Gov. Blanco's speech to the Louisiana Legislature

Mr. President, Mr. Speaker, distinguished members of the legislature, Mayor Nagin, parish presidents, council members, and distinguished guests: it is an honor to be here in New Orleans tonight.

Let me begin by reflecting upon the contributions of Coretta Scott King, a woman who stood for the dignity of all humanity. Her life will be celebrated in Atlanta tomorrow. Her courage reminds us that even in the darkest hours, there is a great hope for the future. My husband, Raymond, and I extend our condolences to the King family.

Louisiana has weathered the largest natural disaster in American history. The tragedies unleashed by Hurricanes Katrina and Rita have challenged us. But we are witnessing a resurrection. We are a people of faith and hard work. We are rising together to build a safer, stronger and better future.

I asked you to come to New Orleans in an historic meeting of this legislature, just as I continue to ask every member of Congress to see the devastation. Tonight marks the first time in 125 years that our legislature has met outside of Baton Rouge. These families, these homes, these images that stretch across coastal Louisiana are the reasons we are here.

I appreciate the efforts of the Women of the Storm and others to convince Congress to visit us. To understand the scope of this catastrophe is to see it.

You may have noticed last week that President Bush, in his State of the Union speech setting the nation's priorities for the year, said so little about a tragedy so great. I noticed. I was there. And that signal worries me.

The harsh reality is that for many people in Washington, Katrina is yesterday's problem and Rita never happened. We are asking Congress to understand that Rita did to Southwest Louisiana what Katrina did to Mississippi.

Public opinion polls are telling lawmakers that the nation has moved on and what happened to the Gulf Coast is yesterday's news. I know you will agree with me that the long-term stability of our region is far more important than the instability of public opinion polls.

Did we poll the decision to invest in the Marshall Plan and rebuild Europe after World War II? Of course not. Our leaders just did the right thing.

I am holding their feet to the fire in Washington, and this is not about party politics. It's about our people. To all of our people who are still displaced, I want to assure you that our number one priority is to bring you home.

We must fight so that families in Gentilly, Lakeview, New Orleans East, the Ninth Ward and Chalmette will be able to return.

We must fight so the young couples trying to restore their flooded homes in Metairie, Kenner, LaFitte, Slidell, or Grand Isle whose insurance company left them at the door empty handed will recover.

We must fight so the elderly widows in Bogalusa, LaFourche, Terrebonne, Iberia, Plaquemines, Delcambre, or Erath will be able to repair the homes they loved all their lives. And we must fight so the total devastation of Cameron, Calcasieu, Vermilion and other Southwest parishes will see a new day.

Those who plow and fish to feed the nation, and labor on the offshore oil rigs to power our country may be forced to give up the struggle to stay in business.

They will never recover from the loss of their homes, their farms, their schools, their churches, their hospitals or their businesses if we don't fight for them.

We had all better put Louisiana politics aside and worry about Washington politics or our people and our state will lose. Anyone who wants to sacrifice the good of our people to politics and cronyism needs to rethink their actions. Louisiana can no longer tolerate the perception that you must pay to play if you expect to do business in this state. We must put the sins of the past behind us and use our recovery as an opportunity to earn the trust and confidence of the nation.

Over the next 11 days, I am asking you to overhaul problems that have begged for reform for generations. If we love our state - and I know we do - the time to act is now. I am asking you to address, head-on, four bold actions:

Consolidate levee boards to strengthen our security and restore confidence in our levees; Create a housing trust to move families back into their homes; Reorganize New Orleans government for efficiency and accountability; and Establish the Louisiana Recovery Authority by law.

First, let us secure our communities by strengthening our levees. The levees are federal levees.

It is inexcusable that our people - hardworking and patriotic American taxpayers - were asked to entrust their lives and property to a worn and broken system. We must replace false security with a reliable 21st Century hurricane protection system based on today's engineering and technology.

The state has a responsibility, too. As the Citizens for 1 Greater New Orleans know, if we expect Washington to make the lasting investment to rebuild the federal levees, then we must do our part.

You approved the Coastal Protection and Restoration Authority. The CPRA is charged with overseeing levee boards statewide and developing a master plan for coastal and flood protection. Now let's take the next step.

By consolidating the levee boards in Southeast Louisiana, we have an opportunity to improve the oversight and maintenance of hurricane protection levees. Some levee boards work better than others. Some have diverted attention away from flood control to various levels of corruption and cronyism.

The people of Southeast Louisiana want and deserve a single levee board run by professionals devoted exclusively to flood protection.

There is 12 million dollars in federal money we risk losing if we fail to consolidate those levee boards. I'd prefer not to give that federal money to some other state.

Second, we must rebuild our homes. I am asking you to design a Louisiana Housing and Land Trust Authority to help people return. Congress gave us 6.2 billion dollars in Community Development Block Grant funds.

