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August 25, 2006
Donald Powell
Thank you for giving me the opportunity to answer questions. First, Id like to put Hurricane Katrina and Rita into some historical context, focusing on the scope and scale of these catastrophic events. Katrina, followed by Rita one month later, were two of the most intense hurricanes ever recorded in the nations history. The storms had a massive physical impact on the land, affecting 90,000 square miles an area the size of Great Britain. Over 80 percent of the city of New Orleans flooded an area seven times the size of Manhattan. More than 1.5 million people were directly affected and more than 800,000 citizens were forced to live outside of their homes the largest displacement of people since the great Dust Bowl migrations of the 1930s. Since the storms hit, government, private and voluntary organizations have worked in concert to help rebuild the region. President Bush continues to follow through with the Federal commitment to do what it takes to help residents of the Gulf Coast rebuild their lives in the wake of this disaster, with $110.6 billion in Federal aid going towards relief, recovery and rebuilding efforts. So you can see this really captures how large this catastrophic event was. The President is fulfilling his commitment to rebuild the Gulf Coast better and stronger. And this commitment in demonstrated in several critical areas: stronger hurricane protection, housing, education, debris removal, and economic recovery and stimulation. Dan, from UK writes: Donald Powell One of the best ways to lift people up out of poverty is by empowering them to join what the President calls the ownership society. Thats why, in 2002, President Bush set a goal to help increase the number of minority, low- and moderate-income homeowners by 5.5 million by the year 2010. The Administration is committed to raising the minority, low- and moderate-income homeownership rate because homeownership strengthens families and communities, and is critical to the country's economic health. The initiative is run by the U.S. Department of Housing and Urban Development. HUD has also been a lead agency in rebuilding the Gulf Coast. HUD is working closely with state and local officials to craft smart recovery plans that will break the chain of chronic poverty and depression so that families on the Gulf Coast have safe, secure, and productive lives. At President Bushs request, Congress has provided a total of $16.7 billion in Federal funds under HUDs Community Development Block Grants (CDBG) program to help rebuild damaged housing and other infrastructure. This unprecedented program represents the largest single housing recovery program in U.S. history. In addition, in New Orleans specifically, HUD has brought 1,800 public housing units back online, and by the end of September this number will increase to over 2,000 units. This is almost half of the public housing units that were occupied prior to the storm. HUD has also offered the New Orleans Mayor, City Council, and resident leaders a redevelopment plan for four major public housing complexes. As part of this plan, HUD contributed $500,000 to the city's "Neighborhoods Rebuilding Plan," which is a community-driven effort to help guide the revitalization of city neighborhoods. As part of the overall revitalization effort, earlier this week, HUD Secretary Alphonso Jackson welcomed 20 families to the new Fischer public housing complex, which will eventually house 123 families by the end of September. In addition to housing, the President is also committed to rebuilding and reinvigorating other important community services such as education. The Administration has committed nearly $2 billion towards educating displaced students and rebuilding and reopening schools in New Orleans and the Gulf Coast region. All K-12 schools in Mississippi have reopened on original grounds or elsewhere. New Orleans public schools, which suffered from one of the highest dropout rates in the nation, have "undergone a complete overhaul," in the words of Time Magazine. The U.S. Department of Education also capped interest rates and reduced loan fees to Historically Black Colleges and Universities damaged by the storms. Reforming education another key to reducing poverty -- is a large task and it will not happen overnight, but I'm convinced that we are laying the groundwork for a better and stronger future for young people of all backgrounds in the Gulf Coast area.
Furthermore, the U.S. Department of Commerces Minority Business Development Agency has assisted over 340 displaced minority firms to prepare and submit applications for disaster relief, emergency loans and insurance claims, and to reconstruct business plans and other key business documents. Commerce has assisted approximately 1,275 minority business entrepreneurs with the identification of procurement opportunities and conducted education and outreach activities reaching more than 4,000 of these entrepreneurs. Shelagh, from Austin, Texas
writes: Donald Powell
In fact, across the country, about 2/3 of all National Flood Insurance Program policyholders choose to exceed these requirements because they understand that their areas face greater risk than others. Federal, state, and local governments, along with individual citizens, have an opportunity to make their homes, businesses, and communities less vulnerable to flooding by elevating them to these advisories or higher. Residents of coastal areas can face devastating consequences if they make building decisions without regard to the fact that floods exceeding protection levels can occur or if they assume every component of a flood protection system will function flawlessly. Indeed, some people are building their homes on stilts in order to minimize their risk even further. ethan, from Parma ID
writes: Donald Powell
The Federal government's ability to respond this hurricane season can be summed up in a single word: better. We've learned from the lessons of Katrina, and were doing everything possible to be prepared for the next storm. FEMA has improved its response coordination processes have been streamlined so that state and local governments know who their primary points of contact are before a disaster hits. More supplies are on hand, as is the ability to track them. There's four times more ice and emergency meals, and two and one half times more water, as last year. These supplies have the capacity to sustain one million people for one week. The Federal government supports state and local leaders: they are the first to respond because they know their people and their geography, and the U.S. Department of Homeland Security has worked closely with communities to identify any weaknesses in their response plans and find ways to improve them. dave, from somerdale new jersey
writes: Donald Powell The Task Force's Command Center in Baton Rouge has received and referred almost 7,000 complaints to various Federal agencies nationwide, and the Task Force continues to receive approximately 200 calls a week related to disaster benefit fraud. In addition, the U.S. Government Accountability Office (GAO) has referred over 6,000 matters to the Task Force for investigation. Similarly, the American Red Cross is in the process of referring over 2,000 matters to the FBI Field Office in Louisiana and over 300 matters to the FBI Field Office in Jackson, Mississippi. In addition to its efforts through the Task Force, DOJ is currently working with various IGs, FEMA, and other agencies to facilitate to identify so-called "double dipping." Though there are a number of sensitive privacy issues that must be addressed in connection with such determinations, this ongoing effort remains a priority in DOJ's response to Katrina.
