Later in the call, White House aide Joe Hagin asks specifically about the condition of the levees. Gov. Kathleen Blanco tells him that no failures were confirmed -- yet.
"We keep getting reports in some places that maybe water is coming over the levees," Blanco said. "I think we have not breached the levee. We have not breached the levee at this point in time.
From Power Line:
The AP article is fatally compromised by its factual errors, and adds nothing to our understanding of the issues surrounding Hurricane Katrina. It also raises an important point about the leaks that form the basis for many news stories these days. The AP took what appears to have been a substantial quantity of leaked material, and turned it into a brief against the Bush administration. Whether the documents themselves contain anything noteworthy, and whether, on balance, they support the AP's tendentious interpretation, is impossible to tell. In view of the fact that no one trusts the AP, the New York Times and other news outlets who make use of leaked documents and other materials to report on them objectively, here is a modest proposal: let us see them. If the AP will release the leaked materials, the rest of us will quickly figure out what significance, if any, they have.
UPDATE: Wizbang has more, including a link to the AP video, which confirms that the discussion was about levee overtopping, not breaching.