Katrina Cash Heads North: $41M in Relief, but None for Coast

JACKSON — Gov. Haley Barbour announced Tuesday the release of $41 million in Hurricane Katrina relief funds for projects in 39 counties and cities, but none were in South Mississippi.

Since the storm, South Mississippi legislators and some community groups have criticized Barbour for federal Katrina relief spending, over which he has held much control.

The projects announced Tuesday include infrastructure, new construction, drainage and others on public property. The money Barbour released is part of $5.48 billion in Community Development Block Grants from the Department of Housing and Urban Development for hurricane relief.

Barbour points out the storm did damage from Columbus to points southward, and that nearly 50 counties make up the Gulf Opportunity Zone, which is the area Congress designated for post-storm tax incentives.

"Hurricane Katrina truly impacted our whole state, and this funding will help key communities in South and central Mississippi rebuild vital public facilities which were damaged," Barbour said.

Projects ranging from $1.4 million to replace a storm-damaged fire station in Hattiesburg to $1.6 million for tearing down and rebuilding a county education building in Starkville were announced Tuesday.

Gray Swoope, executive director of the Mississippi Development Authority, which disburses the money and oversees the applications, said in a news release that officials went to each site to verify that the projects involved Hurricane Katrina issues, and that those approved fit in well with what the Block Grant program is supposed to take care of.

State officials said most of the $5.48 billion in Block Grant money has gone to South Mississippi. They said $225 million in community revitalization grants with Block Grant funds went to South Mississippi projects that were similar to those mentioned in Tuesday’s announcement. About $200 million in Block Grant money was also recently given to Hancock County for road repairs, a new county jail and other projects.

"Our focus is geared primarily toward the lower six counties," MDA spokesman Lee Youngblood said.

Almost all of the $5.48 billion in Block Grant money, which includes $200 million in administrative costs, has been allocated. But if some programs, which solicit grants to determine where the money goes, don’t use all of their allotment, some funds could be redistributed, Youngblood said.

A House effort to give the Legislature oversight over how the billions of dollars in federal Katrina money are spent was defeated in the Senate in a previous legislative session. Sen. David Baria, D-Bay St. Louis, filed a similar bill this year that died in committee.

South Mississippi Democrats have criticized Barbour’s use of federal Katrina relief money, including a decision to give $3.5 million in federal law enforcement Katrina relief funds to the city of Jackson and Hinds County to fight crime.

They also opposed his plan to take more than $80 million from the Katrina reserve fund, which is money the state had set aside to pay Katrina-related expenses, but a federal rules change allowed the state to keep the money. The Katrina reserve funds were never used, so this year Barbour pushed to have it put in the state’s rainy day fund, which the Legislature agreed to do.

But there was another effort to spend $25 million of the Katrina reserve fund on improvements to a two-lane north Mississippi highway to benefit businesses interested in supplying parts to a Toyota plant there. But the plan failed to gain enough support to pass in the Legislature this session.

Housing advocates, including the Steps Coalition, protested Barbour’s decision to give $600 million of the Block Grant money to the Port of Gulfport, when they believe the governor’s housing plan only meets half of the need. Barbour’s housing plan, which uses $2.9 billion of the Block Grant money, according to state officials, would deliver over 20,000 affordable housing units. Barbour has contended the state’s programs meet the housing needs based on the data available now.

Sen. Debbie Dawkins, D-Pass Christian, said Tuesday she doesn’t believe hurricane recovery needs are being fully met. Dawkins wants funds to help the cities of Long Beach and Pass Christian stay afloat during the lean times caused by lack of post-Katrina tax revenue because so many homes and businesses were lost.

"We just need some help to get through," Dawkins said. "I think the federal government intended for us to get that help, but the governor doesn’t think he answers to them."