(AP) — The state on Friday decided to let an arbitration panel settle its dispute over the federal government’s tab for Hurricane Katrina damage to a New Orleans hospital.Gov. Bobby Jindal’s administration submitted documents outlining the decision to challenge the Federal Emergency Management Agency’s $150 million offer to cover damage at Charity Hospital. The state believes it’s due nearly $500 million to replace the hospital.FEMA said the state did not do enough to protect the building from further decay after the 2005 storm, resulting in the lower offer. Commissioner of Administration Angele Davis said the Office of Facility and Planning Control has “consistently demonstrated that the hospital was more than 50 percent damaged by Hurricane Katrina, qualifying it for full replacement cost” under the FEMA regulations.- – – -Contact The Daily Reveille’s news staff at [email protected]