Rebuilding New Orleans Is Slow Going

(CBS)  Hurricane Katrina and its aftermath caused an estimated $150 billion in Gulf-wide damage and turned New Orleans into one giant disaster zone.

Frustrated by the slow pace of recovery, some people decided to take matters into their own hands. Women of the Storm, an organization that is 600 members strong, has served as tour guides for 187 members of Congress.

"No one can understand the magnitude of the devastation or the challenges unless they see it block by block, mile by mile," says member Anne Milling.

CBS News anchor and managing editor Katie Couric found the city has less than two-thirds the population it once did. The now-infamous Lower Ninth Ward, horribly flooded when the levees burst, is still a vision of devastation. New Orleans East, where few still venture, is no better.

Couric visited an apartment complex in New Orleans East that had 32 apartments before Katrina hit. Little has happened there since then. All that's left is the shell of a building - bricks, mortar and two-by-fours.

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Eye To Eye: Katrina's Crusading Women

Learn more about Women of the Storm

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"We are in Lakeview now, right now the 17th Street canal breach," explains Milling. It's still a mess.

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CBS News Poll: Little Progress Seen Since Katrina

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Couric found there are as many as 120,000 buildings that still need demolition, but the federal program to handle it will end in October.

Many neighborhoods are just starting to come back.

"So when will this be back in business?" Couric asked about a shopping mall.

"We have no idea," Milling said. "But in order for these shops to open, they need people. And in order for the people to come back, they need homes and houses. And that hasn't happened."

After the hurricane, President Bush promised to rebuild.

"We will do whatever it takes," he said.

But has the president kept that promise?

$116 billion in recovery dollars have been earmarked for the Gulf region, almost $60 billion of it to Louisiana alone.

Nearly $20 billion was spent in the state on disaster relief. Another $13.5 billion was paid in flood insurance.

Finally, $25.5 billion was allocated for rebuilding.

Yet, of the $116 billion promised, only $6.78 billion has actually been spent on rebuilding New Orleans."The state has tried so hard to prevent even the appearance of any graft or corruption, that they've just put layer upon layer on the individual to go through these hoops," Milling says. The result? The money never gets to the people who need it, she says.

Less than half of the city's public schools have reopened. Many are worried about a health care system that is still in critical condition, as well as skyrocketing crime. As for those famous levees: They are still being rebuilt at an expected cost of $15 billion, complete with maps predicting future flood danger.

Donald Powell, the federal czar appointed by President Bush to oversee the recovery, concedes the project won't be completed until 2011 - four hurricane seasons away.

"These maps will show at what level of risk they are after these levee systems have been improved. And that's powerful. Information is powerful," Powell said.

"If I looked at those maps, I may not want to come back until 2011," said Couric.

"That's a decision you would have to make," he said.

Powell blames state and local officials for not keeping the money flowing. Those officials blame the federal government. But even the most enthusiastic boosters admit that if there is a comeback, it will take years.

"It's not going to be the same," Milling said, "but it is going to come back."

The rebuilding is being seen by many people as an opportunity to fix a number of problems in public housing, education and health care that existed before Katrina.

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Wednesday, in part two of our series, a look into how the federal government is spending tens of millions of dollars to make New Orleans safe, but crime is worse than ever.

[oakishpines]

'' ... putting women in mens armys did not turn men into gardenets, it turned women into rapists of husbands and children ... putting children into armys does not turn women and men into gardenets, it turns children into parent rapists ... if men are to treat children with respect, then men are to start acting like children ... and are to start treating two year olds like two year olds ... ''

'' ... all the front pages would have been covered in photos of local children dancing get well feed world songs rallied around the sick beds drifting the farm trails, except a terrorist warned against it ... ''

[jlnooney]

"Government does not solve problems. It subsidizes them." --Ronald Reagan,
(From a speech on 11th December, 1972.)

[jlnooney]

"Government is not the solution to the problem. Government IS the problem." --Ronald Reagan

[jdubs63]

Personally I would be so embarassed that after 2 years I did not move on with my life or did something........

[slaguy]

So what your saying is because I said 4th and 5th generation welfare, that makes me an ignorant racist? I never once said any reference between black or white. Why even throw in the race card?

[kevboom]

"When will people in this country start taking the resposibilty for their actions and quite sitting on their ***** and wait for someone else to bail them out."

It''s not like someone born into third world poverty in the lower ninth ward had a whole lot of choice where they lived in this country. Half of them didn''t even have cars to evacuate. It''s a different world you obviously don''t understand. People who think it''s so easy to pull one''s self out of poverty have probably never had to do so. America can waste $100 billion every 6 months on a wasted Iraq war, with much going into the pockets of very wealthy military contractors, but it can''t loan $20,000 to a family of eight to rebuild a shack. Yeah, we can criticize government hand-outs and tell people they''re own their own, but if we''re going to take that hard line, let''s do it the world-round and stop wasting aid on the likes of Iraq, Saudi Arabia, and Israel, who have gotten more taxpayer dollars in a year than our own people in New Orleans will see in a lifetime. Racists regularly call loans to a poor black family in New Orleans a "hand out." But if you want to talk about "hand outs," let''s talk about Republican hand outs. There''s plenty of money going out my friend, just to Bush''s favorite contractors, with much of it conveniently unaccounted for. Who do you want your tax dollars to go to... our own people or wealthy companies and foreign nations? Your next vote can help to decide.

[cadareed]

It used to be called "AID". When did it become the governments responsibilty to rebuild your house. I didn''t force you to buyild in a flood plane. When will people in this country start taking the resposibilty for their actions and quite sitting on their ***** and wait for someone else to bail them out.

[slaguy]

First off MyIDonCBS do you recall Rita?? I sure do it took my home, But instead of complaining to the Feds I rebuilt. But you dont hear anything ever about Rita because it didnt affect 4th and 5th generation welfare reciprients. I am not fat nor ignorant im just honest. Im sure you dont live in the state of Louisiana so its easy for you to pass the buck of responsibility over to the Feds. Its not hard to support yourself. But i guess its just easier to depend on others for support.

[myidoncbs]

BTW,

Many of the insurance companies claim that the hurricane was an "Act of God" and so they aren''t paying ANYTHING for restorations!

[myidoncbs]

BTW,

Many of the insurance companies claim that the hurricane was an "Act of God" and so they aren''t paying ANYTHING for restorations!