KSLA News 12 Shreveport, Louisiana |State takes Charity funding dispute to arbitration

State takes Charity funding dispute to arbitration

Associated Press - October 2, 2009 5:14 PM ET

BATON ROUGE, La. (AP) - The state has decided to let an arbitration panel settle its dispute over the federal government's tab for Hurricane Katrina damage to a New Orleans hospital.

The Jindal administration on Friday submitted documents outlining their decision to challenge the Federal Emergency Management Agency's $150 million offer to cover damage at Charity Hospital.

The state believes it's due nearly $500 million, replacement value on the facility.

FEMA says the state did not do enough to protect the building from further decay after the 2005 storm, necessitating the lower offer.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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