Ensure New Orleans locals can get recovery jobs

New Orleans City Council passes ordinance setting goal for reconstruction jobs to go to local businesses

Updated: Tuesday, January 12th, 2010 | By Robert Farley

On June 18, 2009, the New Orleans City Council unanimously passed an ordinance establishing an overall goal that locally owned businesses would get 50 percent of all public spending or private projects that use public funding or incentives for reconstruction.

"Small businesses are the backbone of any strong economy, especially socially and economically disadvantaged small businesses," Council President Arnie Fielkow said. "If this city is to reach its full potential, we have to lift up all communities, all cultures, all races. "

Said council member Cynthia Hedge-Morrell: "This measure is long overdue. Supporting our local and disadvantaged businesses will allow taxpayer dollars to remain in the community, where it can circulate and maximize the positive economic impact. By ensuring our public dollars go to our neighbors, we can continue to foster growth in our strong local economy."

The ordinance essentially codifies a set of goals first adopted by New Orleans Mayor Ray Nagin in September 2006.

Despite the ordinance, however, some local officials say the real test will be how vigorously the city enforces them. Under Nagin's executive order, the New Orleans Times-Picayune reported, enforcement was spotty.

Asked about this promise, Obama administration officials pointed to the economic stimulus package championed by Obama, which has funded 65 transportation projects in Louisiana – including 42 highway construction projects – obligating nearly $299 million to jump-start "shovel ready" projects. In Orleans Parish, 22 highway and transit projects have been approved, obligating more than $50 million to fund highway and transit projects. While these projects have surely created jobs, we could find no evidence of efforts to ensure those projects are related to reconstruction from the hurricanes, or that they be done by local or small businesses.

Still, the New Orleans City Council ordinances is a step in that direction. It's unclear what, if any, influence the Obama administration had on that ordinance. And some have expressed concern about enforcement of the law. But we think there enough to move this Promise to In the Works.

Sources:

New Orleans City Council Web site, Regular Meeting Summary, June 18, 2009

Times-Picayune, "New Orleans City Council sets goals for 'disadvantaged' businesses," by Bruce Eggler, June 19, 2009

Times-Picayune, "Nagin issues city-work mandate: Minority-owned, local firms get help," by Laura Maggi, Oct. 3, 2006

Thomas, The American Recovery and Reinvestment Act of 2009