The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Monday, September 23, 1996            TAG: 9609230018
SECTION: LOCAL                   PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: ASSOCIATED PRESS 
DATELINE: RALEIGH                           LENGTH:   44 lines

N.C. CAN EXPECT $750 MILLION AFTER FRAN STATE LEADERS WELCOME ANNOUNCEMENT BUT ASK FOR MORE.

President Clinton announced Saturday that North Carolina probably will receive about $750 million in federal disaster aid to help recover from Hurricane Fran.

The amount is about half the $1.5 billion in total relief he requested for all victims of Fran and Hurricane Hortense. The hurricanes caused damage in at least four other states and Puerto Rico.

The $1.5 billion represents $291 million more than is available in this year's federal budget.

State leaders said they welcome the announcement, but some added that more money is still needed.

``This is an important and significant first step toward meeting the needs of our citizens who have been affected by Hurricane Fran,'' said Rep. Eva M. Clayton, D-N.C., on Saturday evening. ``I will continue to work with my colleagues in Congress to seek additional funds.''

Clayton said estimated that about $200 million in additional aid will be needed after Clinton's request is approved.

Gov. James B. Hunt Jr. and U.S. Sen. Jesse Helms announced Wednesday that they are seeking a total aid package from Congress of about $2 billion.

Hunt has said that the state's total loss from Fran will exceed $4 billion. The figure includes losses covered by various forms of insurance.

These losses include about $1.2 billion in damage to privately insured homes, vehicles and other property and about $600 million in federally insured flood damage and crop losses.

State official and insurance industry representatives say a good deal of the damage done by the hurricane and subsequent flooding is not covered by insurance.

Clayton aide Johnny Barnes said the House is expected to vote Wednesday on the hurricane aid as part of a budget package. The Senate could act as soon as Tuesday, Barnes said.

Helms and other members of the state's congressional delegation proposed on Friday a $725 million aid package that would draw $240 million from foreign aid programs and 0.1 percent from the budgets of other federal agencies.

KEYWORDS: HURRICANE FRAN COST DISASTER RELIEF by CNB