[StBernard] LRA Progress Report Highlights Funding Successes, Dollars Spent

[Westley Annis]

LRA Progress Report Highlights Funding Successes and 
Dollars Spent on the Ground


BATON ROUGE, La. (January 11, 2008) - As a result of the Louisiana Recovery Authority's leadership efforts to secure federal resources for the recovery, Community Development Block Grant (CDBG) funding for Louisiana has more than doubled from $6.2 billion to $13.4 billion since 2005 according to figures outlined in the latest issue of the LRA Progress Report, which was released today. 

Data provided in the report also suggests $43.5 billion--nearly 70% of all the federal dollars that have been earmarked for Louisiana's recovery have been spent thus far-- including more than $10.4 billion that has been invested in permanent reconstruction projects. 

"Over the last two and a half years, we have worked tirelessly in Washington to secure federal resources for the recovery, and here at home to ensure that the money is being spent honestly, wisely, and efficiently," said LRA Executive Director Andy Kopplin. 

"As a result of these efforts, Louisiana's discretionary block grant funding has increased by 116%, and we now estimate that more than $10.4 billion has now been spent on the ground to rebuild our homes, roads, levees, hospitals, police and fire stations, schools and universities and other critical infrastructure." 

Estimates compiled by the LRA and included in the Progress Report suggest more than $43.5 billion in federal resources have been spent on Louisiana's recovery thus far, including: $19.5 billion in emergency disaster relief services and protective measures; $13.6 billion in flood insurance payments to policyholders through the National Flood Insurance Program; and $10.4 billion on rebuilding permanent infrastructure. 

Since 2005, the LRA has led the state's effort to secure discretionary CDBG funds to rebuild housing, infrastructure and small businesses. The LRA's bipartisan board was instrumental in making the case with the White House and Congress for additional dollars to bring Louisiana in line with other states. The LRA brought in McKinsey & Co. on a pro bono basis to analyze housing and infrastructure data and effectively make the case for equity-demonstrating that Louisiana suffered three quarters of the total damages from Hurricanes Katrina, Rita, and Wilma. The persuasive case made by the LRA on Capitol Hill helped secure Congressional appropriations of $4.2 billion in June 2006 and another $3 billion in November 2007 to bring Louisiana's CDBG funding totals up 116% from their original level to $13.4 billion.

By the end of 2007, more than $10.4 billion of the $28 billion in funds appropriated for permanent rebuilding (discretionary and non-discretionary) have been spent "on the ground" in Louisiana. 

This figure includes CDBG funds allocated by the LRA, with the approval of Governor Kathleen Babineaux Blanco and the Legislature. It also includes dollars spent so far for levees, Community Disaster Loans and other infrastructure projects funded through FEMA's Public Assistance (PA) program.

Most of the dollars -- $5.6 billion as of December 31, 2007 - can be attributed to grants paid directly to homeowners through the Road Home program. The LRA Progress Report estimates funds spent in other rebuilding categories include: $1.8 billion on levees; $710 million on permanent construction and rebuilding with FEMA public assistance funds; $90 million on economic development; and $1.1 billion on other transportation and public infrastructure construction projects. 

Of the more than $10.4 billion federal rebuilding dollars spent in Louisiana, estimates show that the majority has been spent in the eight most devastated parishes including: $4.9 billion in Orleans; $2.2 billion in Jefferson; $876 million in St. Bernard; $783 million in St. Tammany; $569 million in Vermilion; $340 million in Plaquemines; $277 million in Calcasieu; and $81 million in Cameron. 

In addition, Louisiana has spent more funds more quickly than after any other disaster in American history under FEMA's Public Assistance (PA) program. As of December 31, 2007, Louisiana had spent $2.8 billion under the PA program including more than $2 billion for emergency response services and $710 million for permanent construction. Only one other disaster, the Los Angeles earthquake of 1994, has ever had more PA spending. Louisiana will likely pass Los Angeles' $3.3 billion total in this year and will likely double that amount before the books are clo! sed on Katrina and Rita in the coming years. 

To download the Progress Report or to view the figures cited, click here <http://www.lra.louisiana.gov/assets/quarterlyreport/LRAQuarterlyReportDecember07.pdf> . 

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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