As New Orleans residents pause to reflect on the five years since Hurricane Katrina devastated their city, Mayor Mitch Landrieu said their future will be "about resurrection, redemption and about getting it right." The mayor, speaking at the National Press Club, reported on the city's progress since Katrina flooded nearly 80 percent of the city, killing more than 1,800 and claiming more than 182,000 homes. The disaster has the dubious distinction of costing the government an estimated $114 billion in response efforts.
But New Orleans has a strong backbone and has been tirelessly renovating and reinventing itself while dealing with the effects of the BP oil spill in the Gulf of Mexico. The Big Easy has come a long way, but still has a long way to go.
"I think BP and other folks are underestimating not only the physical damage but the economic damage as well," Landrieu said. "The consequences are dramatic. Everybody thinks the oil on the shore was cleaned up and we are done. That's not true."
Some see Landrieu, who comes from a political family and took office in May, as a breath of fresh air. His administration hit the ground running with a list of bricks-and-mortar initiatives and is ready to move forward with initiatives that were postponed under his predecessor, Ray Nagin. Within the last week, Landrieu committed to spend nearly $640 million on more than 100 Katrina recovery projects over the next three years, with a primary focus on the city's safety, schools, jobs and education. The city has already spent $14 billion to improve levees and protect New Orleans from future hurricanes. Its transformation will be slow, but Landrieu expects it to be at least five years for New Orleans to recover.
Deepwater Drilling: Lift the Ban?
President Obama will travel to New Orleans on August 29 to mark Katrina's five-year anniversary, and will meet with Landrieu who will "politely" discuss lifting the ban on deepwater oil drilling. "It's not a zero sum game," Landrieu said. "We are not limited to 'drill, baby, drill' or 'stop drilling forever'. We can do better. We must drill and restore."
The mayor told The Fiscal Times he agreed with the president about 99 percent of the time and referred to him as a friend and great supporter of New Orleans. But, "one thing he and I have a disagreement about is the timing of when to lift the moratorium and how to do it. We are at the point where you can drill safely and restore the coast." President Obama issued a six month moratorium on deepwater drilling after the Deepwater Horizon rig exploded in April, killing 11 people and spewing more than 200 million gallons of oil into the Gulf of Mexico. Earlier this week new reports suggested that more than three-quarters of the spilled oil still threatens Gulf marine life, disputing earlier government statements that it had been dispersed. BP has spent more than $2.35 billion in disaster response costs.
The deepwater drilling ban will expire on Nov. 30, 2010. The mayor said the Gulf Coast region and the entire U.S. economy depends on safe deepwater drilling and stressed that the oil spill crisis is the most challenging and pressing issue at the moment. Some estimates put the cost of the spill at $26 billion in economic output, and 24,000 lost jobs.
Climbing out of the Hole
Coupled with Katrina recovery projects and the oil spill catastrophe, Landrieu inherited a $79 million deficit out of a $460 million budget. He recently announced plans to close the gap by imposing 14 furlough days for public service employees and restructuring the city's usage of overtime.
While Landrieu's tone on Thursday was somber he repeatedly made a pitch that the city was open and ready for business and that seafood was safe. But not everyone is convinced. Ian MacDonald, a professor of oceanography at Florida State University and one of the country's foremost oil slick experts, believes that the oil and dispersants lurking below the surface could affect the food supply. Landrieu has called on BP to reinvest in the Gulf Coast community by moving their headquarters to New Orleans and finance seafood testing and tourism marketing.
Despite the "perfect storm" of catastrophe's which have beleaguered the city, Landrieu says the general mood is optimistic. "I think the city is happy. It was euphoric when the Saints won. The BP oil spill really put the kabash on how people are feeling but they think we are headed in the right direction."
Related Links:
As Spill Looms, City Plays the Waiting Game Again (New York Times)
Katrina Anniversary Brings Heartfelt Reports (The Denver Post)
BP Oil Spill: Grave Threat to a Great City (The Fiscal Times)
