The Blanco Mystery And The Louisiana Road Home Program

Yesterday, when I suddenly received Governor Kathleen Blanco’s statement concerning ICF and the Road Home program, I must admit, I was rather surprised.

What struck me was her adamancy that the Louisiana Road Home program was so important to her, yet, she appeared out of the loop on the real knowledge or information regarding the final details of the program. Following her statements (which we are placing in italics) are my own comments which underscore my own uncertainties with her statements and the program, in general:

Governor Blanco said, "The number one priority must be to complete the Road Home Program so the homeowners who have waited so patiently have their money in hand.”.

The Road Home program started in the summer of 2006. After many hiccups and with only a few hundred homeowners going to closing as of the early months of 2007, currently, more than 103,000 homeowners have closed on their grants. Although a Rand Gulf South Policy Institute report yesterday appears to show an emphasis on closings as a major criteria in the handling of claims and while many homeowners have been and still are in the dark over the status of their applications, the program is clearly moving forward (although sporadically) and the homeowners program should be completed this year although there is no doubt disputes over the amounts granted.

“It was my understanding and belief that any contract change would be publically noticed.”

The key questions are the following:

How did she receive this “understanding” that a contract change would be publically noticed? What process did her administration go through to ensure public notice? Relevant agencies have claimed that they did not receive any public notice until after the contract change. So, who dropped the ball on the possible lack of public notices? Lastly, what did Governor Blanco mean by “public notice” in the information age? Did she mean that the notices would be publicized by electronic mail, on web sites, in the newspapers, on her own web site? Without doubt, although the Road Home program is moving along much faster than before, there is a definite disconnect between Governor Blanco’s actual knowledge and her reference to “public notice”.

Governor Blanco also said that she “encourage Steve Theriot, the Legislative Auditor, whose office was consulted during negotiations, to continue to audit ICF and to hold them accountable for every dollar of their contract.”

Did Governor Blanco mean that Steve Theriot knew of a possible increase to the contract? Did she want him to audit past or future performances post increases of which various relevant government agencies said they had no knowledge.

Governor Blanco also stated, This contract is not a pay raise. (Emphasis by Bayoubuzz) As I understand it, the contract provides for a unit cost based on actual closings.

Although the current head of the LRA, Paul Rainwater, clearly is calling the increase a “pay raise” it certainly appears to have been a “contract change” as noted by her earlier statements which she said ““It was my understanding and belief that any contract change would be publically noticed.”.

Last, Governor Blanco said, “I applied personal pressure every day to reach the pace of a minimum of 10,000 closings per month. At this rate, ICF would need to close a minimum of 120,000 closings by the end of March. Anything less is unacceptable, and it is my hope that the current Administration holds ICF's feet to the fire. They can and should renegotiate performance standards. ICF has been given every opportunity to deliver."

From this statement, it is appears that Governor Blanco engaged in a “contract change” but, she is suggesting that the Jindal administration ensure that ICF adheres to all performance requirements.

Unquestionably, Louisiana’s is embarking on a full investigation of the ICF contract which should include how and why they were granted the contract in the first place. Included in the investigation should be any actions or lack thereof of the Jindal transition team including whether they took initiatives to determine any contract changes and whether they were “publically noticed.

However, of utmost importance is how any contract change might have taken place, who had knowledge of any changes and whether ICF is entitled to any increases based upon their performances.

The Road Home has been one of the sorriest experiences in Louisiana history. It was born out of President Bush’s rejection of the Baker plan and covered a catastrophe that this country has never before witnessed. It allowed ICF to engage in the process of putting together the plan and the bid and then suddenly permitted them to bid on the contract. The Republican legislative leadership commented upon the ethical underpinnings of the bidding process, although, it was approved by the Ethics Commission.

It is too early to determine if any penalties should be vetted or whether any individuals should be simply publically embarrassed. However, it is clear that the program was unprecedented, ended up hurting many people’s faith in the rebuild process, has achieved some successes with the prodding of Governor Blanco, but mandates a full understanding of the complexities and interrelations among agencies. The good news is that the program is approaching completion in relative terms. The bad news is hurricane season is right around the corner and South Louisiana is still very vulnerable for future natural and “man-made” catastrophes which could include post-disaster housing programs.

_____________________________________________
_________________Advertisement________________

______________________________________________