Shake loose federal money for rebuilding the Gulf Coast

Praise from unlikely sources

Updated: Monday, August 31st, 2009 | By Robert Farley

The Obama administration has drawn positive reviews from unlikely sources with regard to this promise.

An Aug. 27, 2009, Associated Press article says Gov. Bobby Jindal, R-La., credited Obama's team with bringing a more practical and flexible approach to federal aid for the Gulf Coast region. Doug O'Dell, former President George W. Bush's recovery coordinator, talked about the Obama administration's "new vision" and said: "What people have said to me is that for whatever reason, problems that were insurmountable under previous leadership are getting resolved quickly."

On Aug. 24, the Federal Emergency Management Agency and the Louisiana Recovery Authority announced that total public assistance funds obligated for Louisiana recovery projects since Jan. 20, 2009, now exceed $1 billion. According to the White House, this money will go to schools, fire and police services, sewer and water systems and infrastructure.

"FEMA is working closely with our state and local partners to push money down into the hands of locals as quickly as possible," said FEMA's Louisiana Transitional Recovery Office acting director Tony Russell. "Our recent funding reflects these efforts to provide tremendous support so that projects can move toward completion."

So what has the Obama administration done differently?

"They are reading the FEMA regulations more liberally," said Allison Plyer, deputy director of the Greater New Orleans Community Data Center. "That has helped to shake loose some federal money."

For example, the administration recently reversed a FEMA rule that prohibited building fire stations and other projects in flood zones. They have allowed lump sum payments to projects with master plans. And in early August, Homeland Security Secretary Janet Napolitano announced an independent arbitration process to expedite resolution of outstanding, big-ticket public assistance projects. That puts a 60-day resolution timeframe on resolving longstanding disputes over projects like Charity Hospital, where state and federal officials have big disagreements over replacement costs.

Louisiana officials say it has helped that New Orleans has been visited repeatedly by some of the Obama administration's top officials, including Napolitano and HUD Secretary Shaun Donovan. According to the Times-Picayune, half of Obama's Cabinet has visited the Gulf Coast in the first six months of his term, with 19 senior administration officials making a total of 30 trips to the coast, 20 of them to Louisiana. And Obama said recently that he will visit New Orleans before the end of the year.

"There seems to be high level people working in significant ways," Plyer said. "They are trying to come up with solutions that all of us have been struggling with for three and a half years."

According to the White House, new dispute resolution teams have cleared 73 projects, including fire and police stations, health clinics, libraries and university buildings.

"We have seen an increase in payments for some of the most difficult problems with FEMA public assistance money," said Christina Stephens, spokeswoman for the Louisiana Recovery Authority.

There's still far too much work to do in New Orleans to rate this a Promise Kept. However, there has been enough progress to say it's In the Works.

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