Louisiana Senators Propose $250-Billion Katrina Reconstruction Package

http://archrecord.construction.com/news/daily/archives/050923senators.asp ^ | 9/23/2005 | econjack

[econjack]

Louisiana Senators Propose $250-Billion Katrina Reconstruction Package, Other Lawmakers Seek Offsetting Cut

September 23, 2005

Louisiana's Senators, Mary Landrieu (D) and David Vitter (R), have proposed legislation to provide about $250 billion in federal aid to help their state rebuild from Hurricane Katrina. The massive, 10-year plan, contained in a bill introduced on Sept. 22, includes about $180 billion in direct federal spending, Vitter said. The rest would represent the cost of various tax breaks.

But Sen. Tom Coburn (R-Okla.) and several other GOP colleagues want at least some of the federal hurricane relief spending to be offset with spending cuts. Among their suggestions: a 5% across-the-board cut in discretionary spending other than defense and homeland security; and rescinding $24 billion in earmarked highway projects in the recently enacted highway and transit authorization bill.

Already, Congress has approved $62.3 billion in post-Katrina relief aid for Louisiana and other Gulf Coast states. The Office of Management and Budget has said it further spending would be requested.

The Landrieu-Vitter package would draw most of its funds from federal appropriations, but they also are seeking 50% of the revenue from oil and gas leases off their state's coast. Vitter says that 50% share of lease payments recently has ranged between $3 billion and $4 billion annually. Those revenues would go for restoration of coastal wetlands and barrier islands as well as infrastructure.

The energy bill signed into law in August provides Louisiana with $135 million in oil and gas lease revenue annually for four years to be used for coastal restoration work.

The new plan also includes more than $16 billion for transportation, of which $2.9 billion would be emergency relief aid to repair highways and other infrastructure; and $50 billion in Community Development Block Grants "to provide disaster relief and promote long term recovery" in the affected area, according to a summary of the bill prepared by Landrieu's staff.

There also would be $40 billion that an envisioned new "Pelican Commission" would use for Corps of Engineers hurricane and flood protection, coastal restoration and navigation projects."

Landrieu says she recognizes that the sum she and Vitter are seeking is large, but she says of the hurricane's aftermath, "It's not a local problem. It's not a state problem. It's a national tragedy and it needs an unprecedented national response."

The legislation also would allot $150 million to the National Park Service for historic preservation grants "to owners of historic structures and artifacts affected by Hurricane Katrina," says the bill summary. The non-federal matching share for the grants will be 25%, instead of the usual 50%.The non-federal match could be cash or services, labor or equipment. The program would be administered together with the State Historic Preservation Office and National Center for Preservation Technology and Training in Natchitoches, La.

In addition, the measure would provide $30 million to the Park Service for preservation grants for National Historic Landmarks, plus $8 million to technical assistance and training for people who want to restore historic property, and $20 million for the Trust's preservation services.

[Uncle Sham]

"What you don't seem to understand is that the "value" to the nation is whatever the nation says it is. That's how a free market works. Your opinion is nothing more than that. Your opinion."

The fact that you are having to pay more money to tank up your car is not my opinion. The fact that your check doesn't buy as much due to Katrina is not my opinion. The fact that you challenged me to a "tit for tat" debate about the value of Louisiana compared to other states is not my opinion. That you are apparently unable to provide your half of this arguement is not my opinion. It is a fact. BTW, what state of value do you live in?

[Uncle Sham]

Louisiana has housed more than it's fair share of government "cattle". Do you realize how difficult it is to elect honest politicians when the've had such a large herd to offer hay to? Other states, who haven't been blessed with these massive herds have no idea how hard it is to effect change. Perhaps with these relocations, those of us who've been fighting the fight can finally take over the controls. I don't like the present powers that be in charge of anything, much less the money for rebuilding. My arguement is that the cost to the nation of rebuilding is far less than the cost of not doing so. You seem to agree.

[econjack]

"Coastal erosion caused by the existence of offshore oil and gas production." Uhhh, can you show me the statistics that prove this point and show the link of causality between that and this thread?

"U.S. consumers should be held accountable for the restoration of property damaged due to their consumption." So...you're saying that my consumption of LA gas somehow caused the levee that was in disrepair because a bunch of people spent my tax funds poorly is my fault? I don't think so. If my acts of consumption impinge on someone else's property rights, there's a legal system in place to weigh the evidence and place a judgement. At least I'd have a way to defend myself. You approach assumes guilt with no evidence to support your argument.

As to the number of wells drilled in the mid-90's, in a free market low prices SHOULD cause fewer wells to be drilled. Indeed, if we had been smart, we should have told Ike in the 1950's to ignore the protectionist arguments about not trusting "unreliable mid-East oil sources" and remove the oil import quotas, capped our own wells, and sucked their ten-cents-a-barrel wells dry. After we sucked their wells dry, we could then uncap ours. This is the way the market should have worked, but some politicians in LA lobbied Ike to impose oil import quotas. I trust the free market a hell of a lot more than I trust politicians.

I don't think I missed a thing...

[econjack]

Believe me, I'm on your side and I sincerely hope the citizens of LA rise up in a single voice and demand true accounting of the errors and oversight that has be rampant there for years.

I wish you well on your quest...

[JohnD9207]

How many casinos and brothels can you build with 250B????


Not one cent invested on this bill to construct a city BELOW SEA LEVEL!!!!! The casino folks and state can reconstruct anything below sea level.

[SauronOfMordor]

It's not economically viable to this nation or your pocketbook to not rebuild and protect a port near the mouth of the Mississippi River. End of Story.

You chose to ignore the second paragraph of my posting.

The Port is necessary. Housing within a reasonable commute of the port is necessary. That does not necessarily mean that all of New Orleans is necessary.

