[StBernard] Governor Blanco to use state funds to address Road Home projected shortfall

[Westley Annis]

Governor Blanco to use state funds to address Road Home projected shortfall; pledges $600 - 700 million in state support.

BATON ROUGE - Governor Kathleen Babineaux Blanco today issued the following statement in support of using state funds for the Road Home program.

"We are working with the new Congress and the White House on the potential Road Home shortfall created because the magnitude of Louisiana's situation is greater than earlier federal estimates. I thank Speaker Nancy Pelosi, Majority Leader Harry Reid and Members of the new Congress who have joined our Delegation to make the Gulf Coast recovery a priority. In fact a mere four months after I met with leaders on my federal recovery agenda, the supplemental bill has come through with much-needed relief for our communities. Congress has forgiven some of our state obligations for this unprecedented recovery. We, in turn, will now use state dollars for the Road Home shortfall. We have currently identified between $600-700 million in state funds to put towards this effort. 

"Throughout this recovery, Louisiana has stepped up to meet the new challenges and obligations we face as a result of Hurricanes Katrina and Rita, committing $4.6 billion in state funds. I am prepared to continue this course in the hopes of securing the federal funding necessary to help our people rebuild. We will not let our people down and I ask the federal government to do the same."

The Governor's comment drew praise from numerous New Orleans legislators. Representative Cedric Richmond said, "This is clearly a step in the right direction by the Governor and I appreciate her leadership on this matter."

Representative Karen Carter stated, "I believe these actions will both strengthen our hand in Washington and ensure that Louisiana's citizens in need of Road Home dollars will get their funding."

Senator Diana Bajoie called the Governor's commitment of state dollars "vital to the recovery and rebuilding of New Orleans and other hurricane impacted areas."

The Governor continues to negotiate for additional federal housing assistance for Louisiana's citizens following reports of an expected Road Home shortfall. Her conversations with Chairman Don Powell are expected to continue this week.

"The Governor's commitment to put state funds toward the Road Home shortfall will meaningfully advance our negotiations with Congress and the White House and I commend her for taking this initiative," said LRA Vice Chairman Walter Isaacson.

"Still, I hope our leaders on Capitol Hill remember that Louisiana suffered an estimated $100 billion in physical damages. After federal investments and insurance are counted, Louisiana is still left with an estimated $34 billion in unrecovered losses. It is no secret that we have significantly more needs than we do resources. But the Governor's commitment makes clear that we are going to do whatever it takes to make sure our homeowners are covered and our rental, small business and infrastructure programs can move forward as planned." 

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