How to create 100,000 good jobs in the Gulf Coast

One of the biggest problems facing residents of the Gulf Coast post-Katrina is finding good jobs. Tackling this problem might not be as hard as Washington is saying. The following comes from the Institute's new report Blueprint for Gulf Renewal.

UPDATE: Scott Meyers-Lipton (see below) sends us this excellent YouTube short on an event they did in San Jose, CA, to promote a Gulf Coast Civic Works project.

Good jobs are hard to find on the Gulf Coast, and the lack of decent work is keeping many residents from getting back on their feet. But a growing chorus of Gulf leaders thinks Washington could swiftly tackle the problem, if they’d only look to a successful chapter in U.S. history.

During the Great Depression, the Works Progress Administration created four million public works jobs—in two months. The “WPA army” built or fixed up 2,500 hospitals, 6,000 schools, 13,000 playgrounds; they even planted three billion trees.

Today, Gulf activists are calling for a similar Gulf Coast Civic Works Project that would give residents good-paying jobs to revive their communities.

“The WPA rebuilt our country in the 1930s,” says Prof. Scott Myers-Lipton, a professor at San Jose State University in California and advocate of a modern-day Gulf WPA. “A similar program can rebuild the Gulf Coast today.” Myers-Lipton estimates it would take only $3.9 billion—half the monthly cost of the Iraq war—to put 100,000 people to work at jobs paying $15 an hour.

It would be the ultimate win-win: Gulf residents would get stable jobs, decent pay and training in needed skills. Businesses would benefit from new workers and new money pumped into the economy. It would also jump-start stalled infrastructure rebuilding projects needed to revive the Gulf.

In New Orleans, community and faith groups like ACORN, All Congregations Together and the Jeremiah Project are actively pushing for the Gulf Civic Works Program. Presidential candidates John Edwards and Sen. Barack Obama have tentatively endorsed the plan.

But the program has gotten little traction in Washington, where lawmakers have opted to outsource the recovery to private contractors and a maze of fragmented agencies.

“Thousands of Katrina survivors have been waiting to return home and shape the future of their communities,” says James Rucker of ColorOfChange.org, a national e-advocacy group. “Finally, a plan exists to make this happen. But it won’t happen without public pressure.”

The Katrina Index: Relief and Recovery

From the Institute's report, Blueprint for Gulf Renewal: The Katrina Crisis and a Community Agenda for Action, released this week.

Rebuilding and Recovery

Amount that Bush administration says has been spent on Gulf Coast recovery since 2005 hurricanes: $116 billion

Estimated percent of those funds that are for long-term recovery projects: 30

Amount of FEMA’s 2005 disaster relief budget that was spent on administrative costs: $7 billion

Percent of the 2005 relief budget that represented: 22

Of $16.7 billion in Community Development Block Grants earmarked for long-term Gulf Coast rebuilding, percent that had been spent as of August 2007: 30

Of $8.4 billion allocated to the U.S. Army Corps of Engineers for levee repair in Louisiana, percent that had been spent as of July 2007: 20

Percent of rebuilding costs that Gulf Coast local governments were required to pay up front to receive matching federal funds, due to a Stafford Act provision that Congress has since waived for the region: 25, later reduced by President Bush to 10

Percent that New York had to pay after 9/11 and Florida after Hurricane Andrew, because the federal government waived the Stafford Act’s matching requirement: 0

Amount of additional money for rebuilding now available since the match requirement was waived in the Gulf Coast: up to $1 billion

As of June 2007, value of controversial “cost plus” Katrina contracts given out by three federal agencies, which allows companies to charge taxpayers for cost overruns and guaranteed profits: $2.4 billion

As of August 2006, value of Gulf Coast contracts that a Congressional study found were “plagued by waste, fraud, abuse or mismanagement”: $8.75 billion


For more on the state of the Gulf Coast recovery two years after Katrina, read the full report here (pdf).

