[StBernard] Governor appeals to Congress for $4.2 billion in levee and housing assistance

[Westley Annis]

Levees and homes top priorities on Governor Blanco's recovery agenda 

Governor's testimony before the U.S. Senate Committee on Appropriations 

"Chairman Cochran, Senator Byrd, and distinguished members of this
Committee, it is an honor to come before the Committee that Louisiana's own
outstanding Senator, Mary Landrieu, serves on with you. Thank you for the
work your Committee has done on behalf of our state. 

"There is no greater issue facing Louisiana than the funding for levees and
housing promised in President Bush's Supplemental Appropriations request,
which I fully support. The immediate future of our state - and the hundreds
of thousands of people who want to return home - is now in the hands of this
Congress. 

"I greatly appreciate the President's initial funding request of $1.5
billion for levees and his commitment of $4.2 billion for housing. 

"The Supplemental funding is absolutely essential if we are to construct a
road home for hundreds of thousands of our displaced residents. It is our
ticket to rebuild, recover, and resume our productive place in our nation's
economy. It enables us to implement our housing plan. We have been waiting
for this funding since President Bush's moving speech in Jackson Square in
September. Do not make us wait any longer. Please honor his commitment to
our people. 

"Six months ago, Hurricane Katrina bore down on Louisiana, leading to the
catastrophic failure of our federal levee system. 

"The immense engineering failure sent water into almost every part of our
largest city, where it sat for nearly a month. 

"Our people relied in good faith on federal flood maps and federal levees to
protect their lives and property, and many of you have seen the unfortunate
result.

"Imagine - for a minute - if your state's largest city was underwater for a
month. I can only hope that this experience is never repeated.

"As we were drying out, Hurricane Rita struck. Rita was one of the most
devastating storms in our nation's history. Rita did to Southwest Louisiana
what Katrina did to Mississippi. The combined devastation to our state is
best described "as a catastrophe of Biblical proportions." 

"The entire Gulf Coast suffered, but Louisiana bore the brunt of this
disaster. Katrina claimed over 1100 lives in our state alone. Together,
Katrina and Rita displaced more than 780,000 people and destroyed the homes
of over 200,000 families. An estimated 81,000 businesses were stilled, and
18,000 of our businesses still have not reopened. 

"FEMA estimates show that we had over 100,000 homeowner properties that
suffered major damage or were destroyed from storm surges and levee breaks.
This is a full 76% of the total homes destroyed by the floodwaters. 

"Louisiana's rental properties were even more disproportionately impacted.
Nearly 70,000 units were rendered uninhabitable. This equates to a full 80%
of the rental losses from floodwaters. 

"The Louisiana Recovery Authority worked closely with Chairman Don Powell
and the White House to reach a consensus on this compelling data. Chairman
Powell subjected us, and our consultants from McKinsey & Company, to a
rigorous review that should inspire confidence in our data. 

"I urge Congress to avoid the temptation to chip away at the promised
funding and divert it to other states. I do not for a minute seek to
minimize the needs of Mississippi, Alabama or Texas. My heart goes out to
our neighbors. 

"I am grateful for their warm response to our displaced people. But Congress
has the ability to appropriate funding to them without undermining the
President's promise to us. 

"The data speaks for itself. Any shortfall in the proposed funding would
jeopardize our recovery. 

"Please understand that we are not asking for a handout, but a hand-up to
get our people back on their feet. History will judge us by how we respond
to our own people's suffering with the resources of the greatest nation on
earth. 

"This Congress regularly appropriates billions of dollars to help people all
over this world. 
Every month, American taxpayers spend billions for infrastructure
improvements, equipment and operations in Iraq and Afghanistan, and our
troops deserve this support. 

"Surely, we can find a way to provide at least $1.5 billion to strengthen
levees protecting Americans citizens. Surely, we can fund the $4.2 billion
for American homeowners who want to return home to Louisiana. 

"Safety is the first step in enabling Louisiana's families and businesses to
return. Hurricane season is less than three months away. We must not waste
another minute in putting the designated $1.5 billion to work strengthening
our levees.

"Louisiana has taken great strides to improve our levee system. We have:

Consolidated a 100-year-old system of levee boards with professional
oversight and maintenance. 

