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Post-Katrina Promises Unfulfilled

David Bachemin was surprised to see a dead cat and a fishing boat in his Chalmette, La., neighborhood, which was damaged by Katrina.
David Bachemin was surprised to see a dead cat and a fishing boat in his Chalmette, La., neighborhood, which was damaged by Katrina. (By Michael Williamson -- The Washington Post)
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The Federal Emergency Management Agency and the Small Business Administration are struggling to meet unprecedented demands. FEMA is providing rental assistance to 700,000 families, but about 75,000 people are still in hotels. In some places, there is a shortage of rental housing available for evacuees.

As of Jan. 16, 18,943 applications for rental help had yet to be processed. As of this week, the SBA said that 190,000 of 363,000 applications for disaster loans to homeowners and businesses are still pending.

"It just doesn't seem to be well organized," said Ronald D. Utt, a senior research fellow at the Heritage Foundation who has written about disaster housing policy. "Things in some respects have gotten more confused than they were a couple weeks after the storm."

· Cleanup. The president vowed "to get the work done quickly . . . honestly and wisely," but a key first step -- cleanup -- has not gone smoothly.

Thirty million cubic yards of debris remain uncollected -- enough to build a five-sided column more than 50 stories tall over the Pentagon -- provoking environmental concerns, fears of runaway spending abuses and a spirit-sapping despair. Layers of subcontractors have caused debris removal costs to quadruple from $8 per cubic yard to $32 per cubic yard, said Sen. Tom Coburn (R-Okla.), who visited the region on Jan. 17 as part of a Senate delegation.

Legal questions initially slowed the cleanup effort, along with red tape and contracting disputes.

"The worst fears of many policymakers are being realized," Coburn said. ". . . Bureaucratic delays have caused the recovery effort to be appallingly slow and inefficient."

Sen. Susan Collins (R-Maine), chairman of the Homeland Security and Governmental Affairs Committee, said she is working with a bipartisan group of senators to broaden Powell's authority over people and funds.

· Rebuilding. On the broader question of rebuilding, Bush promised "a close partnership" with state and local leaders, with the federal government playing a secondary role. But the U.S. government is the key player because it provides money, determines access to flood insurance, and takes primary responsibility for infrastructure and cleanup.

Officials from both parties credit the president for committing $85 billion in federal funds and for approving tax relief and incentives such as the Gulf Opportunity Zone, which provides tax breaks for businesses in Mississippi and Louisiana. Still, they say the overall cost of the rebuilding is a major concern. "I want to remind the people in that part of the world, $85 billion is a lot," Bush said at a news conference on Thursday.

Baker's proposed Louisiana Recovery Corp. would cost another $10 billion to $30 billion, although supporters say the entity would recoup its costs as land values rise.

New Orleans Mayor C. Ray Nagin's commission has recommended a plan that would not rebuild heavily damaged neighborhoods unless a critical mass of residents return, possibly shrinking the city and making it easier to defend against floods. But state and local governments say the Bush administration is thwarting their plans to take the next step by opposing Baker's bill.


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