated Press

Just like homeowners, Louisiana state government is haggling with its property insurers over payments for damage from hurricanes Katrina and Rita.

Louisiana carried $500 million in insurance on its state buildings, like offices, public hospitals and historical structures, and state facilities had $1.7 billion in damage. But since the 2005 storms, the director of the governor's Office of Facility Planning and Control says the state's collected about $240 million from the myriad of companies that provide the coverage.

Jerry Jones says with the state's $25 million deductible, that leaves about another $235 million  that still is the subject of negotiations and disagreement.

Jones told lawmakers on the House Ways and Means Committee yesterday that he thought the state would be successful getting the balance.

The committee is reviewing construction spending proposals for the upcoming fiscal year, which begins July 1st. Jones says about $70 million in proposals in the construction budget bill would help cover some rebuilding costs after Katrina and Rita, including building repairs not covered by FEMA or insurance.