Updated: Mon Nov. 09 2009 3:32:55 PM

CTV.ca News Staff

The storm system Ida lost strength over the Atlantic Ocean Monday morning and has now been downgraded from a hurricane to a tropical storm, but it still packs enough punch that the governors of Alabama and Florida have declared a state of emergency.

The status change was made by the U.S. National Hurricane Center in Miami as the system made its way towards the Gulf Coast.

Hurricane warnings were dropped and replaced with tropical storm warnings from Louisiana to the Florida Panhandle. The storm is expected to hit the region on Tuesday.

Earlier Monday morning Ida had lost some steam, said Steve Miller of the Canadian Hurricane Centre

"Right now this morning it looks like the intensity of the storm has dropped down and it's just slightly below a Category 2... so the storm does seem to be weakening," Miller told CTV's Canada AM.

According to reports, residents of the Gulf Coast appeared to be taking the approaching storm in stride, and there were no plans for mandatory evacuations.

"Even though we're telling everybody to be prepared, my gut tells me it probably won't be that bad," Steve Arndt, director of Bay Point Marina Co. in Panama City, Fla., told The Associated Press.

A hurricane warning had been in place from Pascagoula, Miss., east to Indian Pass, Florida.

Other areas of Louisiana, Mississippi, Alabama and Florida were subject to tropical storm warnings and hurricane watches.

On Sunday, Louisiana Gov. Bobby Jindal declared a state of emergency for his state, and Mississippi Lt. Gov. Phil Bryant did the same.

In Pensacola Beach and nearby Perdido Key, residents were encouraged to get out of town, and school was cancelled in the area for Monday and Tuesday.

Some schools around New Orleans also cancelled classes for Monday as Louisiana declared a state of emergency as a pre-emptive measure, and put the National Guard on high alert in case assistance is needed.

Residents were asked to secure garbage cans, barbecues and patio furniture, and remove loose limbs from nearby trees to prepare for winds gusting up to almost 100 kilometres per hour.

The system was expected to brush past Louisiana and Mississippi before making landfall near Alabama.

Miller said cooler waters in the Gulf prevented Ida from gaining strength as it approached land. However, the system could still dump a lot of rain when it hits land, Miller said.

"This is November, and when these storms are in the Gulf in July there's lots of warm water in the Gulf and they do tend to strengthen, but now the water is cooler," he said.

The storm is expected to have minimal impact on Canada. Miller said it is forecast to take a "right turn" after making landfall in the U.S., and will likely dissolve after a few days in the southeastern U.S.

With files from The Associated Press