Katrina cash should not go to waste
Published 12:00 am Sunday, March 8, 2009
While a lot of hot air was expended pointlessly in Jackson last week, a storm of a different sort — centered on a 2005 hurricane — was brewing in the southern half of Mississippi.
In the Capitol, members of the House railed for three hours, finally resolving that the state “must” accept $58 million in jobless benefit money earmarked in the $2.8 billion in federal stimulus money being delivered to Mississippi government operations. Gov. Haley Barbour and Lt. Gov. Phil Bryant are on record as adamantly opposed, saying the state would have to raise taxes on employers if the money is accepted because the federal rules widen eligibility. Because Bryant holds sway in the Senate, that chamber is not likely to act on the House resolution. That means Barbour, sadly, will get his way. Unemployment benefits in this state are the lowest in the nation. To imply there will be some rush to cash in on them is ridiculous. Further, if the expense of jobless benefits becomes too great at some future date, the state will be free to pare back eligibility requirements.
The storm of a different sort was on the Gulf Coast where Barbour told business leaders that Mississippi could lose $1.6 billion in Hurricane Katrina recovery money if the pace of rebuilding doesn’t pick up before the fourth anniversary of the nation’s worst natural disaster.
In all, Barbour said about $2.8 billion of the federal money he negotiated for the state has not been spent. If the cash is not needed, that’s one thing. But if it can be used for the purposes it was sought, then further delay is inexcusable.
As Barbour said, spending the remaining hurricane recovery money will create an estimated 18,000 jobs. So guess what? If the state and coastal counties will just put money already allocated to work, applications for unemployment checks might actually start falling.
Mississippi didn’t ask for Katrina to devastate 45 of the 82 counties in August 2005, but the state did get an unprecedented “stimulus package” from America’s taxpayers in the storm’s aftermath. One category alone contains $924 million worth of FEMA assistance projects for Harrison, Hancock and Jackson counties, including $87 million for recreation, $34 million for roads and bridges, $221 million for public buildings and $582 million for public utilities.
For that money to be idle is unforgiveable.