La.: Governor to have recovery talks

La.: Governor to have recovery talks

	Published : Wed, 17 Oct 2007 17:44 By : Agencies Print this Story

BATON ROUGE, La. (AP) - Gov. Kathleen Blanco takes her bid for federal aid to keep the Road Home hurricane aid program afloat to the White House on Thursday, amid a flurry of meetings in Washington.

Blanco said she's meeting with Donald Powell, President Bush's Gulf Coast recovery chief, and Al Hubbard, assistant to the president for economic policy, as she makes the rounds of Washington leaders who could help the state win support for billions of dollars in Road Home aid. The meeting, originally scheduled for Wednesday, was moved to Thursday morning, Blanco's final day in Washington.

The homeowner assistance program is funded with $7.4 billion, mainly in federal recovery money. But the governor's Louisiana Recovery Authority estimates the Road Home will be short about $4.6 billion of what it needs to pay all eligible homeowners, and Blanco is asking Congress to fill in the entire shortfall.

Without additional money, the LRA estimates the program will run out of cash by year's end -- and about 90,000 homeowners will receive repair or buyout grants before the money runs out. That could leave as many as 76,000 eligible homeowners empty-handed, according to LRA estimates.

'I am concerned. I would like the White House to enthusiastically embrace our request. It would make it tremendously easier,' Blanco said Tuesday in an interview from Washington.

White House leaders haven't yet said if they will push for more aid for the program. Powell has said the program is running short because the state included more homeowners in the Road Home than federal officials agreed to fund -- a point of disagreement with state leaders -- and he has asked for more details on how the state has devised its shortfall projections.

On Tuesday, Blanco met with members of Louisiana's congressional delegation, House Majority Whip Jim Clyburn, D-S.C., and the House Democratic Caucus to ask for help with the Road Home. Also in the meetings with Blanco were New Orleans Mayor Ray Nagin, city recovery director Ed Blakely and others.

Blanco said she's optimistic congressional leaders will help fill the gap, but the governor also said she's worried about the timing of assistance.

'What we don't want to suffer is uncertainty or actual stoppage,' she said.

State officials said the shortfall in the homeowner aid program stems from more than expected eligible homeowners, more severe damage to homes than originally estimated by federal officials and smaller insurance payments than expected.

Congress could fill in $1.2 billion of the gap without tapping new money, by intervening in a dispute with federal officials that has barred the state from using a pool of federal recovery aid for the Road Home.

More than 61,000 homeowners have received grants from the Road Home so far.