Coordinator Quits Gulf Recovery Job

Bush Appointee Says Much Remains To Be Done, But Work Is on Track

The Bush administration's federal coordinator of long-term hurricane recovery efforts on the Gulf Coast resigned unexpectedly yesterday, acknowledging frustration at the slow pace of rebuilding but expressing confidence that the foundation for progress is in place.

"It was just a good time" to go, said Donald E. Powell, 66, a major Texas backer of President Bush who took the Katrina post in November 2005, after serving as chairman of the Federal Deposit Insurance Corp.

Powell's announcement came nine months before the executive order establishing his position expires -- and 30 months after Hurricane Katrina's landfall on Aug. 29, 2005.

"While there has been lots of frustration on my part, and lots of setbacks and lots of anxieties, [the recovery] is beginning to kind of get its legs underneath it," said Powell, who plans to return to the banking industry after leaving office in about two weeks. "It's now a matter of execution and time."

He cited a federal pledge to rebuild levees around New Orleans to withstand a 100-year flood by 2011, a unanimous City Council vote in December to tear down 4,500 public housing units and a plan to continue temporary housing for storm victims.

But he said that an improved appeals process to resolve state and local disputes over federal disaster assistance is needed. He added that the New Orleans area remains "a long, long way from recovery."

"All we've got up is schools. What about fire stations? Police quarters, water, sewer, libraries?" he continued. "But at least it's on track now, and we know what we're trying to accomplish."

Bush issued a statement thanking Powell for his dedication, adding that he "brought to the job a perfect combination of talent, temperament, experience, and compassion."

Gulf Coast leaders expressed "mixed emotions" at the announcement, as Sen. Mary Landrieu (D-La.) put it. "Regrettably, Chairman Powell found himself entrenched in an administration that refused to use the levers of power at their disposal to accelerate our recovery," she said, adding, "He will always have a pot of red beans and rice on the stove at Prieur Street."

Gov. Bobby Jindal (R), a former House member who took office in January, said, "While we may not have always agreed on the issues, we are grateful for Don's hard work on our behalf." Jindal said he hopes to work with a new coordinator to ensure state needs are "clearly communicated and . . . at the forefront of the national agenda."

Rep. Bennie Thompson (D-Miss.), chairman of the House Homeland Security Committee, noted in a written statement that 25,000 families remain displaced, many living in government-supplied trailers contaminated by formaldehyde, and that housing, infrastructure and the economy are still damaged. "More must be done to help the people of the Gulf before this office closes its doors," Thompson said.

In an interview, Powell said he tried to rebuild "some . . . fragile" trust of Katrina victims in the federal government.

He recalled that when he went to New Orleans, a driver he encountered asked why he took the job, saying, "This is a story that has an unhappy ending."

"I always loved deals that nobody wanted -- the challenges were very high, and the success rate wasn't very good," Powell said. While he loved to measure success and failure in the private sector through profits, he said, "This was a little more difficult."

Powell told Bush of his plans last week and submitted his resignation yesterday. The White House named Powell's chief of staff, Paul Conway, as acting federal coordinator.