President Barack Obama’s administration today announced the creation of three-judge panels to settle big-ticket infrastructure funding disputes between the Federal Emergency Management Agency and state and local governments still rebuilding from the 2005 Gulf Coast hurricanes. Congress this year authorized creation of an arbitration system for infrastructure projects related to hurricanes Katrina and Rita. U.S. Sen. Mary Landrieu, D-La., was among those pushing for a way to end the drawn-out bickering that had bogged down projects—and led to bad feelings among officials at various levels—and to speed the flow of funds to get roads, buildings and other infrastructure rebuilt.
FEMA currently handles appeals. That process can take months.
The goal of the new panels is to decide disputes about projects worth more than $500,000 within 60 days; decisions would be binding.
FEMA expects the process to be in place, and ready for state and local officials to take advantage of it, by month’s end, around the fourth anniversary of Katrina.
Potentially dozens of projects currently in appeal could be transferred to arbitration, including, perhaps, the controversial former Charity Hospital in New Orleans. The state believes it’s owed nearly a half-billion dollars, essentially replacement value, for the hospital shuttered since the August 2005 storm. To date, FEMA has offered about $150 million, arguing, among other things, that not enough was done to guard the building against additional damage after Katrina.
