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FOR IMMEDIATE RELEASE-


Bush budget cuts levee, drainage funds

Backlog of contracts waits to be awarded

Tuesday, February 08, 2005

By Mark Schleifstein
Staff writer

While President Bush's proposed budget contains a hefty increase in money for the federal-state Louisiana Coastal Area Ecosystem Restoration plan, other Army Corps of Engineers construction projects in the state, including levee and drainage projects in the New Orleans area, will see significant cuts.

The corps' New Orleans District, which stretches across the state's coastline, will get $290 million, a $34 million reduction from the dollars allocated for fiscal year 2005 by Congress, and almost $300 million less than the district says it needs to complete proposed and ongoing construction projects.

The corps' fiscal year 2006 budget is part of broad belt-tightening by the Bush administration in response to the war in Iraq and rapidly increasing deficits.

Some of Bush's proposed cuts could still be reversed by Congress when it takes up the budget.

The federal-state coastal restoration plan will get $20 million, an $11.5 million increase from 2005, but still far short of what officials say is needed to begin construction of dozens of wetland and shoreline restoration projects.

The Senate is expected to take up the Water Resources Development Act, a list of water-related projects expected to include authorization for $1.9 billion for the Louisiana restoration program, sometime this month. But it could be a year or longer before the money for those projects is appropriated in separate legislation, officials say.

Also awaiting congressional authorization are two major levee projects -- from Morganza to the Gulf and from Donaldsonville to the Gulf -- that the Bush budget doesn't address. Those projects together are expected to cost more than $1.2 billion.

Bush's budget does list the West Bank hurricane protection levee construction project as a priority, corps budget officer Marcia Demma said. But the $28 million included in Bush's budget is less than half the $63 million the corps said is needed in 2006.

And the $3 million proposed for continued construction of the Lake Pontchartrain hurricane levee probably won't be enough to clear a backlog of contracts waiting to be awarded, Demma said, including ones that would close a major gap in the levee system in St. Charles Parish.

Mark Lambert, communications director for the Louisiana Department of Transportation and Development, said the state also has been notified that construction dollars will be reduced for a project to raise the Mississippi River levee between the Arkansas border and the Old River Control Structure, north of Baton Rouge.

"What these cuts mean is that the people of Louisiana will be at risk for a longer period of time," Lambert said.

Jefferson critical of budget

U.S. Rep. William Jefferson, D-New Orleans, was also critical of priorities set by Bush's budget.

"While we work to widen the Industrial Canal and provide hurricane protection for our coast, this budget cuts the New Orleans Army Corps of Engineers budget by over $53 million, providing zero funding for the Inner Harbor Lock Canal project and with a $26 million cut for Southeastern Louisiana hurricane protection and drainage projects," Jefferson said.

"The federal budget is, at its core, an expression of our nation's priorities. Once again, through this disappointing budget, this administration confirms that it is wholly out of touch with America's values and the real needs of people in Louisiana and throughout the nation."

Windell Curole, executive director of the South Lafourche Levee District, said he's worried that a decision to cut all money for completion of the Larose to Golden Meadow hurricane levee could spell disaster.

"Luckily, we have built a substantial amount of this final lift," he said. "But if we're a couple of feet low and the water goes over the top, we go from zero damage to millions of dollars lost by our citizens."

New ranking method used

Curole was critical of a new method used by corps officials to rank projects by comparing the remaining benefits to be gained from completing a project to the cost of completion. Some corps staffers also aren't happy with the new method, saying that with some projects like levees it doesn't adequately measure the potential danger of not completing a final levee lift.

When a levee is built, it is done in repeated lifts, where the levee is allowed to settle in place and then is raised a second and third time to the height required to keep out water.

"The Larose to Golden Meadow levee fell below that cutoff line and got nothing," corps project manager Brett Herr said. "If there's a reach below design grade, that lowest reach is the weakest link," and the new formula doesn't take that into account.

Also facing significant cuts is the Southeast Louisiana Urban Flood Control Program, whose projects include a variety of canal widenings, culvert replacements and pump station replacements and upgrades in Orleans and Jefferson parishes.

The projects would get $10.5 million in 2006 in the Bush proposal, compared to $35 million in 2005. A number of contractors were advised last year that they had the option of quitting work on their projects or picking up the cost of construction themselves, until the corps could find money to repay them.

14 projects still not started

Stan Green, project manager for the drainage projects, said the money proposed for 2006 probably won't be enough to allow even one of the 14 projects still not started to be put out to bid.

In part, he said, that's because corps officials in Washington want the district to have the entire cost of construction for new projects in hand before they're allowed to be put out to bid.

Exacerbating the problem is a requirement that the drainage program pay back almost $4 million it borrowed from other corps programs in the New Orleans district in previous years to speed construction.

"That'd put us in a situation where we could not award any new contracts," he said.

Demma said it's unclear whether the cuts will require layoffs among New Orleans district's staff.

"We're still determining the impacts, and we have a lot of folks retiring," she said.

. . . . . . .

Mark Schleifstein can be reached at mschleifstein@timespicayune.com or (504) 826-3327.

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Ormond Civic Association
PO Box 46, Destrehan, LA 70047
Internet: ocaenews@ormondcivicassociation.org



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