[StBernard] Statement of Governor Kathleen Blanco to U.S. Senate Finance Committee

[Westley Annis]

Statement of Governor Kathleen Blanco to U.S. Senate Finance Committee
September 28, 2005

"Mr. Chairman, Mr. Ranking Member and members of the committee, thank you
for your very kind and generous welcome. You and many of your constituents
have been incredibly gracious and welcoming to so many Louisiana citizens
displaced by Katrina and Rita. 

"Your constituents have welcomed our people into their homes and
communities. You have contributed millions to various charities to support
our families and our communities.

"On behalf of my citizens, thank you for all you have done and will do for
us. 

"Our people have endured one of the most challenging months in our history.

"Exactly one month ago today, August 28, we were in the last stages of
preparing for Hurricane Katrina. 
 
"I know you've heard it said before, but it bears repeating: Katrina will be
remembered as the worst natural disaster in our nation's history. And as you
know, Hurricane Rita has only added to the destruction and misery of our
people.

"Before Katrina, Louisiana's economy was coming on strong.  I took office in
January 2004 and focused my efforts on creating new jobs.  And we were
enjoying great success.
In just a year and a half, we had announced almost three billion dollars in
capital investment that is creating thousands of new quality jobs.

"Now, hundreds of thousands of our citizens are scattered across this
country. According to the Congressional Budget Office, 375 thousand
Louisiana citizens are out of work, and fearful of an uncertain future.

"Thousands of Louisiana businesses have been destroyed or displaced,
creating a potential tsunami of unemployment and suffering.

"This is my first visit to Washington since Hurricane Katrina.  I'm here
because the proposals you are considering are about creating jobs.
And that's what we need in the face of this massive suffering and
heartbreak. Jobs. We need jobs to bring our people home and restore our
economy.

"Katrina and Rita brought our people and our economy to its knees. These
storms knocked us down, but they didn't knock us out. And with your help and
support, we will come back stronger and more prosperous than before.

"How do we do it?

"With good jobs, 
With high-quality housing, and 
With stronger communities

"But first, we must make our cities safe and secure.

"And that means the rebirth of New Orleans and South Louisiana will be on a
foundation of stronger and more secure levees and one of the country's most
progressive building codes.

"We will not restore our communities and our economy until we secure the
city from the ravages of another hurricane - and assure our businesses and
homeowners that they can be insured.

"That's ultimately what I'm here to talk about: restoring the economy of New
Orleans and South Louisiana. 

"Mr. Chairman, details of our proposals are in the written testimony I have
submitted. Allow me to use the remainder of my time to touch on a few of the
most important points.

"Katrina and Rita have shuttered or displaced 71,000 firms -- almost 41
percent of Louisiana businesses. Most of them are small businesses. They are
family businesses . without deep pockets.

"The package we're discussing today gives our businesses quick access to the
short-term capital they desperately need. 

"I support President Bush's call for a Gulf Opportunity Zone that will
recruit our people back into New Orleans and south Louisiana and encourage
private investment in reconstruction.

"We propose up to 30 billion dollars in tax-exempt "Hurricane Recovery"
bonds. This will dramatically lower the cost of capital to companies of all
sizes.

"A job-creation tax credit will motivate large companies with significant
payrolls to remain in the region.

"I'm asking Congress to consider a 10 billion dollar Louisiana Business
Development Fund to provide grants to small businesses that return to the
affected areas of our state.
Just in case it is not apparent to you, this country and its economy must
have a vibrant commercial center at the mouth of the Mississippi River, its
most important waterway.  

"Just as the nation knew that we must recreate the economic greatness of New
York City after 9-11, the nation and the world need New Orleans and south
Louisiana. We need that region not only for our rich culture, but also for
its unparalleled and unique contribution to America's economy.

"In that sense, I am not only asking you to approve this legislation because
it is critically important to Louisiana. I seek your support because New
Orleans and south Louisiana's economic rebirth are vital to our nation.

"The hurricanes have also created enormous health care crises-both in
Louisiana and in states where many of our evacuee families have relocated.

"The financial strain of this health care crisis threatens our families and
will hamper our economic recovery.

"That is why I support your effort, Mr. Chairman, and that of Senator
Baucus, to provide full federal financing for Medicaid services provided to
evacuees.  

"Regions of Louisiana, and other states where our evacuees have gone, should
not be financially punished for providing the health care our families need.

To help families who cannot pay for their private health insurance, I
support federal legislation to fund hurricane survivors' private health
insurance premiums for three months.

"I also support the efforts of Louisiana's Senators to expand mental health
coverage for our citizens who have seen so much trauma. 

"This will expand community health centers and federally qualified health
centers. It will also provide hospitals with the critical resources they
need to survive and retain their workforce.

"We are looking forward, not backward.  The President and I, and Governors
Barbour, Riley and Perry, with the help of the Congress, are committed to
rebuilding our devastated states.   That's where our attention needs to be.

"I thank you your for time and we look forward to your questions."

-END-


The Louisiana Disaster Recovery Foundation (LDRF), Louisiana's fund for
Louisiana's people, has been established by Governor Kathleen Babineaux
Blanco in order to support long-term family restoration and recovery and
help provide assistance to our citizens in need through a network of
Louisiana charities and non-profit agencies.

877.HELPLA1 (877.435-7521)
www.louisianahelp.org