It looks to have been a combination of the outright elimination of the very program -- Project Impact -- that was responsible for exactly this type of situation, and a larger shift of FEMA's focus from natural disasters to homeland security / counter-terrorism. The Bush administration axed Project Impact in 2001. Jordan mentioned the depressing irony of having the high-water vehicles from the LA National Guard currently sitting in the desert in Iraq... on the same general note:
"In February 2001, for example, the Bush administration proposed eliminating Project Impact, a move approved by Congress later in the year. (On the very day the White House proposal was submitted, a magnitude 6.8 earthquake rocked Washington state, which was home to several communities where Project Impact had sponsored quake mitigation efforts.)"
That's from Google's cache of a lengthy article on the FEMA cuts in "Best of New Orleans" -- the site is currently down, probably due to lack of power.
But this isn't just about budgeting and scoring political points. A friend recommended John McPhee's account, in "The Control of Nature," of the failed attempts of the Army Corps of Engineers to control the (then-)potential flooding damage in New Orleans.
<http://www.nytimes.com/books/98/07/05/specials/mcphee-control.html>
-- Matthew Snyder Philadelphia, PA