NEW REPORT: Blueprint for Gulf Renewal

Today, the Institute for Southern Studies released the full version of our report, Blueprint for Gulf Renewal: The Katrina Crisis and a Community Agenda for Action (pdf).

On September 15, 2005, President Bush pledged that our nation would "do what it takes, and stay as long as it takes," to rebuild the Gulf Coast. Yet over 60,000 people are still in "temporary" FEMA trailers, and houses, hospitals and schools across the region remain shuttered. For thousands of people, the Katrina recovery has failed.

The study, published in collaboration with Oxfam America and the Jewish Funds for Justice, looks at 80 statistical indicators and draws on interviews with more than 40 Gulf Coast leaders to identify roadblocks to recovery, and ways federal leaders can tackle critical needs in the region like housing, jobs and coastal protection.

The study also features “Where did the Katrina money go?” -- an in-depth analysis of federal Katrina spending since 2005. The Institute reveals that, out of the $116 billion in Katrina funds allocated, less than 30% has gone towards long-term rebuilding—and less than half of that 30% has been spent, much less reached those most in need.

For a full copy of the report, visit here (pdf).

Two years after Katrina, Washington money not going to those in need

Today the Institute released a new report, Blueprint for Gulf Renewal (pdf), tracking the post-Katrina recovery. One of our key findings is that most Katrina money coming from Washington hasn't gotten to those most in need -- and the funding squeeze is stopping much of the Gulf Coast from coming back.

Here's a piece we did for the report, which is now making the rounds.

Two Years After Katrina, Billions in Relief Funds Are Missing
By Jeffrey Buchanan and Chris Kromm

This article is taken from the new report compiled by the Institute for Southern Studies called, "Blueprint for Gulf Renewal," giving a voice to grassroots advocates calling for greater federal accountability in the Gulf Coast rebuilding process. The report is available at: http://www.southernstudies.org/BlueprintShort.pdf.

When pressed on the slow pace of recovery in the Gulf Coast, President Bush insists the federal government has fulfilled its promise to rebuild the region. The proof, he says, is in the big check the federal government signed to underwrite the recovery -- allegedly more than $116 billion. But residents of the still-devastated Gulf Coast are left wondering whether the check bounced.

"$116 billion is not a useful number," says Stanley Czerwinski of the Government Accountability Office, Congress' investigative arm.

For starters, most federal money -- about two-thirds -- was quickly spent for short-term needs like debris removal and Coast Guard rescue. As Czerwinski explains, "There is a significant difference between responding to an emergency and rebuilding post-disaster."

That has left little money for long-term Gulf Coast recovery projects. Although it's tricky to unravel the maze of federal reports, our best estimate of agency data is that only $35 billion has been appropriated for long-term rebuilding.

Even worse, less than 42 percent of the money set aside has even been spent, much less gotten to those most in need. For example:

* Washington set aside $16.7 billion for Community Development Block Grants, one of the two biggest sources of rebuilding funds, especially for housing. But as of March 2007, only $1 billion -- just 6 percent -- had been spent, almost all of it in Mississippi. Following bad publicity, HUD spent another $3.8 billion on the program between March and July, leaving 70 percent of the funds still unused.

* The other major source of rebuilding help was supposed to be FEMA's Public Assistance Program. But of the $8.2 billion earmarked, only $3.4 billion was meant for nonemergency projects like fixing up schools and hospitals.

* Louisiana officials recently testified that FEMA has also "low-balled" project costs, underestimating the true expenses by a factor of four or five. For example, for 11 Louisiana rebuilding projects, the lowest bids came to $5.5 million -- but FEMA approved only $1.9 million.

* After the failure of federal levees flooded 80 percent of New Orleans, the U.S. Army Corps of Engineers received $8.4 billion to restore storm defenses. But as of July 2007, less than 20 percent of the funds have been spent, even as the Corps admits that levee repair won't be completed until as late as 2011.

