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In another interesting and weird twist down in New Orleans and Louisiana politics, Governor Kathleen Blanco is concerned over the package for the 4.2 billion dollar rebuilding package proposed by President Bush. In typical Blanco form, it was the package that she and the Louisiana Recovery Board approved and applauded earlier. Now it is not enough or too restricting.

In Washington for the National Governor’s Association meeting, Blanco said she is worried that the restricting the housing money to “mitigation” uses could turn the worst flood-damaged sections of the city into green space, off limits to residential or commercial development.
“If (the proposal) stays like it is, it will be New Orleans National Park,” Blanco said. “It will be a problem for us unless they change the language.”
The housing money, included in a $19.8 billion supplemental spending package unveiled by the Bush administration two weeks ago, specifies that the money be subject to section 404 of the Robert Stafford Disaster Relief and Emergency Assistance Act.
Under the act, the state could spend the money to raise homes or fortify them against future flooding. The homes also could be purchased outright. But if they are, they cannot be placed back into commerce, only used as green space or wetlands.
The Bush proposal was originally hailed by Blanco and her Louisiana Recovery Authority, which helped negotiate the deal. It appeared to break an impasse over how Louisiana would cope with its post-Katrina housing shortage as it attempts to draw residents back to the region. via The Times Picayune.

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