Thursday, March 30, 2006

Collateral Damage

New insurance policies up and down the Gulf Coast are far more expensive and more restrictive as to what they cover than earlier policies. That's going to affect a whole lot of people, even those who were not directly affected by Katrina, Rita, or Wilma.

Some of the hospitals around New Orleans were too badly damaged by Katrina to be salvaged. And evacuation plans are still in the works. The 2006 hurricane season is around the corner and basic services are still lacking in many areas. Not a good place to be.

New Orleans itself remains is in dire shape, but state revenues are ahead of earlier estimates. I would hazard a guess that if the Louisiana state legislature and politicians got their acts together and straightened out the evacuation plans, rebuilding plans for NOLA, and the federal government provided hazard maps when they first said that they would be available in January, the recovery would be even faster - as people would have more certainty over the rebuilding process.

Instead, those who have the means to rebuild are already doing so, and those who are least capable of rebuilding are forced to wait even longer and every day reduces their ability to rebuild.

Affordable housing is an ongoing problem throughout the region. Businesses that have restarted are limited because people simply don't have places to live. Some, like the Biloxi casinos may have to take it upon themselves to provide the housing.

Politicans are making the rounds throughout the affected areas, including David Vitter in Slidell, who toured the damaged city with Mayor Ben Morris. Those tours make for great photo ops and pressing the flesh is a political pasttime, but does little to rebuild houses or clear debris or get infrastructure functioning.

Volunteers are continuing to provide assistance to the region, including in Pascagoula.

UPDATE:
Costs to restore the levees appear to top $6 billion. That's double the earlier estimates.
Louisiana delegation members who attended the briefing late Wednesday said they would insist on a 100 percent federal payment of the levee costs, because the failures of the levees and floodwalls during Katrina were caused largely by poor design and construction flaws that independent investigations have blamed on the Army Corps of Engineers.

Some of those who attended the meeting said they believe, based on information they received from Powell, that the final total could be even higher.

Powell also told the officials that the Bush administration believes the release of flood maps from the Federal Emergency Management Agency, eagerly awaited by residents and businesses deciding whether they can rebuild their properties, requires authorization that the levee restoration work will in fact go forward.

"For the flood maps to be released, the corps has to do some certification of the levees, and that has costs associated with it," Powell said. That certification, he said, could be as simple as the administration requesting authorization for the levee work, although it's possible that Congress will have to approve the request.
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