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Red Cross nearing the end of storm funds

05:06 PM CDT on Saturday, May 10, 2008

Associated Press

NEW ORLEANS -- Red Cross officials in New Orleans say the agency is nearing the end of its storm-relief funds. It has given nearly $200 million to help the longterm recovery of victims of the 2005 hurricanes.

Kay Wilkins is head of the agency's southeast Louisiana chapter. She says that once the recovery money is gone, the Red Cross will resume its more traditional role providing short-term relief and educating in areas such as first aid and water safety.

The Red Cross still plans to keep several long-term case managers to help families with continuing needs.

Wilkins says money for some programs will begin running out this summer, she said, and will likely be exhausted by year's end.

There's $28 million left to help victims of hurricanes Katrina and Rita with rebuilding and recovery needs like utility deposits, child care and appliances. Another $26 million will help pay for psychological testing and therapy for families with debilitating stress or other mental health problems.

There's another $10 million in grants that Red Cross plans to announce soon for large local institutions to help improve their mental-health resources.