from YAHOO! NEWS

BATON ROUGE, La. - Louisiana’s grant program to help people rebuild homes damaged by hurricanes Katrina and Rita is estimated to be as much as $5 billion short as the six-month Atlantic storm season began Friday.

Gov. Kathleen Blanco says the federal government should pay for the entire program, called “Road Home,” but pressure is mounting for the state to cover up to $1 billion of the shortfall if it wants to receive more federal aid.

State Legislative Auditor Steve Theriot estimated the deficit at $5 billion in a report released Thursday, $2.1 billion over previous estimates. Theriot assumed the Road Home would not receive a transfer of $1.14 billion in federal grant money the state slated for homeowners but is now the subject of disputes with federal officials. The state audit also assumes a higher average award than in previous estimates.

Blanco’s proposed budget does not include a dime for the program, despite more than $2 billion in surplus and unobligated state money available. The state House passed a budget similar to Blanco’s on Thursday after rejecting requests from New Orleans lawmakers to put money into the Road Home.

U.S. Rep. William Jefferson of New Orleans said Congress is angry about how Louisiana has handled the money it has already received, particularly a $200 million grant to the city’s utility, Entergy New Orleans, and its $750 million contract with ICF International Inc., the private firm hired to run Road Home.

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