Gov't Has Spent Only $16.2B Of $62.3B Allocated For Katrina Victims...

Louisiana Governor Raises Questions About Slow Dispersal of Huge Relief Package

By JACKIE CALMES Staff Reporter of THE WALL STREET JOURNALOctober 25, 2005; Page A4

WASHINGTON -- Within 10 days of Hurricane Katrina's slamming of the Gulf Coast, President Bush and Congress rushed with rare speed to provide an unprecedented $62.3 billion in disaster aid -- twice the annual budget of the entire Homeland Security Department. White House budget director Joshua Bolten predicted the money would last only "a few weeks."

Six weeks later, the government has spent or signed contracts totaling $16.2 billion, about a quarter of the money. To hurricane victims still awaiting trailers, small businesses needing loans to rebuild or city officials clamoring for debris removal, that amount may seem stunningly low. "When you look at the $62 billion and how much is actually making it to the state, it's such a small percentage that it's really disappointing," says Denise Bottcher, a spokeswoman for Louisiana Gov. Kathleen Blanco. She says the governor has asked the Army Corps of Engineers and the Federal Emergency Management Agency for details on where the money is being spent in Louisiana, but the agencies haven't provided any. >>>cont

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