New Orleans has only $1.2 billion available to finance $1.5 billion of recovery projects announced in 2009 by former Mayor Ray Nagin, city officials said last week.
Deputy manager Cedric Grant said the shortfall would result in some projects being delayed or scaled back. Available funds include reimbursement payments from the Federal Emergency Management Agency for hurricane damage, grants from the Louisiana Recovery Authority, insurance payments, and bond proceeds.
Grant said work has been or will soon be completed on 273 of the 653 recovery projects identified by the Nagin administration. Officials are negotiating a large, lump-sum reimbursement payment from FEMA to restore or replace damaged public safety and criminal justice facilities.
Mayor Mitch Landrieu is expected to announce soon a list of 100 high-priority recovery projects for which funding is available. About a third of the projects will involve street repaving, Grant said.
