A debt of about $68 million still looms for the St. Tammany Parish School System, with an additional $108 million in debt from the parish and municipalties that still has not been “forgiven” by the federal government.

Many loans were given after Hurricane Katrina swept through five years ago. Some of these loans have been forgiven, but many in St. Tammany have not, including the one for the school board.

As part of the process, local governments, including St. Tammany Parish, several municipalities and the school board received community disaster loans after Katrina to help cover the costs of regular operations and services. To be forgiven, the entity with the loan had to show operating deficits and revenue losses for three fiscal years following the storm. St. Tammany was in the unique position of being both affected by the storm and also a recovery area, which showed, on the surface, positive revenue the first three years.

In the fourth year, which is not considered in loan forgiveness, the economy began to return to normal. Residents either moved back to their previous homes, moved to another location permanently and because of this, means of funding, such as insurance and Road Home money, ran out. This resulted in a drop of revenue for the parish. Many residents of affected areas moved here after the storm and spent their insurance and Road Home money in the parish, inflating the economy, although temporarily.

In the repayment of loans and how the money is spent, FEMA also does not look at infrastructure, roads, bridges and other capital expenses.

Several officials of the parish visited Washington D.C. last year in an attempt to plead the case for forgiveness. Among the delegation was then-deputy superintendent of the School Board Trey Folse, along with Parish President Kevin Davis, Covington Mayor Candace Watkins, Abita Springs Mayor Louis Fitzmorris and other public officials.

In addition, Davis testified before Sen. Mary Landrieu’s Senate Subcommittee on Disaster Recovery field hearing at Chalmette Elementary School Aug. 26. At that hearing, he submitted an accounting of the funding to FEMA.

St. Tammany spokesperson Suzanne Parsons-Stymiest said, “We believe the debt should be forgiven and we are awaiting a response. One of the issues is that they are considering all the parish’s funds, including pass through funding. Sales tax funds are strictly dedicated and cannot be used for operating expenses. The only source of revenue to pay it back would be the general fund, which has no money.”

She said that state mandated and unfunded costs also have to come out of the general fund. The

The school board budget has dedicated funding for repayment of bonded indebtedness and it also is facing unfunded mandates from the state for this year.

The city of Mandeville did repay their debt, which amounted to $650,000.

Meredith Mendez, spokesperson for the St. Tammany Parish School Board said that monies received were spent on overruns in construction costs after the storm because construction costs were elevated. She also said that they are under negotiations to repay the money and still hoping for a resolution that will forgive the debts.

Congressman Steve Scalise said, “I am disappointed that FEMA was not consistent in forgiving CDL loans. Last week I asked FEMA Administrator Craig Fugate to rethink their decision, and go back to the table with us and establish updated guidelines that treat applicants in St. Tammany fairly with their outstanding CDL loans. A few months ago Vice President Biden came here and said communities who received CDL loans would ‘get their money,’ and we intend to hold him to that commitment. All communities who were affected by Hurricane Katrina’s damage should be treated fairly, and I will continue fighting until our recovery is complete.”