Reverend Monsignor Emile J. Fossier
June 25, 2007U.S. weekly oil and gas rig count down by 2
June 27, 2007
(AP) The Louisiana Recovery Authority agreed Monday to a reshuffling of federal recovery aid to help plug a shortfall in the Road Home, part of a $1 billion bailout pushed by Gov. Kathleen Blanco for the post-hurricane home buyout and repair program.
Large pools of federal money earmarked for state building repairs and a new charity hospital in New Orleans would be shifted to the Road Home, under the plan approved unanimously by the LRA board – which oversees recovery block grant aid given to Louisiana by Congress.
Also, programs for rental housing repair, local building repairs, fisheries and business loans and grants funded with federal recovery aid would be nipped and tucked to fill in the final gap.
Combined with state dollars, the maneuvering would generate $1 billion to pour into the Road Home – to match plans moving through the state Legislature. The reshuffling of federal aid also requires approval from state lawmakers and federal officials.
The Road Home recovery program is funded with $6.2 billion in federal recovery money, but it faces a shortfall estimated up to $5 billion in what would be needed to aid all eligible homeowners.
Blanco is seeking help from Washington but has been told by members of Congress that the state needs to show a $1 billion spending commitment of its own to help fill in the shortfall.
LRA Executive Director Andy Kopplin said Louisiana officials hope to get additional money for the Road Home in an Iraq war spending bill expected to come before Congress in September or October. He said Washington officials expected Louisiana to spend some of its own money first.
“It makes their job easier to help us, and so while we don’t like it, it may not be fair and just, it is the reality, and a billion dollars makes a loud statement,” Kopplin said.
The deadline for homeowners to apply for Road Home aid is July 31. Kopplin said the actual program shortfall should be clear within six weeks from the deadline to apply for aid.
The LRA board didn’t tap into a $513 million pool of federal block grant money that local cities and parishes hope to use to help pay for pieces of their local recovery plans, like sewage and water repairs and infrastructure needs.
But Kopplin said the LRA would hold onto that money for now _ as a funding fallback if Congress didn’t provide more money for the Road Home.
The LRA agreed to reshuffle:
• $300 million in federal aid the state planned to use to build a new charity hospital in New Orleans. The state’s plans are hung up amid partisan disagreements in Washington about the hospital, so state officials are proposing to use state dollars and borrowing for the charity hospital and reallocate the federal dollars to the Road Home.
• $277.5 million in federal aid that was slated to be used for repairs to state buildings damaged by the 2005 hurricanes. Congress agreed to waive the state’s match for FEMA repairs to buildings, and the state plans to borrow some building repair funds by issuing bonds, freeing up the federal dollars.
• $55.2 million in other federal recovery aid from an array of programs. The dollars come from a 5 percent reduction to dollars allocated by the LRA but unspent, including $21.1 million from rental repair programs, $32.1 million from local infrastructure repair programs and $2 million from a small business loan and grant program.
The bailout plan also includes $372.5 million in state dollars.
Also Monday, the LRA approved a blueprint for rebuilding New Orleans, an authorization needed so the plan could be eligible for federal recovery grant funding.
The Unified New Orleans Plan carries a $14.4 billion price tag. However, facing funding realities, city recovery director Ed Blakely, has in mind a smaller-scale proposal based in part on the plan, with a cost of $1.1 billion. Little money has been secured as of yet even for that less costly plan.
The LRA Board of Directors agreed unanimously to accept the Unified New Orleans Plan as the basis for city recovery and Blakely’s redevelopment plan as the official recovery plan for the city.
The plans call for repairs of streets, buildings and other infrastructure, along with targeted investments in new construction. The New Orleans City Council has signed off on the plans.
Gov. Kathleen Blanco was in Washington, D.C., to lobby Congress for more money to support the “Road Home” program. Sitting in on the discussion with lawmakers is, from left, Financial Service Chairman Rep. Barney Frank (D-MA), area Rep. Charlie Melancon and Blanco.