We're eligible for 1.5 billion dollars in FEMA mitigation funds. We need these funds to address infrastructure, housing and economic development priorities. We will get these funds directly into the hands of our homeowners and communities as they become available.

Let me tell you my plan for investing the 7.7 billion dollars Louisiana has been allocated for Block Grant and Hazard Mitigation Funds:

4.6 billion dollars will help Louisiana homeowners repair, rebuild, or relocate their homes;

1.75 billion dollars will bring back our hospitals, schools, and utilities, like our sewerage and water systems; and

350 million dollars will grow jobs with bridge loans, workforce training, and other business incentives.

Although we appreciate this funding, it only covers half of our housing needs. It covers less than half of our infrastructure losses. And it doesn't come close to providing the resources we need to recreate the 200,000 jobs the storms destroyed.

Our state suffered well over 75% of the housing damage from Katrina and Rita, as compared to neighboring states. We had ten times more businesses destroyed. We had five times more jobs lost. And we weathered more than 75% of the total property and infrastructure damage caused by the storm. However, we received only 54% of the block grant funding.

Congressman Richard Baker created a solid proposal that would make up the difference. It enjoys the bipartisan support of our entire Congressional delegation. As you know, the White House tried to blow this solution out of the saddle. This is second-class treatment. Our people who lost everything are not second-class citizens. They deserve an equitable solution. We will continue to fight for a fair hearing.

While in Washington last week, I met with White House officials to ask: "If not the Baker plan, then what?" They agree. Our people suffered a disproportionate loss and will be slighted in terms of assistance. But they have yet to show me an equitable solution. This is why I ask you to enact our version of the Baker plan at the state level now.

Our plan is not designed to replace the Baker Bill. We don't have the means to do that. But let's put the infrastructure in place while we continue to work for passage of the Baker bill. Our delegation is also asking the President to include additional block grant funding in his Supplemental Appropriations Bill.

Third, let us right-size New Orleans' government. This is painful for some. But life has changed dramatically. We have an almost insurmountable mountain to climb. New Orleans has always enjoyed being the exception to the rule. The sad truth is that those exceptions have not always served New Orleans well.

Finally, I urge you to statutorily establish the Louisiana Recovery Authority. The LRA works in partnership with this legislature, as do other state agencies. It has worked in Washington to help secure funding for our recovery. The LRA has represented Louisiana well. It's work must continue in order to advance long-term recovery solutions.

I will also be asking you in the Special Session to enact legislation that will:

Protect the fundamental voting rights of our citizens; and Elevate the Director of the Office of Emergency Preparedness to a position that reports directly to me.

Reforming the New Orleans public schools; Shrinking the state budget to reflect our new reality; Improving our hurricane protection system, and enacting the first-ever statewide building codes.

Louisiana is fighting for 50% of the oil and gas royalties from off-shore drilling. We need this money to finance a comprehensive hurricane protection and coastal restoration system. The two storms melted 100 square miles of coastline into the sea. Our fragile environment changes the way we do business.

If no effort is made to guarantee our fair share of royalties, I have warned the federal government that we will be forced to block the August sale of off-shore oil and gas leases. Industry leaders understand our predicament. It's time to play hardball, as I believe that's the only game Washington understands.

Tonight we meet in the world-famous Ernest N. Morial Convention Center. Some question why. I say, "Why not?" This extraordinary building housed many people waiting to be evacuated during the traumatic week of Katrina. To begin the process of normalcy, we cannot shy away from what happened.

We will conquer the memories and tell the stories of survival to our grandchildren. This Convention Center represents the lifeblood of this city. It has received hundreds of millions of international visitors and will do so again. It is central to New Orleans' recovery. And I say that being here is just what the doctor ordered.

Our greatest hope for the future is that our people find their way home. I see a bright future for Louisiana that restores our rightful place in the nation's trade and energy economy. I see a day when we return to the progress made before the storm.

Two years ago, the 2003 elections brought you and I together to carry Louisiana into a new century. In that two-year period, we put a new face and a new image on Louisiana. We reduced taxes on businesses and raised ethical standards. We recruited 3 billion dollars worth of new manufacturing business, and thousands of new jobs.

We are number one in teacher accountability. Children's test scores are rising, and we are improving health care services. I promise you that we will reclaim this progress and build upon it. Standing together, we can lead Louisiana to a future that is safer, stronger and better than before.

Texas state waters extend further into the Gulf than Louisiana's. That's true, and it's always been true. Same with Florida.

But it's only about 6 miles more.

In the 60 years since offshore production began, the close-in stuff has mostly been found and produced, so it's a fairly moot point.

But somehow this historical difference of six miles of jurisdiction is used as justification for Louisiana now demanding 50% of the royalties out to the extent of US federal territorial waters.

It's a leap in logic that one can't honestly make.

You didn't read the articles did you?

