Disaster Price Tag for Katrina Balloons

[tuvor]

By ANDREW TAYLOR, Associated Press Writer Wed Sep 7, 3:10 AM ET

WASHINGTON - Cost estimates for relief and recovery efforts from Hurricane Katrina are running as high as $150 billion, making it clear that a federal budget deficit picture that only weeks ago seemed to be brightening has now gotten considerably worse.

In July, with great fanfare, the White House announced a $94 billion improvement in the deficit outlook for the current budget year and promised that
President Bush would easily fulfill his pledge to cut last's year's record deficit in half by the time he leaves office.

The White House budget office in July was predicting that the deficit for the budget year ending Sept. 30 would drop to $333 billion, $79 billion below last year's record, and that next year's deficit would be $341 billion. Now, both figures are rising fast as the government spends about $2 billion a day on the Katrina relief effort, all of which adds directly to the deficit.

At this point, the government is spending whatever it takes. Even the most severe spending hawks say there is no other course.

http://news.yahoo.com/s/ap/20050907/ap_on_go_co/katrina_deficit

[coffeenap]

1. kick

[FloridaPat]

2. Why don't they just put it "off budget" like the Iraq war. Then it won't

cost anything.

And why is everyone assuming the feds are going to pick up the whole tab? There should be something in NO insured.

[tuvor]

3. How much of the "tab" did NY pick up? n/t

[FloridaPat]

4. I do know the WTC buildings were insured. * promised them $40

billion but only delivered $20.