Rebuilding Gulf Coast the right way

Editorial from the Austin American-Statesman:

Although President Bush and other officials indicated that local businesses would be used to rebuild communities decimated by the hurricane to help boost their economies, most of the business went to companies outside of the region. That is a trend that should be reversed. The region is counting on the billions of dollars in reconstruction work to lift itself economically, and its companies should be first to profit from the area's rebuilding.

An analysis by The Washington Post of the first wave of federal contracts signed after the storm hit showed that more than 90 percent of the contract value had been given to companies located outside Louisiana, Mississippi and Alabama, which were ravaged by Katrina. The agency's reputation had been badly damaged after its lackluster and slow response to Katrina victims trapped in New Orleans and other Gulf Coast cities. The last thing it needed was another scandal or the hint of one.

The public soon learned that FEMA had spent $250 million to charter cruise ships for emergency housing, and those ships were only half full. The public also learned that the agency spent $100 million for ice, much of which was not used. In all, Congress awarded $62 billion for recovery, the most expensive in the nation's history, and it's important that there be accountability and transparency in handling the public's money.

FEMA Director David Paulison's decision to rebid contracts and set aside major reconstruction work for companies in the affected region will help restore credibility to the process.