Audit: La. hurricane grants face $5B gap

[Odin]

But lets spend another 100 billion on Iraq.....

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Audit: La. hurricane grants face $5B gap 1 hour, 40 minutes ago



Louisiana's grant program to help people rebuild homes damaged by hurricanes Katrina and Rita is estimated to be as much as $5 billion short as the six-month Atlantic storm season began Friday.

Gov. Kathleen Blanco says the federal government should pay for the entire program, called "Road Home," but pressure is mounting for the state to cover up to $1 billion of the shortfall if it wants to receive more federal aid.

State Legislative Auditor Steve Theriot estimated the deficit at $5 billion in a report released Thursday, $2.1 billion over previous estimates. Theriot assumed the Road Home would not receive a transfer of $1.14 billion in federal grant money the state slated for homeowners but is now the subject of disputes with federal officials. The state audit also assumes a higher average award than in previous estimates.

Blanco's proposed budget does not include a dime for the program, despite more than $2 billion in surplus and unobligated state money available. The state House passed a budget similar to Blanco's on Thursday after rejecting requests from New Orleans lawmakers to put money into the Road Home.

U.S. Rep. William Jefferson of New Orleans said Congress is angry about how Louisiana has handled the money it has already received, particularly a $200 million grant to the city's utility, Entergy New Orleans, and its $750 million contract with ICF International Inc., the private firm hired to run Road Home.

"They think we've wasted a billion dollars or more," he said.

The state's investment in Road Home must be "significant — $700 million to $1 billion — to send a message to Congress, Jefferson said.

President Bush's recovery chief, Donald Powell, has previously said the shortfall is due to the state covering wind damages to homes that the federal government allegedly did not agree to pay. Louisiana Recovery Authority executive director Andy Kopplin has said FEMA underestimated both the number of homeowners who could be eligible for grants as well as the severity of damage to homes.

Jefferson predicted Powell would back off his statements if the state puts money into the program.

Louisiana House and Senate budget leaders indicated Thursday that the legislative session will not end without Road Home getting state money. Blanco and her top aides, New Orleans area legislators, Jefferson and Powell, have been meeting to talk about the shortfall and who should pay.

Jimmy Clarke, Blanco's chief of staff, repeated Blanco's position that the U.S. government should pay for damages linked with breaches of federal levees.

"At the same time, we continue to work and communicate with all factions to see how we can fulfill the promises made to the people of Louisiana relative to the Road Home program," he said.

Audit: La. hurricane grants face $5B gap

For any of you who wonder why I lean toward Libertarian politics, here is one reason why. things like this kill me, I mean really burn me. Bush just doubled aids funding for africa before the G8 too boot.

To hell with everyone else, what about the americans clammering for a decent home and a fair shake after Katrina? I realize the article is a state level analysis of the funding issue but the feds should be involved in this one, IMHO

[Ironside]

But lets spend another 100 billion on Iraq.....

For any of you who wonder why I lean toward Libertarian politics, here is one reason why. things like this kill me, I mean really burn me. Bush just doubled aids funding for africa before the G8 too boot.

To hell with everyone else, what about the americans clammering for a decent home and a fair shake after Katrina? I realize the article is a state level analysis of the funding issue but the feds should be involved in this one, IMHO

Slightly OT but when did aid = libertarian politics? I can get this to isolationism, but that's not a classical (European) liberal position.

Agrees on that the primary focus should be on fixing things at home than fixing them abroad (although some problem does improve at home when fixing them abroad).

[doc_bean]

For any of you who wonder why I lean toward Libertarian politics,

True Libetartianism would mean NO governemnt aid. I think you're confusing it wiht an isolationst policy ? They're definately not the same though isolationism is a point of libertarianism.

[Odin]

Slightly OT but when did aid = libertarian politics? I can get this to isolationism, but that's not a classical (European) liberal position.

Agrees on that the primary focus should be on fixing things at home than fixing them abroad (although some problem does improve at home when fixing them abroad).

That was my point poorly made. We spend billions abroad for silly wars and for aid for others, additionally since the government has its fingers in the funding its become a mess.

Libertarian policies seek to divest government of all functions that can be provided by nongovernmental organizations or private individuals. In this case we have a government entity attempting to manage a function they arent fluent in, and as a result people suffer.

My theory has always been a smaller government and a true open market will enable the laws of supply and demand to perform the tasks needed to support the human condition in a time of crisis like this.

When I posted that article and my comments, I was angry and not very clear on what I meant.

[Odin]

True Libetartianism would mean NO governemnt aid.

Yes you are correct, I more accurately should have said I would rather they spend thier money at home then abroad. Its really the silly numbers of money shipped abroad that irks me, however I didnt say that in my post.

I was pissed about the story and ranting, plus as I consider the responses and my own posting, and a review of libertarian politics Im not all the way to its purest form.