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Home Front: Economy
Louisiana Officials Could Lose the Katrina Blame Game
2005-09-07
(CNSNews.com) - The Bush administration is being widely criticized for the emergency response to Hurricane Katrina and the allegedly inadequate protection for "the big one" that residents had long feared would hit New Orleans. But research into more than ten years of reporting on hurricane and flood damage mitigation efforts in and around New Orleans indicates that local and state officials did not use federal money that was available for levee improvements or coastal reinforcement and often did not secure local matching funds that would have generated even more federal funding.

In December of 1995, the Orleans Levee Board, the local government entity that oversees the levees and floodgates designed to protect New Orleans and the surrounding areas from rising waters, bragged in a supplement to the Times-Picayune newspaper about federal money received to protect the region from hurricanes. "In the past four years, the Orleans Levee Board has built up its arsenal. The additional defenses are so critical that Levee Commissioners marched into Congress and brought back almost $60 million to help pay for protection," the pamphlet declared. "The most ambitious flood-fighting plan in generations was drafted. An unprecedented $140 million building campaign launched 41 projects." The levee board promised Times-Picayune readers that the "few manageable gaps" in the walls protecting the city from Mother Nature's waters "will be sealed within four years (1999) completing our circle of protection."

But less than a year later, that same levee board was denied the authority to refinance its debts. Legislative Auditor Dan Kyle "repeatedly faulted the Levee Board for the way it awards contracts, spends money and ignores public bid laws," according to the Times-Picayune. The newspaper quoted Kyle as saying that the board was near bankruptcy and should not be allowed to refinance any bonds, or issue new ones, until it submitted an acceptable plan to achieve solvency. Blocked from financing the local portion of the flood fighting efforts, the levee board was unable to spend the federal matching funds that had been designated for the project.

By 1998, Louisiana's state government had a $2 billion construction budget, but less than one tenth of one percent of that -- $1.98 million -- was dedicated to levee improvements in the New Orleans area. State appropriators were able to find $22 million that year to renovate a new home for the Louisiana Supreme Court and $35 million for one phase of an expansion to the New Orleans convention center. The following year, the state legislature did appropriate $49.5 million for levee improvements, but the proposed spending had to be allocated by the State Bond Commission before the projects could receive financing. The commission placed the levee improvements in the "Priority 5" category, among the projects least likely to receive full or immediate funding.

The Orleans Levee Board was also forced to defer $3.7 million in capital improvement projects in its 2001 budget after residents of the area rejected a proposed tax increase to fund its expanding operations. Long term deferments to nearly 60 projects, based on the revenue shortfall, totaled $47 million worth of work, including projects to shore up the floodwalls. No new state money had been allocated to the area's hurricane protection projects as of October of 2002, leaving the available 65 percent federal matching funds for such construction untouched. "The problem is money is real tight in Baton Rouge right now," state Sen. Francis Heitmeier (D-Algiers) told the Times-Picayune. "We have to do with what we can get."

Louisiana Commissioner of Administration Mark Drennen told local officials that, if they reduced their requests for state funding in other, less critical areas, they would have a better chance of getting the requested funds for levee improvements. The newspaper reported that in 2000 and 2001, "the Bond Commission has approved or pledged millions of dollars for projects in Jefferson Parish, including construction of the Tournament Players Club golf course near Westwego, the relocation of Hickory Avenue in Jefferson (Parish) and historic district development in Westwego." There is no record of such discretionary funding requests being reduced or withdrawn, but in October of 2003, nearby St. Charles Parish did receive a federal grant for $475,000 to build bike paths on top of its levees.
Posted by:Steve

#9  The Fed > "Iff you don't use it, you lose it", and the Fed was and remains kind enough to give local and State Govts. a few YEARS to explain why they should keep the monies.
Posted by: JosephMendiola   2005-09-07 23:46  

#8  levy not level

The LA gov and US senator have so much to be defensive about. Landreiu has family all over LA state government.
Posted by: Captain America   2005-09-07 17:39  

#7  Just discovered that each level has its very own fiefdom, gaming the feds while protecting turf.

Lovely and lethal.
Posted by: Captain America   2005-09-07 17:37  

#6  Here's a copy of Louisiana's Evacuation plan, if anyone's interested. It doesn't seem like they followed much of it.

http://www.ohsep.louisiana.gov/plans/EOPSupplement1a.pdf
Posted by: tu3031   2005-09-07 12:28  

#5  Hey--free money from the gov'ment! What we gonna do wid it? Whut? We gotta raize matchin' funds? That'd be a lot of work, and besides, we needs to go shoppin'!
Posted by: ex-lib   2005-09-07 11:18  

#4  Suggestion: Adjudicate the Louisiana state government morally bankrupt and put it into receivership.
Posted by: GK   2005-09-07 11:03  

#3  If you look at where the money was spent, the levee commision bought a private jet, limos, condos, etc. instead of building up the levees. Geee.... I wonder why they failed and the federal government and taxpayers don't want to give these crooks any more money?
Posted by: mmurray821   2005-09-07 10:48  

#2  This is typical!!The La. government at work?? Let's build a golf course and bike paths!!!
Posted by: ARMYGUY   2005-09-07 10:31  

#1  I very well imagine that a lot of this could be tied to the Greens too. Sierra Club/NRC/Greenpeace/etc. probably would've showed up if they'd tried to increase the size of the levees. When State/Locals fail to find matching funds for Fed money, something's very wrong, they usually don't pass that up for anything! Of course, higher/stronger levees don't "look good" for Capital Improvement budgets compared to a new courthouse, convention center, and even bike paths ON TOP of the levees (where's Screamin' Dean when you need him to fight the bikepaths?).
Posted by: BA   2005-09-07 10:22  

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