There's equity: Coastal energy producing states like Louisiana aren't getting a fair shake compared to inland states that get 50 percent of the revenue from minerals extracted from federal lands within their boundaries. Louisiana has an especially poor deal. While Texas and Florida get 100 percent of the revenue from production 9 miles in the Gulf, Louisiana has control over only the first three miles and gets 27 percent of the revenues from drilling from 3 to 6 miles out. After that, Louisiana gets nothing.

Ha ha, and you accuse me of not reading the articles you linked yourself.

Louisiana wants 50% extending out to edge of the continental shelf, some 200 miles offshore. Not six miles. 200 miles.

Texas and Louisiana have state waters extending further out than Louisiana because they came in under Spanish law which had previously established those state offshore boundaries prior to admittance to the union.

And I'll point out that there is very little federal land in Texas for the US government to split royalties with the state 50/50. It's mostly in private hands, and the state only gets a piece of production through ad valorem taxes, far less than 10% of the value.

http://www.nola.com/news/t-p/frontpage/index.ssf?/base/news-5/113886577878520.xml

Why the disparity..... did you read the article you linked?

Here' the article's version;

...
The Truman administration initially offered Louisiana control of the first three miles off its shores and a share of royalties beyond that. But, according to Sen. Mary Landrieu, D-La., Plaquemines Parish boss Leander Perez demanded all of the royalties or nothing -- and the state got nothing.

Under mounting pressure in 1953, Congress gave coastal states the rights to the waters up to 3 miles off their coasts. Texas and Florida were given control of about 9 miles in the Gulf of Mexico because they had established those boundaries before becoming states.
....

As far as the inland quote you provided in another post.... that's apples / oranges to the discussion of offshore lands.... none of which are inland to any state.

"Texas and Florida were given control of about 9 miles in the Gulf of Mexico because they had established those boundaries before becoming states."

So had Louisiana...

From the “History of the Offshore Oil and Gas Industry in Southern Louisiana Interim Report, Volume I: Papers on the Evolving Offshore Industry”, Page 39

link address is :

http://www.gomr.mms.gov/homepg/regulate/environ/studies/2004/2004-049.pdf

“in August 1954, Louisiana’s state legislature had asserted those rights by passing a statute, Act No. 33, which redefined the states’s seaward boundary as a maximum of three leagues beyond the coastline, as described in the act of admission of Louisiana to statehood and union. The novel aspect of the legislation was the definition of the coastline, which the state argued was the dividing line between inland waters and the open sea as determined by the Coast Guard and authorized by acts of Congress in 1807 and 1895. The Coast Guard fixed lighthouses and buoys along this line, as the U.S. Department of Justice pointed out, for navigational purposes, to determine where ships changed from rules for the open sea and to rules for inland waters.”

Why there is a current descrepancy between the Texas and Florida limits and the Louisiana limits is beyond me. All coastal states should be treated equally under the law.

I wasn't aware of that part of Louisiana history, and I don't know why it wasn't able to maintain the three league limit to state waters upon admission.

Texas had a different bargaining position as it was an independent nation seeking admission to the union on its terms, which is why the only federal land in Texas is land that was sold to the US Government (unless some land was condemned for interstate highways).

However, arguing the three league limit is a far different matter than arguing for proceeds 190 miles further out to sea than that.

I think they're all three miles, with the exception of Texas and Florida, which are three leagues or about nine miles.

One interesting aspect of Louisiana coastal erosion is the fact that the state is now claiming land that was private landowners property.

It's happened to my company, and it potentially involves the shift of millions of dollars of royalty revenues for wells drilled onshore near the coast.

The flip side for Lousiana is that it also shifts the federal boundary three miles from the new subsea lands they are now claiming.

You'll find a complete detailed explanation of all of the states claims in legal cases. It will answer every question you might ask.

http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=us&vol=363&invol=1

Basically, Louisiana got screwed by the feds. Here's an excerpt...

"Louisiana's claims, like those of Texas, are based on the contention that it had a three-league maritime boundary which existed "at the time" it was admitted to the Union, and must be judged by the same standards.

The Act of Congress admitting the State to the Union in 1812 107a described the new State's boundaries as follows:

"beginning at the mouth of the river Sabine; thence, by a line to be drawn along the middle of said river, including all islands to the thirty-second degree of latitude; thence, due north, to the northernmost part of the thirty-third degree of north latitude; thence, along the said parallel of latitude, to the river Mississippi; thence, down the said river, to the river Iberville; and from thence, along the middle of the said river, and lakes Maurepas and Ponchartrain, to the gulf of Mexico; thence, bounded by the said gulf, to the place of beginning, including all islands within three leagues of the coast . . . ." (Emphasis added.)

Louisiana claims that the concluding clause "including all islands within three leagues of the coast" should be read to mean that Congress fixed as the State's seaward boundary a line three leagues from its coast, and that such a reading is supported both by the State's preadmission history and by subsequent events.

The Government, on the other hand, insists that the phrase includes only the islands themselves lying within three leagues of the coast, and not all waters within that distance as well."

Texas had other treaties and documents to back up it's claims. Unequal treatment is the net result.

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