BATON ROUGE, La. -- FEMA has urged a federal arbitration panel to reject claims that the state is owed $492 million for hurricane damages to LSU's Charity Hospital in New Orleans.
It's the latest development in a fight over funds that are key to LSU's finance plans for construction of a new $1.2 billion academic medical center.
The state dropped a FEMA appeal and decided to go the arbitration route to expedite a decision in a long-standing dispute that stems from 2005 Hurricane Katrina damages that shuttered the hospital.
The Federal Emergency Management Agency argues that only $126 million is owed.
LSU officials say there will be a pre-hearing conference to determine the next step within the next 10 days.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
