Quake Aid Could Fall Short by $3 Billion : Recovery: Total damage to civic structures rises far above estimates prepared shortly after Jan. 17 Northridge temblor.

Damage to roads, schools, hospitals and other government structures from the Jan. 17 Northridge earthquake may be $3 billion more than the money appropriated by Congress to rebuild civic structures in Southern California, according to county and state officials.

Estimates of damage to public facilities have more than doubled--to about $6 billion--over the last year and could climb higher, according to figures prepared by the state Office of Emergency Services and Los Angeles County.

But based on estimates prepared within weeks of the earthquake, the Clinton Administration and Congress assumed $2.8 billion would cover the cost of repairing and replacing public facilities.

The potential $3-billion gap between the claims being filed for reimbursement and funds made available is a cause for concern, said Los Angeles County Chief Administrative Officer Sally Reed.

“The county may have a problem, and if so, so do almost 50 cities, educational institutions, hospitals, and other nonprofit agencies in (Los Angeles and Ventura) counties that have damage claims pending,” Reed said in a report to the Board of Supervisors.

State officials, who are coordinating damage claims for all local jurisdictions, say they share Reed’s fears.

“We’ve had concerns for several months now,” said Tom Mullins, a spokesman for the state Office of Emergency Services. “And we have communicated those concerns to FEMA (the Federal Emergency Management Administration),” he said.

Reed said she hopes Congress will appropriate additional funds.

But if not, local and state governments will either have to find billions of dollars in their already tight budgets to complete repairs or allow a wide variety of facilities from courthouses to bridges and sewers to classrooms and libraries to remain damaged or unusable.

In the weeks immediately after the Jan. 17 temblor, Congress appropriated $5 billion to cover all types of emergency aid--including housing, food and transportation as well as loans and grants so homeowners and businesses could rebuild.

But claims for rebuilding public structures have already exceeded that total appropriation, according to the state figures.

Los Angeles County has filed claims for $2.4 billion to rebuild dozens of buildings and other damaged structures.

The city of Los Angeles has filed claims for nearly $1 billion and the Los Angeles Unified School District has estimated its repairs at $100 million. Dozens of other cities, school districts and agencies have filed thousands of claims totaling several billion dollars more.

FEMA spokesman Phil Cogan said he was unsure of the level of claims already made under the agency’s public assistance program and was uncertain how the shortfall will be handled, but added, “This is a serious implication they are drawing.”

Cogan said he did not know if enough money would eventually be available to cover all legitimate claims but added that, “historically, FEMA has had the funds required.”

Cogan added that if there is a shortfall, FEMA will have to determine which projects have the greatest priority in the community. Those would be the first funded; other projects would be delayed or rejected.

Reed said FEMA officials may already be feeling--and responding to--the looming cash crunch.

State officials have found that in recent weeks FEMA has gotten significantly tougher in its review of damage claims for such things as courthouses, County-USC Medical Center and the Hall of Administration.

“There is concern that FEMA may be trying to reduce damage claims to fit the funds available,” Reed said. “If so, the county . . . has a great deal at stake.”

Mullins of the Office of Emergency Services said the time it has taken to process claims is increasing, though it was unclear whether more claims were being reduced.

Reed said the key reason for the shortfall is that projected costs have dramatically increased from initial estimates.

The county’s initial estimate, for example, was $1.3 billion; it has grown to $2.4 billion.

The city of Los Angeles’ claim has nearly doubled in a year. The city has only recently discovered, for example, that its sewer system is extensively damaged. City officials could not be reached for comment.

In addition, Reed said, there are more than $2 billion in claims from private, nonprofit agencies, hospitals, colleges and universities that appear to have been overlooked or grossly underestimated in initial estimates--including $1 billion from UCLA. So far, no major claims have been rejected and local officials have not stopped reconstruction work on any of the projects for which they are hoping to be reimbursed.

Reed said she is hoping there will be a coordinated effort to lobby the federal government for additional appropriations.