Another example is the U.S. Department of Housing and Urban Development's (HUD) efforts to prevent fraud in the long-term housing programs for hurricane victims. HUD's IG has developed and currently participates in a far-reaching fraud prevention program in the affected states of the Gulf Coast Region, sponsoring training courses and workshops in Louisiana, Mississippi, and Alabama. These presentations and workshops are designed to educate state agencies, as well as Federal, state, and local law enforcement in identifying fraud in HUD grant programs. Bobby, from Lubbock, Texas
writes: Donald Powell Here are some examples of the work these armies of compassion have been doing: The Baptist Crossroads Foundation coordinated over 2,500 volunteers to construct 30 Habitat for Humanity homes in 10 weeks. Through Catholic Charities, about 4,000 volunteers have given more than 100,000 hours of service and have gutted 786 residences. The Salvation Army helped 1.7 million people in at least 30 states.
Thank you for your interest in helping those in need. Daniel, from Great Barrington, MA
writes: Donald Powell And the energy sector is back, which is also very, very important to America. Both gas and oil production is back to pre-Katrina levels. Pipelines are back to pre-Katrina levels. Refineries are producing. And tourism is coming back: 80% of the hotels in New Orleans are open; 62% of the restaurants are open. In Mississippi, sales tax revenue is in double-digit increases over last year. Economic activity in Mississippi, as it relates to employment, is very strong. Businesses are open. I was in a retail store in Ocean Springs, Mississippi, last Thursday, and I talked with the owner. He said he's having the best year he has ever had and he has been at that place for 15 years. So there is lots of strong economic activity.
Full recovery and rebuilding won't happen overnight, but we are making progress. Edgar, from New York
writes: Donald Powell josh, from milwaukee wisconsin
writes: Donald Powell About 70% of the funds ($77 billion of the $110 billion) has either been spent or is available for the states to draw from. Louisiana alone has received approximately $25 billion for long-term rebuilding, in addition to billions of dollars for response and recovery. The state will invest these funds in the rebuilding of New Orleans and other hurricane damaged communities.
We are working with state and local leaders to help them rebuild the region, and more funding will become available to individuals as states roll out their housing plans to the public. Daniel, from Fairlawn, NJ
writes: Donald Powell
It's also important to remember that a sustained, long-term recovery can't be accomplished by the Federal government alone. Fortunately, the private sector is actively engaged. Jobs are being created. Revenue streams are being created for example, sales tax revenue in both Louisiana and Mississippi are at record highs. I'm a former banker, so I always look to that sector for a sign of economic health, and bank deposits are 26 percent higher than they were this time last year. That means there is a lot of liquidity in the area. And credit is available. All these signs point to lots of economic activity.
So the President is fulfilling his commitment. As I mentioned, it won't happen overnight, but I'm convinced that the groundwork is being laid for a vibrant Gulf Coast area. Jennifer, from Cleveland writes: Donald Powell That being said, while New Orleans is safer, we can only engineer Mother Nature so much. It is impossible to completely eliminate risk.
Bear in mind, the nation has limited financial resources, and while Congress appropriated $20 million to commission a study to determine how to build an even more comprehensive hurricane protection system, any further projects have to be approved and funded by Congress in order to be built. Cliff, from Brimfield, Ohio
writes: Donald Powell Kim, from Kentucky writes: Donald Powell As to the second part of your question, volunteer groups have been tremendously helpful in the recovery and rebuilding efforts. The nations armies of compassion have contributed more resources to the Gulf Coast over $3.5 billion in cash and in-kind donations than at any other time in our nations history. Five charities account for more than 85% of the money raised: the Red Cross ($2.1 billion); the Salvation Army ($365 million); Catholic Charities USA ($146 million); the Bush-Clinton Katrina Fund ($129 million) and Habitat for Humanity ($122 million).
In addition to these private efforts, the Federal governments national service arms have contributed to relief and rebuilding through the Peace Corps and the Corporation for National and Community Service (the Senior Corps, AmeriCorps, and Learn and Serve America). Carolyn, from Bay St. Louis, Ms
writes: Donald Powell Now, as you might expect, there is always a balance between getting the money out fast and getting the money out responsibly fast. Both Louisiana and Mississippi have an administrator that is charged with the responsibility of making sure the plans are fulfilled when they give the money to the applicant or to the homeowner in Louisiana and in Mississippi. And at the beginning, as you might expect, there is some sense of frustration and a balancing act as they go forward. But in Mississippi, I'm happy to report to you that there are some homeowners that have received money already. In Louisiana I know the governor is working hard to get the Road Home program checks cut and I expect the funds to start flowing any time now. I am in contact with these administrators from time to time. I can assure you that leaders in both Mississippi and Louisiana want that money to get out into the marketplace as fast as possible. But, again, keep in mind that they are going to be good stewards of that money and that the plans had to be submitted to Washington to ensure they were sound and that the states are using Federal taxpayer dollars responsibly.
Donald Powell |