The Poor in Mississippi Lag Behind in Hurricane Aid

This story is a national disgrace. How can it be that after two years, citizens affected by the ravages of Katrina are still suffering and not receiving the help that they so desperately need?

Like the other Gulf Coast states battered by Hurricane Katrina, Mississippi was required by Congress to spend half of its billions in federal grant money to help low-income citizens trying to recover from the storm.

But so far, the state has spent $1.7 billion in federal money on programs that have mostly benefited relatively affluent residents and big businesses. The money has gone to compensate many middle- and upper-income homeowners, to aid utility companies whose equipment was damaged and to prop up the state’s insurance system.

Just $167 million, or about 10 percent of the federal money, has been spent on programs dedicated to helping the poor, mostly through a smaller grant program for lower-income homeowners.

And while that total will certainly increase, Mississippi has set aside just 23 percent of its $5.5 billion grant money — $1.25 billion — for these programs. About 37 percent of the residents of the state’s coast are low income, according to federal figures.

Mississippi is the only state for which the Bush administration has waived the rule that 50 percent of its Community Development Block Grants be spent on low-income programs, according to the Department of Housing and Urban Development, which administers the program. It is also the only state to ask for such waivers.

State officials, from Gov. Haley Barbour on down, insist that the state does not discriminate by race or income when it hands out aid to storm victims.

“We feel like we have programs in place to address all walks of life,” said Gray Swoope, executive director of the Mississippi Development Authority, which administers the federally financed grant programs.

Any delays in spending money on low-income projects have been caused by the complexity of creating the projects, said Donna Sanford, director of the disaster recovery program for the development authority. The state, Ms. Sanford said, “has done everything that we can to keep it on track and moving as fast as possible to meet the needs of everyone.”

They go on report the latest 'progress' being made

Because fewer applicants than expected applied for Mississippi’s assistance program, the state still has almost $2 billion left, some of which it plans to use for community development projects and for the port expansion.

The port, at the foot of Gulfport’s main street, flies a Chiquita banner under its American flag; fruit imports remain down but are bouncing back, though exports of frozen poultry have stopped since the storm destroyed the port’s refrigerated warehouses. The state says that the expansion will add about 1,000 jobs over the next five years, and that many of those will be reserved for low-income residents.

But some community advocates are dubious, noting that before the storm only 10 percent of the port jobs went to low-income residents. They also think the cost per job will be too high.

And they note that the port’s own master plan envisions a new tourist and casino development. “It’s not all about bananas,” said Reilly Morse, a lawyer for the Mississippi Center for Justice.

Mr. Morse and many others who oppose the port plan say the state should first ensure that all the families now living in more than 10,000 government trailers have a permanent place to live, that rental housing gets built and that all homeowners can repair their houses.

“I don’t have any problem with economic development and expanding the port, but not at the cost of people,” said James W. Crowell, president of the N.A.A.C.P. branch in Biloxi, just down the beach from Gulfport.

Hmmm...fewer applicants than expected filed for assistance and the state just happens to have a $2 billion dollar surplus. Wow. Tell that to the people still living in their toxic FEMA trailers.