[StBernard] Surplus won't pave 'Road Home'

[Westley Annis]

Surplus won't pave 'Road Home'
Recovery program expcted to run dry despite state windfall, federal aid

By MICHELLE MILLHOLLON
Advocate Capitol News Bureau 
Published: Sep 30, 2007 - Page: 4A 

The next governor must figure out how to cover a shortfall of at least $5.6
billion in the Road Home program for homeowners affected by the hurricanes.

Even a $1 billion state government surplus coupled with the $1 billion
already set aside for the problem does not get a new administration halfway
toward eliminating the funding gap.

Road Home is expected to run out of money by the end of the year, just weeks
before the new governor is sworn into office.

Gov. Kathleen Blanco plans to travel to Washington, D.C., next month to ask
Congress for a bailout.

"We are asking for a tremendous amount of money - one more time. Each time
you go, it gets more difficult," Blanco said.

Blanco's approach has been to allocate a relatively small amount of money to
the problem while looking to the federal government to resolve the bulk of
it.

Most of the four leading candidates for governor also expect Congress to fix
the problem.

Only one - New Orleans businessman John Georges - offers an alternative
approach.

Georges, who has no party affiliation, said he is willing to use the unsold
portion of the state's tobacco settlement to fill the Road Home gap if it is
the only solution. But he said he would prefer to use those funds on
protecting wetlands, which is the constitutional dedication for the money.

U.S. Rep. Bobby Jindal, R-Kenner, state Sen. Walter Boasso, D-Arabi, and
Public Service Commissioner Foster Campbell, a Bossier Parish Democrat, said
they expect President George W. Bush to keep the promise he made in Jackson
Square to do whatever it takes to bring back Louisiana.

In their opinion, his pledge was a promise that thousands of homeowners will
not lose their most valuable asset, their homes.

The best vehicle for that, Jindal said, is the supplemental bill Congress is
expected to consider next month.

"We're going to do everything we can to apply pressure," Jindal said. "My
commitment as governor is to make sure promises are kept."

Campbell also points to his proposed processing tax on foreign oil as a
revenue generator that could help with the shortfall if Congress fails to
approve more funding.

The White House has been less than sympathetic.

The president's point man on the recovery, Donald Powell, blames the
shortfall on the state's insistence on including wind damage in the
program's payouts. Powell wanted Road Home benefits limited to flood
victims.