Created the Coastal Protection and Restoration Authority to provide
statewide oversight of levee boards and enforce a master plan for coastal
and flood protection. 

"I have faith that these reforms will give Congress the assurances needed to
make a lasting investment in a reliable levee system.

"Second, we must rebuild our houses in order to bring families home.

"Chairman Cochran, a special thanks to you for your intervention based on
your personal knowledge and experience in securing the initial Community
Development Block Grant funding. 

"We are especially grateful for Louisiana's share. While generous, this $6.2
billion leaves tens of thousands of our citizens stranded and homeless. The
initial 54% share Louisiana received from CDBG funding does not allow us to
enact a plan sufficient to address Louisiana's more than 75% share of the
devastation. 

"I believe most of you know that our delegation embraced the Baker Bill, a
bipartisan plan proposed by Congressman Richard Baker. The Baker Bill would
have bridged the gap between available resources and unmet needs.

"When the Administration sidelined the Baker Bill, we returned to the
drawing board. I went back to the Administration and said: If not the Baker
Bill, then help us find the resources to enact an adequate solution. 

"We fought hard for the additional $4.2 billion in CDBG funding that allowed
us to announce our housing plan. If our combined total of $12.1 billion in
housing and hazard mitigation funding is realized, I will invest it in four
key areas:

1. $7.5 billion to owner-occupied housing;

2. $1.75 billion to affordable rental properties;

3. $2.5 billion to infrastructure; and 

4. $350 million to economic development. 

"All of these funds will be spent in the storm-damaged areas. I promise
Congress that these funds will be held to the highest standards of
accountability. We have retained Deloitte & Touche to set up front-end
controls and thoroughly audit our investment of taxpayers' money. We will
also hire our own internal audit and investigative staff to root out fraud
and abuse. We are determined to be responsible stewards of the federal
investment in our recovery. 

"I want to invest the infrastructure funding to address our most critical
needs in health care, schools and colleges, and other areas of critical
needs that FEMA funds do not cover. 
"Here is one example. The state just helped to broker a partnership between
LSU and the United States Veterans' Administration to open a shared
hospital. 

"This partnership would explore activities for health care delivery in the
greater New Orleans area. As planning for this health care partnership
continues, our infrastructure funding will help us to bring resources to
bear in support of this new facility. 

"Known as The Road Home, our housing plan provides a flexible package of
four options for families who want to return home. We will help families:
Repair, Rebuild and Relocate through a Buyout. For owners who do not want to
reinvest in their Louisiana properties, they will have the option to sell. 

"I propose capping this assistance at $150,000 per homeowner. Our plan is
not designed to be a simple compensation program. Our plan will prioritize
rebuilding in Louisiana. 

"We must ensure that our communities of the future are not plagued with
blighted homes of the past. The sell option ensures that citizens who do not
want to reinvest in Louisiana still have the ability to sell. 

"Our plan requires homeowners to rebuild safely and to mitigate hazards.
Homeowners must comply with our newly enacted statewide building codes, and
with new FEMA flood map elevations. 

"With nearly 70,000 rental units lost, a component of our plan seeks to
restore affordable rental properties in new mixed-income communities. 

"Gap financing, seed funding, and other mechanisms are under consideration
as a way to influence the restoration of affordable housing. 

"Mr. Chairman, I ask to submit for the record documents I have provided to
the Committee on The Road Home housing plan.

"Louisiana is moving forward. As one example, we have removed 18 times more
debris than was taken from the World Trade Center site. 

"We are conducting a comprehensive review of lessons learned, and making
necessary changes to our emergency preparedness plans. 

"We have taken over the failing New Orleans schools to create a school
system that recognizes our children's potential. 

"Six months after Katrina and five months after Rita, Louisiana is turning
the corner and moving towards a safer, stronger and brighter future. 

"With passage of the Supplemental funding, I predict the sounds of hammers
and saws will ring through all of our communities as our homes are rebuilt.
And not too long after that, we will hear the voices of children return to
our streets. That will be a great day for America. 

"Thank you for standing by us to make this day a reality. This is an
investment in our collective future that America can be proud to support."



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