La. wants levee system debt forgiven

Louisiana officials are in the process of asking the U.S. government to forgive about $2.9B in interest it owes over 30 years for its cost share of the New Orleans area levee system rebuilt after Hurricane Katrina. The levee system’s overhaul cost more than $20B - including 350 miles of levees, flood walls, gates and pumps. The state is expected to make its first of 30 annual payments on the $1.1B debt during the third quarter of 2020. Adding interest over 30 years would wind up costing the state a total of $3B, according to Chip Kline, chairman of the Coastal Protection and Restoration Authority, which includes $519M in interest accrued during construction. About 63 percent of the $3B would be interest, he said at Feb. 20’s monthly Coastal Protection and Restoration Authority Board meeting in New Orleans. Louisiana officials have been talking to Trump Administration about setting up a meeting with the U.S. Army Corps of Engineers and the Office of Management and Budget. The meeting is likely to take place in March or April. The state hopes to start talks with OMB about how it could avoid paying interest. Louisiana’s 2020 annual coastal plan includes a request for $103M from the state Legislature’s Capital Outlay budge to make a first payment next year. (Source: NOLA.com 02/20/19)