[StBernard] St. Bernard 'Will Be Broke' Without Loan

[Westley Annis]

St. Bernard 'Will Be Broke' Without Loan

POSTED: 10:37 am CDT April 3, 2008


CHALMETTE, La. -- With federal disaster aid starting to dry up, St. Bernard
Parish President Craig Taffaro said the parish faces a looming budget crunch
that could force several million dollars in spending cuts.

Taffaro said the parish's $39 million operating budget for 2008 is propped
up by $8.5 million from a multiyear federal disaster loan that will be
depleted by the end of the year.

Taffaro said without the loan, the parish would be broke.

David Peralta, the parish's chief administrative officer, said the parish
faces a projected shortfall of about $4.5 million for 2009 that must be
offset by spending cuts, barring an unexpected surge in revenue.

He said the biggest budget buster is the sanitation department, which will
cost an estimated $10 million to operate next year. That's three times the
pre-Katrina figure.