[StBernard] Governor Blanco responds to U.S. Rep. Tancredo's call for a Katrina spending moratorium

Westley Annis westley at devacaps.com
Sat Sep 1 08:35:05 EDT 2007


Of the much-touted $114 billion which is often cited, does this include
payouts to those who had flood insurance? And of course we all know from
reading articles that some in the insurance industry have accused that
industry of laying off to flood much that was wind damage. Federal
officials of the current administration were disinclined to investigate the
accusations from what I recall reading in the Times-Picayune.

Jim





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Governor Blanco responds to U.S. Rep. Tancredo's call for a Katrina
spending moratorium

BATON ROUGE - Governor Kathleen Babineaux Blanco issued the
following statement today after learning of Colorado Rep. Tom Tancredo's
(R-Littleton) call for a moratorium on Katrina spending. Citing a Government
Accountability Office (GAO) report, Tancredo characterized federal recovery
aid as "runaway government spending."

"Perhaps Rep. Tancredo should read the entire report to which he
refers. The GAO report cites the federal government as the source of waste,
not those at the state and local level who continue working around the clock
to rebuild their communities. He should also know the facts behind the $114
billion figure that is so easily touted as the monetary cure-all for the
largest disaster in our nation's history. Federal investments in the Gulf
Coast's recovery have been generous and historic. However, appropriations
still have not come close to the magnitude of our damages or to the
commitment President Bush pledged in Jackson Square shortly after Katrina.

"The federal government suggests it has allocated more than $114
billion to the Gulf Coast recovery - but they often fail to mention this
$114 billion was distributed among five states - Alabama, Mississippi,
Louisiana, Texas and Florida - in the aftermath of three disasters,
including Hurricanes Katrina, Rita and Wilma. Of this, it is estimated that
federal commitments to Louisiana are roughly $60 billion. A substantial
portion of this assistance was directed to emergency assistance and meeting
short-term needs arising from the hurricanes, such as relocation assistance,
emergency housing, immediate levee repair, and debris removal efforts,
leaving less than $26 billion for actual 'bricks and sticks' rebuilding of
permanent infrastructure. Of this, we have forced enough federally-required
paperwork through the eye of the needle to get nearly $7 billion spent on
permanent construction projects, including more than $3 billion that has
been paid directly to Louisiana home! owner
s.

"To characterize our ongoing recovery challenges as 'runaway
government spending' is an insult to Americans in need. Let me remind him
and others in Congress that Louisiana has contributed nearly $5 billion of
our own resources toward this historic recovery effort. We have painstaking
accountability measures in place to ensure every dollar is appropriately
spent on recovery. We have undergone numerous audits, and we stand tall in
the way Louisiana has honestly disbursed its federal dollars. I share Rep.
Tancredo's concern for transparency and accountability, and I urge him to
stand with us as we face this long-term recovery, just as we would stand
with Colorado should residents there suffer a major disaster. Join us in
demanding more efficient use of recovery aid by reforming the Stafford Act,
cutting the reams of red tape that are hampering our progress."

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