LA State Offers Emergency Financial Assistance For Hurricane Recovery

Revenue anticipation notes are a short-term option for Louisiana communities facing expensive hurricane-related response and recovery efforts until long-term assistance begins flowing, State Treasurer John N. Kennedy said Tuesday. In addition to the notes supported local revenue or by promises of federal aid, Kennedy said the local governments may be eligible for loans from the IRS. Isaac was an unusual storm because it moved slowly once it hit land, Kennedy said, resulting in heavy rainfall for many hours in the same spot. FEMA said last week it would reimburse 75% of the state’s cost for hurricane protection and preparation efforts, removal of storm debris, and infrastructure repairs. The federal government reimbursed 100% of state and local government expenses from Hurricane Katrina and 90% of the costs from Hurricane Gustav in 2008. FEMA said Louisiana has reached the threshold for 75% reimbursement, based on damages of at least $1.35 per resident. If storm damages total $131 per resident of Louisiana, the reimbursement level would go to 90%. State officials said Louisiana is almost at the 90% level.

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