Katrina: incompetence "by a factor of five"

From our friends at the Institute for Southern Studies, some statistics on the 42 percent of Katrina relief funds that haven't yet been spent:

* Washington set aside $16.7 billion for Community Development Block Grants, one of the two biggest sources of rebuilding funds, especially for housing. But as of March 2007, only $1 billion -- just 6 percent -- had been spent, almost all of it in Mississippi. Following bad publicity, HUD spent another $3.8 billion on the program between March and July, leaving 70 percent of the funds still unused.

* The other major source of rebuilding help was supposed to be FEMA's Public Assistance Program. But of the $8.2 billion earmarked, only $3.4 billion was meant for nonemergency projects like fixing up schools and hospitals.

* Louisiana officials recently testified that FEMA has also "low-balled" project costs, underestimating the true expenses by a factor of four or five. For example, for 11 Louisiana rebuilding projects, the lowest bids came to $5.5 million -- but FEMA approved only $1.9 million.

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