With an estimated 217,245 homes sustaining damage in Louisiana last hurricane season – from both Katrina and Rita – there is an obvious need for timely action. But five months later, Congress is still bickering about what plan of action to take in an attempt to restore the Gulf Coast. Hundreds of thousands are still displaced after Katrina ravaged New Orleans, and without something to come home to, these people will never be able to return home.
Enter the Baker Bill.
Rep. Richard Baker, R-Baton Rouge, proposed the bill which would create the Louisiana Recovery Corporation in an attempt to give these displaced victims some options and a shot at renewal. The bill would give the corporation authority to use $30 billion from U.S. treasury bonds to buy the damaged homes; the homeowners in return would be guaranteed at least 60 percent of their homes’ equity, which would be paid back through private investment by the redevelopment of the properties.
Sounds like a great plan, right? Enter President Bush.
On Jan. 24, the administration spoke out against the Baker Bill, and the fur flew. Bush claims that the bill adds an unnecessary layer of bureaucracy by involving private investors in the restoration of the Gulf Coast. He instead stands behind the Community Development Block Grants – a “more direct approach.” Bush believes that the $6.2 billion available through these grants will be enough for Louisiana’s recovery.
There’s no way of knowing how much money will be legitimately needed to care for the droves of former Louisiana residents turned nomads last hurricane season, but one-fifth of the money requested by Baker won’t do the job. According to the Lafayette Daily Advertiser, the storms destroyed more than 200,000 homes in Louisiana and approximately 68,000 in Mississippi. Relief to Mississippi was approximately $5 billion, which gives Mississippi enough to spend $115,000 on each of its nearly 35,000 displaced homeowners. In comparison, Louisiana had roughly 77,000 damaged households who lack the insurance to rebuild.
If the measure of what Mississippi received in federal assistance per damaged household is the cost of recovery, then $6.2 billion is nowhere close – if we were to apply Mississippi’s federal assistance granted by the Bush administration to Louisiana’s damages, we would need $9 billion of assistance for homes alone.
Though the Baker Bill had its faults – admittedly, it overestimates the cost of rebuilding – it was a start. Now, a middle ground is necessary. Our president must realize this and work toward collaborating with whatever organizations necessary to provide realistic federal relief to Louisiana.
