Unspent 2005 recovery money prompts criticism of Louisiana in US Senate

Five years later they have still not spent the Recovery money in the Gulf? These same people had a lot to say about the slow reaction of the Federal Government, but they have topped them. While FEMA moves at a very slow pace, even they move faster than the Gulf Coast states. Any money after five years not spent, should be returned to the Federal Government. Wait -- that would give Obama more money to waste so that it is not a good idea.

Five years to spend emergency funds does call into question whey they were deemed 'emergency' in the beginning.

In one sentence LA spokesman says the funds have been allocated already while in the next sentence they want to perhaps start a new housing program -- which is it -- funds are allocated or not.

Think Dr. Coburn (R-OK) needs to request a full accounting from all the Gulf States that received 'emergency funding' on where they spent our tax dollars -- we are confident waste is prevelant in the spending of 'emergency' funds. Under the former Governor, LA kept losing the money from the fund to help homeowners and couldn't find it.

Unspent 2005 recovery money prompts criticism of Louisiana in U.S. Senate
Published: Friday, June 18, 2010, 7:45 AM Updated: Friday, June 18, 2010, 9:36 AM
Bruce Alpert, Times-Picayune

WASHINGTON -- Louisiana has spent only 77 percent of the emergency community development block grants approved for housing needs after the 2005 hurricanes, and other Gulf states have an even lower percentage, prompting questions by an Oklahoma senator on whether the money can really be defined as "emergency."

Sen. Tom Coburn, the top Republican on the Permanent Senate Subcommittee on Investigations, who requested the funding data from the Department of Housing and Urban Development, said taxpayers "would likely be surprised to find out a portion" -- about $3 billion -- of the $13 billion allocated to Louisiana after Hurricane Katrina "remains unspent."

Christina Stephens, spokeswoman for the Louisiana Recovery Authority, said that "the bottom line is that we've spent the lion's share of our recovery funds over the past four years under very difficult circumstances."

In a letter to Housing and Urban Development Secretary Shaun Donovan, Coburn said that while the federal government rightly allocated "significant federal resources" to the "unprecedented damage to the Gulf Coast, serious questions need to be asked about whether this money was appropriately designated as emergency funding."

Coburn spokesman John Hart said the report on unspent 2005 hurricane emergency funds raises the "broader issue of government's inability to respond efficiently to emergencies."

"It' more relevant than ever," he said, alluding to the ongoing crisis with the BP oil spill.

Hart said it also raises the question of whether, with growing deficits, Congress and the Obama administration ought to use some of the unspent hurricane emergency money to meet some of the nation's current spending needs.

But Stephens said "calling these funds surplus is completely wrong."

"They're all programmed in various purposes in accordance to our federally approved action plan amendments," she said.

Moreover, she said, Louisiana didn't receive all its emergency block grant funding in 2005. It received the money in three installments, she said, with the last one not coming through until November 2007.

"It was a pretty hard slog to get the funds we have now," Stephens said.

According to the HUD report provided to Coburn's staff, Louisiana has disbursed $10.365 billion of the $13.4 billion allocated by the federal government in emergency block grant funding, or 77.3 percent. By comparison, Mississippi has spent 62.8 percent of its $5.4 billion allotment; Alabama, 75 percent of the $95 million provided, Florida only 38.2 percent of the $183 million provided, while Texas spent only 56.5 percent of its $503 million.

Stephens defended the state's distribution of emergency community block grant funding, which has spanned two administrations, Democratic Gov. Kathleen Blanco's and Republican Bobby Jindal's.

"Our recovery from Hurricane Katrina and Hurricane Rita has been complicated by two new hurricanes in 2008 -- Gustav and Ike -- and the national economic meltdown," Stephens said. "A poor economy nationwide means that homeowners can't always get financing to complete rebuilding and that private investment is slow in some other recovery projects."

"Many of our rebuilding funds are leveraged against sources of financing. If that financing doesn't come through, then our funding can't be spent. And, of course, the BP oil spill in the Gulf of Mexico isn't helping things in Louisiana."

She said there also is a labyrinth of federal regulations about using HUD funds vs. Federal Emergency Management Agency funds and "wrinkles" in the Stafford Act, which dictates federal government's response to disasters.

"I assure you, all of our funds are obligated to a purpose and in the process of being spent on securing Louisiana's long-term recovery from the terrible devastation of 2005," Stephens said. "No one wants our recovery to be complete more than we in Louisiana do."

Louisiana hopes some of the unspent funds can be used to launch a program for residents who have unmet housing needs.

Excerpt: Read more about misuse of tax dollars at NOLA.com