[StBernard] Governor Blanco secures Congressional support of recovery agenda

[Westley Annis]

Governor Blanco secures Congressional support of recovery agenda


WASHINGTON, DC - After a week of meetings with top Congressional leaders, Governor Kathleen Babineaux Blanco returns from Capitol Hill this weekend with firm commitments to advance her ten-point plan to advance Louisiana's recovery from Hurricanes Rita and Katrina. 

"This new Congress is ready to work with us and remove federal barriers that are currently slowing our recovery," Governor Blanco said. "I told members of the House Democratic Caucus during this cold week in Washington, that this is the warmest reception I have ever experienced on Capitol Hill. House Speaker Nancy Pelosi, Senate Majority Leader Harry Reid and their leadership teams understand the urgency of our needs, and have committed to making Louisiana's recovery from Hurricanes Rita and Katrina a national priority. House committee chairs are already drafting legislation to accomplish my agenda and will push it forward this Spring."

In her meetings this week, Gov. Blanco urged Congress to reform the Stafford Act to account for catastrophes, adopt a national solution to drive down skyrocketing insurance rates that are unsustainable for coastal communities and invest in critical upgrades and maintenance to federal infrastructure priorities, including levees. 

"Under the new majority, we will be able to meet the challenges Hurricanes Katrina and Rita posed to the conscience of our country," said House Speaker Nancy Pelosi of California. "I appreciate Governor Blanco giving us a solid guide to meet this challenge, and I look forward to a speedy delivery for the people of Louisiana and the Gulf Coast."

"Senator Landrieu and I had a very good meeting with Governor Blanco, and I look forward to working closely with both of them to help Louisiana rebuild and recover," said Senate Majority Leader Harry Reid of Nevada.

In addition to overarching items of national significance impacting Louisiana's recovery, Gov. Blanco offered ten quick steps for Congress to act on immediately: 

Remove State Matching Requirements for Federal Assistance Grants: Congress would send a shot of adrenaline into the Gulf Coast recovery by authorizing 100% federal cost-share for Hurricanes Katrina and Rita. Waiving the 10% non-federal cost-share responsibility would speed up our recovery, just as it did in New York when Congress provided 100% federal cost share after 9/11 and after Hurricanes Andrew and Iniki. This would allow the state to invest an estimated $700 million in CDBG funds in critical needs, including repairing our police stations, fire stations and other important infrastructure. Louisiana urges Congress to include this fix in the upcoming Supplemental Bill.

Cut the Red Tape in Hazard Mitigation Funding for the Road Home Program: Federal red tape holds hostage $1.2 billion of Hazard Mitigation Grant Program funding needed to return people to their homes. The White House required Louisiana to include HMGP funding as part of The Road Home Housing Program to fill our funding gap so we could offer a $150,000 maximum award to
homeowners, the same as Mississippi. FEMA is unwilling to approve this funding due to restrictive rules governing HMGP usage. Louisiana plans to use HMGP funding for: 1) The voluntary acquisition of structures on sites that local governments wish to return to open space; and 2) The provisions of grants to homeowners of up to $7500 to fund individual mitigation measures. Congress can quickly free up these funds for homeowners by simply allowing a waiver of the FEMA regulations or transferring the funds to CDBG
dollars. 

Exempt the Road Home Awards from Federal Tax Penalties: Louisiana asks Congress to exempt homeowners who claimed a casualty loss deduction on their 2005 federal income tax return from having to pay this money back to the IRS upon receipt of the Road Home grant. Homeowners who received a casualty loss deduction and decide to rebuild are penalized by having to repay the IRS, while homeowners who received the deduction and decide to sell their property and move away are not penalized. Louisiana urges Congress to exempt tax penalties from the Road Home awards (S.29/H.R.641).

