Posted by The Crux |
Last week, we learned that investors are using tax breaks meant to encourage post-Hurricane-Katrina rebuilding to provide luxury condos for 'Bama Tide football fans. A week before that, Time Magazine ran a series of articles indicating that two years and billions of dollars after Katrina, New Orleans is still not ready for another hurricane.
Today, Alternet cited an Institute for Southern Studies report indicating that not enough money was budgeted for post-Katrina rebuilding, and some of the money is sitting somewhere but not getting to the people who need it. Alternet reported:
"Although it's tricky to unravel the maze of federal reports, our best estimate of agency data is that only $35 billion has been appropriated for long-term rebuilding.
"Even worse, less than 42 percent of the money set aside has even been spent, much less gotten to those most in need."
Here are just two examples from the report:
۰ $16.7 billion was set aside for Community Development Block Grants, but only $4.8 billion had been spent as of July 2007
۰ the Army Corps of Engineers received $8.4 billion to restore storm defenses but has spent less than 20% has been spent as of July 2007.
I hope the custodians of the still-unspent funds have put the money in interest-bearing accounts and will put any earned interest toward the actual rebuilding effort.
According to Alternet, the White House and Congress have failed to exercise sufficient oversight over the rebuilding programs. This is not surprising, given the recurring problems that executive-branch agencies have experienced due to lack of government-contract oversight (click here and here for examples).
Many thanks to Charles at Mercury Rising for bringing this story to our attention.
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