Problems Still Plague Katrina Recovery

New Orleans Mayor Ray Nagin testifies with other officials from Gulf Coast.

ByABC News
February 11, 2009, 1:55 AM

July 10, 2007 — -- It's been almost two years since Hurricane Katrina devastated the Gulf Coast, but local politicians said they continued to face day-to-day obstacles with the emergency management agency meant to help them.

"Although funds have been obligated by the federal government for our recovery, municipalities are often unable to access the cash needed to begin critical projects," New Orleans Mayor Ray Nagin told a Senate subcommittee hearing on disaster relief Tuesday.

"As a result, the slow pace and awkward method of funds reaching the local level remains a principal issue hampering the recovery effort," he said.

Congress has designated the Federal Emergency Management Agency as the agency that has sole responsibility for the coordination of government relief efforts in response to major disasters.

At the Senate hearing, Mayor Nagin proposed creating a new classification of "catastrophic disaster" for situations similar to Hurricane Katrina that would set in motion timetables for sending aid to an affected region faster.

Frustrated with the lackluster progress in his community, St. Bernard Parish President Henry "Junior" Rodriguez described to senators one example of how he believes FEMA is mishandling federal disaster funds.

Rodriquez said FEMA has been reimbursing his community for pumping trucks that are contracted to transport sewage out of the parish instead of simply giving the community money to repair the entire damaged sewage system itself.

"There is something wrong with this process," Rodriguez said. "We have spent, so far, $60 million dollars on vacuum trucks that suck the sewage out of the manholes. That $60 million could have been spent rebuilding our processing plants."

A FEMA official who testified before the subcommittee said the government agency is committed to rebuilding Gulf Coast despite the continued problems and mounting complaints.

FEMA rules mandate, however, that before the agency can fund a project, it must first determine whether the damage was caused by the disaster rather than pre-existing damage.