Gov. Barbour Urges Lawmakers Not to Rely on ‘One-Time Money’

Mississippi Gov. Haley Barbour has warned lawmakers not to rely on “one-time money” granted by Congress to aid in Hurricane Katrina recovery and outlined how the money would be used.

Congress appropriated $29 billion to help Mississippi, Louisiana, Texas and Alabama recover from hurricanes Katrina, Rita and Wilma.

The governor told the Jackson, Miss. Clarion-Ledger that the money would be used for grants to homeowners who lost houses to water damage to rebuilding sewer systems in south Mississippi to replacing school districts’ lost tax bases.

“We have to be careful how we’re spending the one-time money,” Barbour told a joint meeting of the Mississippi House and Senate. “One-time money is something you can get hooked on and we don’t want to get hooked on it again.”

As lawmakers draft a state budget during this session, they’ll have to remember federal aid will diminish in future years, he said, and Mississippi will have to match some of the federal aid with its own revenue.

Barbour thanked fellow Republicans U.S. Sens. Trent Lott and Thad Cochran and 3rd District Rep. Chip Pickering for their work in Congress. Lott and Pickering attended the speech that lasted about an hour as the governor fielded calls from representatives and senators.

Coastal homeowners whose houses were flooded, though they were not in a federally designated flood zone, will be eligible to apply for maximum $150,000 grants.

Barbour said he anticipates 35,000 homeowners to qualify but the number could increase.

“This is a very rough estimate,” Barbour said. “We may have to make adjustments. We think we should be OK.”

The U.S. Department of Housing and Urban Development still is crafting regulations for the unprecedented program.

Initial plans from state officials require applicants to live outside the federal flood zone and suffer damage in a primary residence.

They must use the money to rebuild a primary residence to higher building codes standards and carry flood insurance, he said.

Topics Legislation Flood Mississippi