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PRESS RELEASE

Division of Administration News Update
UPDATED: Breakdown of Certain Costs to State Government for Hurricane Gustav
BATON ROUGE (September 10, 2008) - The Division of Administration today reased a breakdown of certain estimated costs associated with Hurricane Gustav.

Yesterday, the Governor stated that, so far, an estimated cost to state government related to Hurricane Gustav is around $210 million, and he cautioned that the number is just a preliminary estimate and is expected to rise.

Because that cost estimate is comprised of estimated costs to agencies in general, the following is a breakdown of estimated costs for certain activities, services, and commodities. Again, this is a very rough estimate to date. These figures themselves are estimates as well, as some activities are ongoing and/or all costs have not been calculated.

***NOTE: The costs below do not factor in federal/state cost share. The Governor has submitted a request to FEMA to waive the 25 percent non-federal (State and local) cost share for category A (Debris Removal), category B (Emergency Protective Measures) and Direct Federal Assistance (DFA) for the life of the disaster.***

Shelters (DSS): $13.5 million
Medical special needs shelters (Office of Public Health, DHH): $3.3 million
Medical special needs transportation (Office of Public Health, DHH): $6.1 million
Evacuation costs (DOTD): $21 million
Fuel costs for Dept of Agriculture and Forestry: $5 million
Generators (DNR): $20 million

GOHSEP costs (estimated):
Animal Carriers & Supplies: $710K
Levee Protection: $780K
MREs: $19.7 million
Satellite phones: $225K
Water: $2.5 million
Ice: $5.3 million

OTHER COSTS (very preliminary):
Emergency Management Assistance Compact (EMAC): $47.9 million
Action Request Forms (ARFs) -- Requests to FEMA for federal resources: $211 million

UPDATE: “We had conference calls with the rating agencies during the disaster response and I am pleased to report that they informed me they have no intentions to downgrade the state’s credit rating. To me this says that Louisiana was not only prepared to respond to people’s needs during the emergency but also well positioned beforehand from a fiscal standpoint," said Commissioner of Administration Angele Davis.

“We are hopeful about receiving 100 percent federal reimbursement, but we will also utilize the state’s emergency response fund and work with the legislature to provide the necessary funding for the disaster.”

(Note: SERF funding available is $50 million)

For the latest on the recovery from Hurricane Gustav, you can visit emergency.louisiana.gov with the most up-to-date information.

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