Most specifically, it does not mean that housing for the welfare class in New Orleans is necessary or desirable.

The housing necessary for the personnel of the Port of New Orleans can be built on the sections of New Orleans that are not so far below sea level as to constitute a prohibitive expense. If the full cost of maintaining a levee system is reflected to the residents via property taxes, plus the actual risks of living there are reflected via free-market-priced flood insurance, then rational decisions can be made as to what parts of NOLA can be restored (with perhaps landfill raising them above sea level), and what parts can be left as lake

[Sunsong]

You have said nothing new. You are choosing to take an extreme position and a pseudo communist one. It will not prevail.

You would be wise to re-read the opinions of your fellow Americans and develop some humility. Louisiana does not have much "value" to most of us. And your opinion even less.

Perhaps you do not comprehend the oh so obvious reality - that the more offensive and arrogant you are - the less likely others will feel compassion for you?

[Uncle Sham]

Communism probably wouldn't care if New Orleans was fixed. Capitalism demands that it be fixed. You say that Louisiana has no value to you. Your own state apparently has no value to you, you've not given it and it doesn't exist on your home page. You challenged me to debate this issue but have refused to participate. I can only conclude that you know nothing about values of any kind unless they relate to your own selfish existence.

You are not unlike those government cattle types who constantly live in a what can you do for me state of mind. I've done something for you. I've told you the truth about yourself. It isn't pretty.

[Sunsong]

You do not understand value. Value is determined by the market - not by you. You are free to be as arrogant and offensive as you choose. But you would be wise to be more humble and grateful that Louisiana and New Oleans receive any support at all.

[Uncle Sham]

Help and support such as yours is neither needed or appreciated. You are a first-class jerk.

[Sunsong]

As I say, you are free to be as much of a jerk as you choose to. Perhaps that is all you know how to do.

I am happy to keep this going as long as you want - you are making the case for me that for Louisiana to demand $250 billion from the tax payers is a joke. Just keep talking...

[YoungBlackRepublican]

Why not just round it off and make it an even zillion?


Lol..this would be funny if it weren't almost freggin true....it's like Rush said...they are are tripple dippin!

[YoungBlackRepublican]

"Why in Gods name are the taxpayers responsible to rebuild some one elses' private property? "

That's a cold calculated question....GREAT QUESTION! One i've been asking myself for about a week now. But it's so insensitive and non-PC to ask it.

[XEHRpa]

You don't know jack about economics if you think New Orleans is capable of taxing it's citizens and tourist enough to protect itself.

I think you have given the answer. There should not be a city there. If there is the need for a river port at that location, then build a river port facility, and man it like an offshore oil rig. It is insanity to build a city below sea level, and it only adds insult to injury when you ask the nation to pick up the tab!

[XEHRpa]

Why in Gods name are the taxpayers responsible to rebuild some one elses' private property?

According to Fox's Judge Napolitano, he says it is unconstitutional for the feds to rebuild private property. When asked about the precedent of FEMA in other hurricanes, he says, "it has never been brought to the test in federal court."

[Tarpon]

You simply miss the point, the slum lords need to get the voters back on the plantation -- the taxpayers are just being asked to do the upgrades.

Watch carefully over the next months as the truth floats out of the swamp.

If it were me, I would bulldoze the whole state and give it back to the ducks.

[IamConservative]

Does anyone know if the areas below sea level in NO were considered to be in the flood plane and subsequently eligible to buy flood insurance from the fed?

To your point: Why in Gods name are the taxpayers responsible to rebuild some one else's' private property?

Why wouldn't victims of the hurricanes in Florida last year be able to get a class action lawsuit together and sue for reimbursement? Equal protection..??.. How "bad" does a disaster have to be to get a handout? If a tornado destroys one house and kills to out of four occupants, how does a disaster get worse for that family?

This federal spending compensating individuals for being victims of natural disasters is bad government. I thought that about the big cash payouts for 9/11. State and local matter, not federal.

[jslade]

I fail to see why the rest of US should pay for something that you've already been given the money to fix.

Amen to that bro.

[econjack]

I fear you are right.

The whole issue of federal funds to fix private property really bothers me. As a grad student a bazillion years ago I read a book titled "An Economic Interpretation of the Constitution" by E. Cary Brown. It profoundly affected my thoughts about the role of the Federal govt in the marketplace. In a nutshell, it says the only legit role for the Federal govt is in providing "social overhead capital", or those things the private sector won't provide but society needs (e.g., a legal system, national defense, etc.) It should not be in the package delivery business (USPS), banking (SBA), or insurance (flood).

I think bailing out private citizens who failed to adequately insure their own private property should shoulder the consequences of their folly themselves. As to repairing the infrastructure, that should be paid with state funds, perhaps bonds, so that the true cost of living in LA is reflected in their tax structure. As it stands now, I don't believe that's the case.

[econjack]

I think these are good questions...ones that all of us need to think about. Personally, I fail to see why my money should bail out some private citizen in FL, LA or anywhere else just because they didn't insure it adequately (or at all). We have the occasional flood and tornados here in IN and I don't see FEMA or any other federal agency throwing money at our private citizens.

I vote for private insurance of private property and a tax structure that reflects the true cost of living in one's area of choice, including its stock of social overhead capital. I think the citizens of NO have been kidding themselves about the true cost of living below sea level for at least 5 decades and they need to fix things themselves.

I heard on Bortz last Friday that $M was sent to NO in 2003 for "levee improvements". Of that sum, Nagin says $M was paid to 19 contractors for work on the levees. Only problem: He has no receipts for any of the contractors, nor does he "recall" their names. Further, there is no physical evidence that any work was done on the levees. And now we are supposed to think that throwing $250 BILLION their way is a good idea! I don't think so...