[StBernard] Baker: Make plan a state entity

[Westley Annis]

Baker: Make plan a state entity

Donald Powell drilled at hearing

By GERARD SHIELDS
Advocate Washington bureau 
Published: Mar 10, 2006 

WASHINGTON - The expected clash between U.S. Rep. Richard Baker and his
political nemesis never materialized Thursday, with the Louisiana
congressman instead calling for his federal rebuilding plan to become a
state entity.

That doesn't mean Donald Powell, federal coordinator for Gulf Coast
rebuilding, did not face criticism and tough questioning from Democratic
members of a House subcommittee on housing and community development.

Earlier in the year, Powell and President Bush rejected a call from Baker,
R-Baton Rouge, to create a federal corporation that would use at least $20
billion in U.S. Treasury bonds to buy back hurricane-damaged properties and
package them for redevelopment.

Powell and Bush said they did not want to put the federal government into
the real estate business. On Thursday, Baker asked Powell if the
administration would object to the creation of a state agency to do the same
thing as his proposed Louisiana Recovery Corp.

"That's a decision for the local people to make," Powell said, adding that
rebuilding "should come from the local and state leadership and not
Washington, D.C."

Bush has offered the state an additional $4.2 billion in Community
Development Block Grants to buy damaged properties. State recovery leaders
said Thursday that they hope to form a state entity, though it would
probably not have enough resources to mirror the scope of Baker's federal
proposal.

The state is proposing offering homeowners $150,000 minus any insurance or
federal payments they've received.

"I think we're going to create an entity that will include doling out the
money," said Walter Isaacson, vice chairman of the Louisiana Recovery
Authority advisory panel. "But I think people will think it easier to have a
direct-to-homeowner payment formula."

Though he was expected to grill Powell, Baker was cordial throughout the
hearing.

"You have the most thankless job in the U.S. government," Baker told Powell.
"You're like the Energizer bunny - you just keep going and going and going."

Powell faced his share of criticism. He had the misfortune of addressing a
congressional panel the day after Bush criticized Congress for not fully
funding the recovery effort by cutting $1.5 billion in levee protection.

The president's comments riled Rep. David Scott, D-Ga., who called Bush's
comments "the low point of his presidency" and noted Bush's spurning of
Baker's bill.

"This president should be ashamed of himself," Scott said.

Rep. Barney Frank, D-Mass., said the recovery of the Gulf region is
proceeding at a "slow and inadequate" pace.

"I am embarrassed by the response of the federal government, of which I am a
part," said Frank, the ranking Democrat on the panel. "This is not the
response of a wealthy and powerful nation."

Rep. Barbara Lee, D-Cal., agreed.

"We hope you provide today some hope for the people of New Orleans," Lee
told Powell. "Because there is little progress taking place."

Rep. Emanual Cleaver, D-Mo., expressed concern about a recent report from
members of a panel of experts that the levees around New Orleans are not
being rebuilt properly by the U.S. Army Corps of Engineers.

"We built the Hoover Dam. We built the Golden Gate Bridge. We can rebuild
those levees to the standards that buildings and people can be safe,"
Cleaver said.

Powell assured the committee that the levees would be built to pre-Hurricane
Katrina strength. 

"I'm confident the corps is on track," Powell said.

Powell also pledged a full recovery for the region. "The president and
residents of this area can agree on this: Failure is not an option," he
said.