The fact that, two years later, most federal Katrina funds remain bottled up in bureaucracy is especially shocking considering that the amounts Washington allocated come nowhere near the anticipated costs of Gulf rebuilding.

For example, the $3.4 billion FEMA has available to recover local public infrastructure would only cover about one-eighth of the damage suffered in Louisiana alone. But this money is spread across five states -- Alabama, Florida, Louisiana, Mississippi, and Texas -- and covers damage from three 2005 hurricanes, Katrina, Rita and Wilma.

Congress has acted on some of the money holdups, like changing a requirement in the Stafford Act that mandates local governments pay 10 percent of rebuilding projects up front before receiving federal aid. The Bush administration had refused to waive the rule -- like it did for New York after 9/11 -- grounding countless projects. The effect of the rule was particularly devastating in the hardest-hit places like Mississippi's Hancock County, where communities lost most of their tax base after the storms.

Many in Washington claim that state and local governments are to blame: The money's there, they say, but the locals just aren't using it. And it's true that there have been problems below the federal level. For example, Louisiana's "Road Home" program -- created by Congress but run by the state -- has been so poorly managed that 18 months after the storms only 630 homeowners had received checks. Closings have sped up since then, but administrators admit many won't see money until 2008, if at all -- the program is facing a projected $3 billion shortfall.

But the White House and Congress have done little to exercise oversight of these federally backed programs, much less step in to remove red tape and make sure taxpayer money gets to its intended destination.

This is especially true when it comes to tax breaks and rebuilding contracts. Included in the $116 billion figure is $3.5 billion in tax breaks to jump-start business in Gulf Opportunity Zones -- "GO Zones" -- across 91 parishes and counties in Alabama, Louisiana and Mississippi. But many of the breaks have been of questionable benefit to Katrina survivors, like a $1 million deal to build 10 luxury condos next to the University of Alabama football stadium -- four hours from the Gulf Coast.

Federal contracts for rebuilding and recovery have also been marked by scandal, fraud and abuse. An August 2006 study by the office of Rep. Henry Waxman, D-Calif., identified 19 contracts worth $8.75 billion that experienced "significant overcharges, wasteful spending or mismanagement."

For thousands of Gulf residents, the end result is that federal support for recovery after Katrina's devastation has been insufficient, too slow and hasn't gotten to those most in need.

"Where did it go?" says Tanya Harris of ACORN in New Orleans when asked about the $116 billion. "Tell me. Where did it go?"

Jeffrey Buchanan is communications officer with the Robert F. Kennedy Memorial Center for Human Rights. Chris Kromm is executive director of the Institute for Southern Studies. This report was part of ISS's "Blue Print for Gulf Renewal."

Modern-day slavery on the Gulf Coast

Since Hurricane Katrina, many employers on the Gulf Coast have turned to the federal H2B "guestworker" visa program to meet their need for employees. But labor rights advocates have long warned that the program is prone to abuse, since it ties foreign workers to a single employer for the entirety of their U.S. stay, creating a relationship of extreme dependence that's ripe for exploitation.

Today we got word from folks with the New Orleans Worker Justice Coalition about allegations of extreme abuse involving a Pascagoula, Miss. law enforcement official, a Texas shipyard, an Alabama labor recruiter and 30 Mexican men who came to this country looking for an opportunity to better support their families. Instead, the Mexicans are now hiding in New Orleans, without work or money.

The next time you hear President Bush or other politicians calling for expanding "temporary worker" programs, remember that this is what they're talking about:

For Immediate Release
August 22, 2007
New Orleans, LA
Contact: Saket Soni – 504 881 6610

Pascagoula Police Captain Kidnaps Guestworkers

Mexican H2B visa workers charge ranking officer with kidnapping, kidnapping with intent to enslave, false imprisonment, and gross civil rights abuses; File Notice of Intent to announce that they will bring major lawsuit.

