FEMA reported the federal government has forgiven $391 million in disaster loans for Louisiana concerning Hurricane Katrina. Orleans, Jefferson and St. Tammany parishes are sharing in the loan cancellations. Senator Mary Landrieu was the sponsor of two bills that made the transaction possible.
This is another reason why the federal government has to spend money as most states can not afford to finance distasters themselves with out raising taxes or cutting spending. The federal government has always taken the lead role concerning disasters and is nothing new.
The reason it took a little longer for the federal government to forgive the $391 million was the republican controlled congress that approved the funding after Hurricane Katrina stipulated there would be no loan forgiveness for the very first time ever. That was in 2005 when the republican party also controlled the White House. Senator Landrieu thought that was unfair to go against precedent already established by congress.
Governors who complain about the federal government spending too much money can help when a disaster hits their states by paying for the damage from state funds. I don't look for that to happen because they would rather beat up on the federal government and because they promised not to raise taxes.
But is it too much to expect governors to have the character and courage to admit there are legitimant reasons why the federal government does spend a lot of money?
This commentary written by John Lucia
