[StBernard] GOVERNOR BLANCO URGES CONGRESS TO SUPPORT THE REBUILDING OF LOUISIANA

[Westley Annis]

GOVERNOR BLANCO URGES CONGRESS TO SUPPORT THE REBUILDING OF LOUISIANA


Governor to Congress: "These storms knocked us down but they didn't knock us
out." 

WASHINGTON, D.C.-In her first visit to the nation's capitol since Hurricanes
Katrina and Rita devastated Louisiana, Governor Kathleen Babineaux Blanco
today delivered an urgent appeal to the members of the United States Senate
Committee on Finance on the need for strong federal support in the
rebuilding South Louisiana's economy.   

Governor Blanco appeared in person before the Committee on Finance this
morning on Capitol Hill. 

Her testimony was part of a panel that included Mississippi Governor Haley
Barbour and Alabama Governor Bob Riley. Governors Barbour and Riley
participated via video conference. 

Despite the dire situation in South Louisiana, Governor Blanco assured the
committee of her resolve to lead Louisiana to recovery. "Katrina and Rita
brought our people and our economy to its knees," she said. "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." 

After thanking the members of the Committee for their support and the
outpouring of generosity from their constituents to the citizens affected by
the hurricanes, Governor Blanco laid out the facts that prompted her journey
to Washington, D.C.  

"I'm here because the proposals you are considering are about creating
jobs," said Governor Blanco. "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." 

Governor Blanco told the Senate Committee on Finance that, prior to Katrina,
Louisiana's economy was steadily improving. A major focus of her
administration, Governor Blanco informed the Committee that since she took
office in January 2004, the state had announced almost three billion dollars
in capital investment which has created new quality jobs. 

However, post-Katrina and Rita, Governor Blanco said Louisiana's economic
future is in jeopardy. She gave staggering figures on the effects of the two
hurricanes. "Now, hundreds of thousands of our citizens are scattered across
this country," said Governor Blanco. "According to the Congressional Budget
Office, 375,000 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. " 

She added that Hurricanes Katrina and Rita have shuttered or displaced
71,000 firms-almost 41 percent of Louisiana businesses. Most of them are
small, family-owned businesses.  

Governor Blanco told the Committee on Finance that good jobs, high-quality
housing and stronger communities are essential elements to the rebirth of
New Orleans and South Louisiana. She highlighted making cities safe and
secure with stronger levees and more progressive building codes. 

In laying out her proposal to the Committee, Governor Blanco voiced support
for President Bush's call for a Gulf Opportunity Zone that will recruit
Louisiana citizens back into South Louisiana and encourage private
investment in reconstruction.  

She proposed $30 billion in tax-exempt "Hurricane Recovery" bonds, which
will dramatically lower the cost of capital to companies. 

Governor Blanco also urged Congress to consider a $10 billion Louisiana
Business Development Fund that will provide grants to small businesses that
return to the affected areas of Louisiana. She told the committee, "This
country and its economy must have a vibrant commercial center at the mouth
of the Mississippi River, its most important waterway.We need that region
not only for our rich culture, but also for its unparallel and unique
contribution to America's economy." 

Regarding the financial strain on the state's ability to provide adequate
health care for its citizens and its challenge to Louisiana's economic
recovery, Governor Blanco voiced her support for several plans including
Committee Chairman Senator Chuck Grassley and Ranking Democratic Member
Senator Max Baucus' effort to provide full federal financing for Medicaid
services provided to evacuees. 

Governor Blanco also supports federal legislation to fund hurricane
survivors' private health insurance premiums for three months, as well as
Louisiana Senators Landrieu and Vitter's efforts to expand mental health
coverage for Louisiana citizens who have experienced major trauma.  

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

The Governor concluded her opening comments to the U.S. Senate Committee on
Finance by telling the committee, "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." 

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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


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