Allow Forgiveness of Community Disaster Loans: Less than two months after Hurricane Katrina, Congress passed the Community Disaster Loan Act of 2005, requiring local governments receiving Katrina and Rita aid to reimburse the federal government. Congress eliminated the possibility of forgiveness, even though historically, over 90% of Community Disaster Loans have been forgiven. Louisiana asks Congress to repeal the prohibition which forbids cancellation of these community disaster loans by the federal government (S.253/H.R.680).

Combat Crime in New Orleans: Louisiana has sent an additional 300 National Guard Troops and 60 State Troopers to reinforce the New Orleans Police Department since last June. The state continues to assist in providing functions essential to the city's criminal justice system. Louisiana calls on Congress to provide an urgent influx of additional COPS grants to the city, and an overall boost in funding to reestablish the criminal justice system in the area. 

Extend SSBG Supplemental Funds for One Year: SSBG supplemental funds remain available until September 30, 2007. Louisiana asks Congress for a one-year extension of funds in order to ensure a continuation of critical hurricane recovery related services. Factors including the slower than anticipated repopulation of affected areas and the tight labor market for social service professionals contributed to the need for this extension. SSBG funding provides critically needed services including mental health, child welfare, the treatment of addictive disorders and other important services (S.293/H.R.184). 

Allocate Disaster Recovery Funds Proportional to Damage: Louisiana recommends that Congress mandate a policy requiring the allocation of disaster recovery funds based on actual damages, especially in situations where one state may have a disproportionate share of damages in comparison with other states. The recent decision by FEMA to give nearly four times more housing money for Katrina Cottages to Mississippi than Louisiana, in spite of Louisiana suffering 75-80% of damages from Katrina and Rita,
magnifies the need for this policy. 

Invest in Hurricane Protection and Coastal Restoration: Louisiana's master plan for a comprehensive approach to coastal restoration and protection requires a strong partnership with the federal government. Louisiana is grateful to Congress for passing an historic OCS revenue sharing bill. However, real OCS funding will not begin until 2017. We must act now to build up our defenses against future hurricanes. Louisiana calls on Congress to see that the Army Corps works in concert with the State's plan. Congress should begin the Coastal Impact Assistance Program as scheduled, and pass the Water Resources Development Act, a bill that includes critical infrastructure funding. 

Increase Recovery Aid to Small Businesses and Approve Key Business Extensions: After 9/11, Congress made available nearly one-half a billion dollars in grants to small businesses. Comparable relief was not extended to small businesses along the Gulf Coast. Small businesses make up the lifeblood of Louisiana's economy, and they were the hardest hit by the storms. Louisiana urges Congress to work with us to supplement existing grant and loan programs and provide the tax relief needed to help our small businesses fully recover. 

Key Business Extensions: Louisiana requests an extension to December 31, 2010, of the placed in service deadline for the Gulf Opportunity Zone Tax Credits. The Go Zone allows businesses investing in the parishes most affected by Hurricanes Katrina and Rita to take a 50 percent tax deduction for new facilities or equipment. It is imperative that the extension is granted to facilitate low-income housing tax credits targeted to rental housing developments. 

Congress should also extend the 2009 Renewal Communities sunset, and expand the current New Orleans Renewal Community to include the seven parishes most affected by the storms. Finally, Louisiana asks for the Guest Worker Program to be extended to allow foreign workers a full two years in the Gulf Opportunity Zone. We ask for this extension at the same time that Louisiana continues to invest in workforce training geared towards the recovery. 

Clarify SBA Loan Treatment Relating to Road Home Grants: Congress needs to instruct the SBA on the difference between a loan and a grant. A federal requirement exists that Road Home Grants be utilized to repay SBA Loans. Our homeowners need capital to rebuild their homes. Forcing them to repay loans with grant proceeds does not give them capital, it forces them to go elsewhere. Louisiana asks Congress to provide a full fix to this problem as homeowners struggle to return home. 

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The Louisiana Disaster Recovery Foundation
Louisiana's Fund for Louisiana's People
www.louisianahelp.org