[StBernard] LRA Board Approves Aid Packages for Healthcare, Education and Infrastructure Sectors

[Westley Annis]

LRA Board Approves Aid Packages for Healthcare, Education and Infrastructure Sectors

MANDEVILLE, La. (January 12, 2007) - The Louisiana Recovery Authority (LRA) board of directors signed off on several aid packages today including funding for repairs to private schools, state buildings and the construction of a new state-of-the-art teaching hospital and to help pay for local government obligations for debris removal. Should Governor Kathleen Babineaux Blanco, the Louisiana Legislature and the US Department of Housing and Urban Development (HUD) approve these plans, almost all of the state's $10.4 billion in Community Development Block Grants (CDBG) for housing, infrastructure and economic development will have been committed. 

The board approved a final vote recommending the allocation of $74 million in CDBG funds allowing the state's Division of Administration to acquire land and commission architecture and engineering design work for the new Medical Center of Louisiana - New Orleans (MCLNO). The plan will now come before Governor Blanco, the full Legislature and HUD for final approval. 

The vote also cemented the LRA's commitment to support an additional allocation of $226 million for the hospital's construction. At the December LRA board meeting, Louisiana State University (LSU) Health Care Services Division and the state's Division of Administration committed to submitting to the LRA revised strategic plans and financial analysis for the hospital that consider the possibility of future reforms of the state's health care financing system. Creation of an action plan amendment for the $226 million allocation will be considered at a future board meeting.

In another show of support for the private, non-profit schools, colleges and universities struggling to repair costly damages to their facilities, the LRA gave final approval for the allocation of up to $40 million of CDBG funds to cover the 10% non-federal match of Federal Emergency Management Agency (FEMA) Public Assistance grants. 

It is estimated that private, non-profit schools and universities sustained nearly $500 million in damage, following Hurricanes Katrina and Rita. Now the plan will be considered by Governor Blanco, the Legislature and HUD. The majority of the repairs to cover these damages are eligible for assistance from FEMA, which funds 90% of the repair costs.

State buildings also incurred storm damages totaling an estimated $1.71 billion from Hurricane Katrina and $43 million from Hurricane Rita. It is expected that FEMA will not cover almost $220 million worth of these repairs. In response to the shortfall, the LRA board voted for final approval of a plan to allocate an additional $135 million of CDBG funds to the State Building Infrastructure Program, increasing the funding for this program from $142.5 million to $277.5 million. 

The board deferred a vote to allocate $200 million in CDBG funds to parishes across the state for the implementation of long-term community recovery planning efforts in order to further consider the damage estimate formula for apportioning these funds. The funds are designed to cover projects related to economic, environmental, housing and public safety issues. 

A resolution recommending $100 million in CDBG funds to pay the non-federal match for all FEMA work performed related to debris removal and temporary facilities was also approved. Despite the incalculable amount of need and lack of local resources, FEMA elected to begin requiring, on July 1, 2006, a 10 percent non-federal match for most parishes on debris removal and all parishes related to temporary facilities. As expected, many local governments are financially incapable of meeting this fiscal requirement. The assistance plan now moves to Governor Blanco, the Legislature and HUD for final approval. 

In the final vote of the day, the board passed a resolution to allocate $20 million in CDBG funds to help restore the fishing industry by restoring and improving infrastructure damaged by last year's storms and providing direct aid to fishermen. It is estimated that the fishing industry lost $582 million in damage and lost revenues following the hurricanes. The vast majority of that damage was sustained by privately-owned equipment and infrastructure, which are not eligible for FEMA Public Assistance. 

The resolution will come before the LRA for final approval at next month's meeting. Should it pass, it would move to Governor Blanco, the full Legislature and HUD for final consideration. 

Before the morning session concluded, the LRA received an update on workforce development programs, a preview of the launch plans for the polling period of Louisiana Speaks, the long range regional planning initiative of the LRA, and an update on the Unified New Orleans Planning Process.

"It is our hope that these visionary plans for South Louisiana will come to life so our children and grandchildren can live a better life than we did," said LRA Long Term Community Planning Chairwoman Donna Fraiche. "The LRA will incorporate these survey results in a master plan for the state and begin an implementation strategy soon after."

During an update on UNOP, LRA Board Member David Voelker said, "Our citizens have become very savvy about planning. They are taking their time in making these important decisions. They've been through almost 18 months of this and they understand how it works. It's been a long, but healthy and helpful process." 

Lieutenant Governor Mitch Landrieu later addressed the LRA board regarding the recovery of the tourism and cultural economy. The Lieutenant Governor explained the need for additional assistance for marketing funds to attract visitors back to Louisiana, in recognition of the damage that the storms caused to the Louisiana tourism brand. 

As the state's second largest industry, its contribution to the recovery of the economy is critical, However, tourism and cultural-related businesses throughout the state continue to suffer revenue loss following the storms. Additionally, negative press continues to hamper the full recovery of the tourism industry. Landrieu asked the LRA Board to consider securing additional funding in the amount of $115 million for a comprehensive marketing plan for the state and an additional $100 million for the grants to small businesses. 

The LRA Board committed to work with the Lieutenant Governor to seek additional funds for marketing and to carry the message of the importance of the tourism economy to our recovery.

During a discussion around legislative priorities, LRA Board Member Sean Reilly provided an overview of recovery-related priorities for the State Legislature while LRA Vice Chairman Walter Isaacson summarized federal priorities for the 110th Congress. 

Commenting on the increased crime rate in New Orleans, Isaacson said, "We have pushed very hard and not gotten good satisfaction from Washington. Crime is a national problem. I urge President Bush to direct the DEA and FBI resources to this region. We need to do whatever it takes to stop crime in New Orleans."

Reilly announced that the LRA Support Foundation will be funding a study on the benefits and risks of Louisiana creating a state catastrophic insurance fund as has been under consideration by the Louisiana Legislature.

Audit Committee Chair Virgil Robinson presented the findings of a Deloitte & Touche audit aimed at identifying challenges within the FEMA Public Assistance process. Colonel Jeff Smith from the Governor's Office of Homeland Security and Emergency Preparedness (GOHSEP) detailed some of the changes his office has made since receiving the report that will expedite the payment of funds to applicants. 

Education Committee Chair Linda Johnson reviewed progress made on repairs to public schools as well as an update on teacher housing. The board discussed the importance of facilities planning within the public education system in New Orleans. LRA Vice Chairman Walter Isaacson expressed particular concern that state and local government be responsive toward community and neighborhood plans to both rebuild their schools and create their own charter schools. The LRA staff was directed to ensure that this happens. 

Before adjourning, the board heard an update from the state's Office of Community Development and the state's contractor, ICF International, on the Road Home homeowner assistance program. 

As of today, the program had received almost 96,000 applications and held or scheduled close to 64,000 appointments. More than 23,600 benefit option letters had been sent to homeowners while grants averaged just under $79,000 totaling around $2 billion in benefits. 

Board resolutions and presentations for Thursday's board meeting are available on the LRA website at www.lra.louisiana.gov <http://www.lra.louisiana.gov> . 

Hurricanes Katrina and Rita devastated South Louisiana, claiming 1,464 lives, destroying more than 200,000 homes and 18,000 businesses. The Louisiana Recovery Authority (LRA) is the planning and coordinating body that was created in the aftermath of these storms by Governor Kathleen Babineaux Blanco to lead one of the most extensive rebuilding efforts in the world. The LRA is a 33-member body which is coordinating across jurisdictions, supporting community recovery and resurgence, ensuring integrity and effectiveness, and planning for the recovery and rebuilding of Louisiana.

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