With $23.5 billion in federal funds, you'd think even Mississippi would have enough to finally uplift the conditions of its lowest-income storm victims. As a local paper reports today,
It's enough money to buy two average-sized houses for each of the 65,000 families in Mississippi who lost their homes.
And, there would be enough left over to buy each family a brand-new Honda Accord to drive between their two $166,000 houses. That's the EX-L, V-6 four-door sedan Accord, with all the extras and navigation, not a base model.
You'd be wrong. Having it is one thing, but spending it where it's needed is another.
A coalition of advocacy groups has found that Mississippi has underspent the federal disaster reconstruction funds on lower income residents by close to a billion dollars, giving the state the benefit of every doubt. Coincidentally, about $1.3 billion remains.
More details and how to take action below.
Update: Media Matters picked up the story and links to this blog.
But wait, isn't Mississippi a success story? Hasn't it handed out $1 billion to almost 15,000 homeowners already?
Yes, $1 billion has gone out the door for homeowners with insurance. So has another $2 billion for economic and community revitalization and this $3 billion dollars was exempted from a Congressional mandate to spend at least half the $5.4 billion appropriation ($2.7 billion) to primarily benefit lower income storm victims.
Right now, Mississippi has dedicated $1.1 billion to three programs that target lower-income residents to some degree. These funds have trickled out at a snail's pace.
Two years after the hurricane, only $55 million - 5% of those funds in any of those three programs- has actually reached the bank accounts of 787 households in need through a so-called Phase II homeowner grant program. And at the current pace, it will be years before the 11,000 eligible applicants receive their money.
At an absolute minimum, it would be necessary for Mississippi to spend $864 million on lower-income targeted programs to bring things back to a 50/50 balance. That's if you give Mississippi the benefit of every single doubt that lower-income storm victims share benefit proportionately from the general purpose programs. It's all spelled out here in a report by the Steps Coalition, an alliance of organizations aiming for a just, equitable, and sustainable recovery.
We think the number is closer to a billion. After all, three billion or 60% already has gone out without any income testing. Doesn't seem too much to demand that Mississippi at least hit 40% in lower income spending.
No one we know will walk into a cramped formaldehyde-laden FEMA trailer and say with a straight face to any of the 18,000 households whose own recovery is on hold, "Hey, be patient you indirectly benefit from the great and glorious reconstruction of Mississippi coast's economy and infrastructure. Things will be swell when you get out." That is cruel and unusual punishment.
What these good and deserving lower-income families need is for Mississippi to spend most of the remaining CDBG funds on restoring wind damaged homes, repairing small rental units in their communities, building affordable multifamily rental housing, and supporting non-profit housing groups that will put affordable housing into areas where the market and developers don't want to go.
If you agree, send a message to Governor Haley Barbour 1-877-405-0733 or 601-359-3150, or by mail at: P.O. Box 139, Jackson, Mississippi 39205. Tell him to spend $1 billion more on lower income storm victims' needs.