More than 30 Mexican nationals who entered the country on H2B visas were kidnapped in Pascagoula, Mississippi by Captain George Tillman of the Pascagoula police department and a US labor recruiter.

Workers and advocates charged Tillman with State and Federal crimes kidnapping, kidnapping with intent to enslave, false imprisonment, human trafficking, and violations of the workers’ civil and constitutional rights. They filed a Notice of Intent declaring that that they will sue Tillman and the Pascagoula Police Department.

Workers released a formal statement today that recounted their journey as guestworkers across the post-Katrina Gulf Coast:

We are welders and pipefitters from Veracruz, Mexico, who entered the United States on H2B visas in July 2007. We are fathers and husbands, with families to feed. Like all workers we came to the United States because of economic desperation. We are here to feed our children, to send money to our families. We came to work for a Texas shipyard called Southwest Shipyards, LP.

Within days of our arrival we realized that recruiters had lied to us about the living and working conditions in the United States. Several of our co-workers sustained life-threatening injuries on the job. One man was electrocuted. When we organized to ask for safer conditions, we were threatened.

Faced with retaliation, we ran away from Southwest. We went to Alabama, where a recruitment agency named Black Hawk promised us jobs. We signed up with Black Hawk, but the agency packed all 30 of us in two trailers in rural Alabama -- and abandoned us. We stayed in the trailers for 6 days without food or transportation.

Desperate again, we escaped from the Alabama trailers to Pascagoula, Mississippi. There we were kidnapped by Captain George Tillman of the Pascagoula Police Department.

On the night of August 2, 2007, Captain George Tillman of the Pascagoula Police Department arrived at our doorstep in uniform, with his badge and gun. He was accompanied by another officer and the recruiter from Black Hawk. Tillman told us that the recruiter from Black Hawk was our "owner," and that we had to go with him. He said that if we didn't, we would face prison and deportation.

We resisted. But we were forced to pack our bags and get into vans. We were transported to a new location. Tillman and the others packed all 30 of us into three rooms. He warned us that the area would be monitored by the police.

The next morning the recruiter returned to take mugshots of us and videotape us. With the help of several organizations, we escaped, hid in a Walmart, and eventually fled to New Orleans, where we have been living in hiding without work or money.

Workers and advocates challenged federal officials to recognize that the H2B program is creating slave-like conditions for workers across the Gulf Coast. Thousands of guestworkers have arrived to work for US companies after Hurricanes Katrina and Rita, said Daniel Castellanos, organizer with the Alliance of Guest Workers for Dignity, a Gulf Coast-wide organization of guestworkers. "I am a guestworker and I know the realities of the H2B visa," said Castellanos. "We are brought here on false promises. Our members report being sold, being kidnapped, being told they are owned. Meanwhile survivors of Katrina and Rita are still shut out of work two years later. The federal government is allowing this. They’ve traded the old slaves for new slaves."

Nsombi Lambright, director of the American Civil Liberties Union-Mississippi called on Mississippi lawmakers to ensure that legislation outlawing kidnapping and human trafficking are enforced. "We can't leave it up to conscience to ensure that people of color and poor people are protected from the hundred of Tillmans out there. We have laws. They need to be enforced."

Workers and advocates called on US Attorney General Alberto Gonzales to investigate the abuses of civil and constitutional rights guestworkers face in the Gulf Coast. Advocates pointed out that law enforcement seldom protects and often intentionally violates the civil rights of H2B visa workers. "Corporations, law enforcement agencies, and recuiters work hand-in-glove to coerce and control workers. Police often enforce company policy, not US law," said Bill Chandler, director of the Mississippi Immigrant Rights Alliance.

Saket Soni of the New Orleans Workers' Center for Racial Justice called Tillman's actions "immoral, unjust, illegal -- but not uncommon. Tillman's abuses tell us we need policy changes in Washington DC. But meanwhile, Tillman's going to have to pay up in Pascagoula."