9/11 Reconstruction Watchdogs Issue Warning About Hurricane Katrina Rebuilding Plans
Gulf Coast Leaders Urged to Consider Equity and Accountability As Recovery Plans are Laid
New York - Three watchdog groups, including two in New York that have monitored the post-9/11 reconstruction of Lower Manhattan, today cautioned Gulf Coast members of Congress that they should closely monitor the design of Hurricane Katrina aid packages so that low- and moderate-income people, dislocated and unemployed workers, and small businesses are treated fairly.
In New York, the groups warn, most of the $20 billion allocated for economic development has benefited real estate developers and wealthy neighborhoods. The letter is at: <http://www.reconstructionwatch.net/openletterpage.htm>. Their previous studies reveal that federal rebuilding subsidies have fueled gentrification and wage polarization in New York City.
The groups are Good Jobs First (GJF, which promotes accountability in economic development nationwide), the Labor Community Advocacy Network (LCAN, a network of more than 60 New York groups coordinated by the Fiscal Policy Institute a nonpartisan research and education organization), and Good Jobs New York (GJNY, which has monitored post-9/11 reconstruction monies through its Reconstruction Watch project).
"The survivors of Hurricane Katrina deserve better than a knee-jerk raft of tax breaks for big businesses that will ultimately shift the tax burden to small businesses and working families," said Greg LeRoy of GJF and author of the new book The Great American Jobs Scam.
"After 9/11, rules that normally restrict federal funding to primarily benefit low- and moderate- income communities were stripped out, so that the money could legally go to large businesses and wealthy neighborhoods," said Bettina Damiani of GJNY. "As a result, these funds have yet to create one unit of affordable housing or one good new good job for low-income residents of Lower Manhattan."
"Today, wages for low-income workers in our city are the same as in 2001, while people earning over $150,000 annually have seen a wage increase," said David Kalllick of LCAN. "Considering the vast sum of money earmarked after 9/11, low-income workers should have gotten a leg up."
To avoid a replay of such outcomes, the groups urge legislators and residents to immediately organize a rebuilding plan that encourages broad public participation, strict rules targeting benefits to the most vulnerable survivors, and accountability safeguards.
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Greg LeRoy Executive Director Good Jobs First