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The Washington Times Online Edition

Katrina collects a bundle

The flow of federal dollars to the Gulf Coast two years after Hurricanes Katrina and Rita devastated the region already exceeds what the U.S. spent on the Marshall Plan to rebuild Europe after World War II.

President Bush and Congress have committed more than $127 billion in resources and tax relief for the region — significantly more than inflation-adjusted $107.6 billion directed to 16 countries in Europe between 1947 and 1951.

“We dumped billions into Europe, but it was prepared to deal with it and used it to create a viable new economy,” said Fred L. Smith Jr., president of the Competitive Enterprise Institute.

“At the moment, Louisiana’s economy is very regulated and politicized; it’s like pushing stones uphill while molasses flows downhill,” Mr. Smith said. “The challenge is to make sure aid to Louisiana is matched or surpassed by their own self-help efforts, the need to incentivize and liberalize its economy and political rules.”

Residents in New Orleans and the Mississippi towns hardest hit by the storms have generally expressed gratitude for the outpouring of help from across the nation, but remain frustrated by the delays in rebuilding their communities.

“I took a lot of heat from people who really expect the federal government to not just send help, but to make sure the help gets to the people who need it,” said Rep. Bennie Thompson, Mississippi Democrat and chairman of the House Homeland Security Committee after returning last night from a town meeting in New Orleans on the second anniversary of Katrina.

“It’s nice for people to come down here, but there is some resentment against all of the Washington people who come down here and give lip service, and go back to Washington and do nothing.”

More than $96 billion has been distributed or is currently available to states to rebuild houses and schools, repair damaged infrastructure and to provide shelter for hurricane victims, among other uses.

Washington also provided about $13 billion in tax relief, and has spent more than $7 billion to get New Orleans area’s levees back to pre-storm levels. Another $7 billion will be spent on the flood-protection system.

“We felt like we were fortunate that our request [for funding] was heard,” said Bryan McDonald, Mississippi Gov. Haley Barbour’s director of hurricane recovery and renewal.

Still, the rebuilding process has gone slower than anticipated.

“We had hoped to be much farther along,” said Mr. McDonald. “There is still plenty of recovery to be done.”

Many federally funded, state-administered recovery programs have yet to be fully implemented. And New Orleans’ struggle to define and fund plans for neighborhood redevelopment have shaken confidence about the city’s short-term future.

New Orleans Mayor C. Ray Nagin favors a “market-driven” recovery of the city, while critics say he hasn’t made the tough decisions necessary to get planning for the city’s future moving into high gear.

Some in Louisiana have accused the federal government of giving Mississippi a disproportionate share of aid compared with Louisiana.

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