FEMA bill would bankrupt Louisiana, undermine recovery

FEMA bill would bankrupt Louisiana, undermine recovery

A bill from FEMA for almost half of Louisiana's annual revenue is unrealistic, unpayable and insulting.

Apparently our federal relief agency has failed to realize the enormity of the financial disaster this hurricane season has been for Louisiana, just as it was slow to realize the scope of the physical disaster when the storms hit.

FEMA projects it will spend more than $41 billion on the state's recovery, and wants us to pay back 25 percent of what it spends.

That comes to $3.7 billion (or maybe more, according to some economists) and represents just under half of the $8 billion the state has to spend each year when there are no hurricanes to undercut our tax base and wipe out our economy. It is silly to think that a state that was struggling to make ends meet before the storms can come up with that kind of cash.

Worse, with that kind of bill hanging over our heads, Louisiana will be distracted at best and disadvantaged at worst as we try to rebuild. Would you bring your business back to a state that the federal government apparently intends to bankrupt?

Would you be willing to buy bonds or provide financing that Louisiana needs to rebuild infrastructure when a multibillion-dollar federal bill is hanging over the state?

John Alario, chairman of the House appropriations committee, had his tongue only halfway in his cheek when he told fellow legislators, "We may have to send them a telegram, 'Don't send us any more help, we can't afford it.' "

Louisiana needs every penny it can scrape up to meet immediate needs. It will need every penny it can scrape up far into the future to overcome the economic setback caused by this summer's storms. That scraping must include federal aid that comes without strings attached.

Congress can enact legislation to forgive Louisiana's debt, and there is a precedent. New York was given a free ticket after the 9/11 disaster. We suggest that the disaster in New Orleans is more widespread, more destructive, and will have a greater impact on the nation's economy as a whole.

Gov. Kathleen Blanco asked in September that the federal government pick up 100 percent of the recovery cost. The only answer so far has been the FEMA bill.

We urge former Sen. John Breaux to help resolve our financial difficulties, and we particularly urge our congressional delegation to speak out loud, long and clear to let everyone know billing Louisiana for FEMA's response is simply not acceptable.

It would be unacceptable had FEMA done its work expertly and quickly. It is especially unacceptable after FEMA's uncoordinated, unaccountable, and haphazard response. Boondoggles are expensive and we should absolutely refuse to pay for this one.

State Rep. Hoppy Hopkins hit the nail on the head in his reaction: "What are we going to do if we can't pay them back - give them New Orleans? We don't know how we're going to get through this year's budget, and we're talking about another $3.7 billion on top of that. Surely someone (in Washington) has more sense than that."

We can only hope.