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Thursday, June 14, 2007

Here's what your "reform" gets you

The much celebrated levee district reforms passed last year largely because they promised to "take the politics out of flood control." Now it appears that one direct result of this reform is a new fight over which political entity will reap the benefits of the levee district's divestiture of its "non-flood" assets. And, yes, of course the city is one of the potential scavengers.
Add New Orleans Mayor Ray Nagin to the growing list of contenders seeking control of the financially hammered Orleans Levee District's vast real estate portfolio, including Lakefront Airport, two marinas and miles of valuable waterfront property.

The decision by Nagin's administration to join what some observers in Baton Rouge call a "feeding frenzy"over the levee district assets adds yet another variable to the complicated debate among state lawmakers struggling to forge a consensus as the 2007 legislative session heads into its final two weeks.
So a measure to "remove politics" from management of these properties merely shifts control from one political entity to another.... likely worse.. political entity.

But wait, say the "reformers", the idea was to remove the Levee District from these peripheral (and allegedly "corrupting") responsibilities in order that it may focus on its core mission of flood-control. What does managing an airport and marina have to do with that? Well... as it turns out.. quite a bit.
Before Hurricane Katrina, the non-flood assets provided about 40 percent of the Orleans district's revenue. But much of the district's revenue generating property remains dormant 21 months after the storm; property tax collections also remain down.

"The non-flood assets have always provided support for the flood side of things, and whether through levels of bureaucracy, layers of management, or excessive fees, a third party could eliminate any return of money for flood-fighting," said authority treasurer Tim Doody, a certified public accountant who lives in St. Bernard.

"If you put it with any political group, their main goal will be to create jobs, and when that happens, you're probably not operating efficiently, and you are then impacting flood protection," Doody said. "I've said all along that nobody will have an incentive to turn a profit (to be funneled back into flood control). Why would they?"
Wow so levee district "reform" has managed not only to increase the potential for patronage and corruption involved in the management of levee district assets, but also decrease revenue dedicated to flood protection. That's a neat trick. Way to go, guys.

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