Louisiana lawmakers press for urgent housing aid

Louisiana Gov. Kathleen Blanco (D) admits she’s a card-carrying member of the Hurricane Katrina fatigue club, but that isn’t preventing her and other Louisiana officials from pressing Congress for billions of dollars for hurricane-ravaged residents.

“We want to go away,” Blanco told reporters on Wednesday at a Washington briefing with New Orleans Mayor Ray Nagin (D) and other officials. The group is asking Congress to provide $3.3 billion to pay for houses seriously damaged or destroyed by Hurricanes Katrina and Rita, which ripped through New Orleans and coastal Louisiana within weeks of each other in 2005.

{mosads}If Congress does not allocate the money by the end of the year, the Louisiana officials say the “Road Home” housing program would run out of funds, leaving thousands without help. They also suggest the program may have to be shut down if lawmakers do not provide the money by the end of the year.

Louisiana also wants Congress to approve legislation, backed by both Louisiana senators, that would provide waivers allowing $1.7 billion in already appropriated hazard-mitigation funds to be used to cover the gap in housing money.

Louisiana isn’t picky in terms of a vehicle, Blanco said. Hurricane funds previously have been attached to supplemental spending bills on the Iraq war, but a new supplemental may not move until next year. Various appropriations bills and an end-of-year omnibus package would also be alternatives.

The request is likely to become entangled in a fight between Republicans and Democrats over spending that is already in full force. New Orleans and Louisiana have come under withering criticism from some GOP lawmakers, who charge that millions have been wasted on flood recovery efforts.

For example, GOP presidential hopeful Rep. Tom Tancredo (Colo.) in August said it is “time the taxpayer gravy train left the New Orleans station.” He charged that the money “that has been wasted on these so-called ‘recovery’ efforts has been mind-boggling.”

Blanco acknowledged the total cost has resulted in some “sticker shock” from lawmakers. But she said meetings with the House Democratic Caucus and House Majority Whip James Clyburn (D-S.C.) on Tuesday were promising.

“When we come to the American taxpayers for assistance, we want citizens of the country to know there’s a need and it’s not wasteful spending,” said Blanco, who is not running for reelection. The state’s primary election is Saturday.

Louisiana officials are trying to put pressure on President Bush to support their request, but so far the White House has not offered a position, they said. Blanco requested a meeting with either the president or his senior advisers on Katrina, and said she expected to meet with Al Hubbard, assistant to the president on economic policy.

Blanco did not portray this as a snub, telling reporters at a roundtable on Wednesday that she and the president are engaged in ongoing talks on recovery efforts. She said she appreciates that the president has to be fiscally responsible, but noted he made an “awesome promise” that he would do everything in his power to help coastal Louisiana residents.

“We have to remind him of his promise,” Blanco said, adding that funding for the Iraq war puts additional pressure on the White House to respond to the needs arising from Hurricane Katrina. “We think domestic issues are just as important as international issues.”

Blanco said she would meet with Senate Minority Leader Mitch McConnell (R-Ky.) on Wednesday, as well as with GOP members of the Louisiana congressional delegation. The group is also meeting with several members of the Senate Appropriations Committee.

Congress already has approved $10.4 billion for housing, infrastructure and economic development in New Orleans, with $7.5 billion allocated specifically for the Road Home program. Under that program, homeowners affected by either hurricane can receive up to $150,000 in compensation for uninsured losses.

So far, 60,000 people have claimed rewards, and Blanco said the program has enough money to pay for about 90,000 claims. That will fall well short, however, of the approximately 160,000 claims that will be eligible.

Andy Kopplin, executive director of the Louisiana Recovery Authority, said the $3.3 billion would be enough to cover the gap if Congress also approves waivers allowing the $1.7 billion in hazard-mitigation money to be used on housing. The state of Louisiana has provided an additional $1 billion.