Sound the Alarm on Gulf Reconstruction

Yesterday, Mayor Ray Nagin of New Orleans sent out a letter announcing that the city was laying off 3,000 city employees -- half the city's workforce -- "as a result of financial constraints in the wake of Hurricane Katrina."

This is the latest in a series of signs that the "reconstruction" of New Orleans is going in a very dangerous direction. And it should serve as a wake-up call to progressives that the time is now to fight for a better future in the Gulf.

The strip-down of New Orleans' city government, of course, is completely unnecessary. Nagin said the move will save the city "$5 million to $8 million in salaries a month." Spread out over a year, that's still $22 million less than FEMA paid truckers to haul around ice after the hurricanes and was never delivered. It's $158 million less than FEMA's scandal-ridden deal with Carnival Cruise Lines to house Katrina evacuees.

So there's money out there. Nagin claims he asked for state and federal support to stave off the layoffs but was spurned, which can partly be chocked up to Nagin's lack of clout and political savvy. But above all it's state and national leaders have shown little interest in maintaining the public infrastructure of New Orleans.

In his press conference yesterday, Bush spelled out his philosophy: "The engine that drives growth and job creation in America is the private sector and the private sector will be the engine that drives the recovery of the Gulf Coast." So much for the public sector.

Louisiana's bi-partisan Congressional delegation hasn't been much help, either. While Nagin was asking for a quick infusion of funds to keep city workers on salary, Louisiana's leaders were fixated on a massive, catch-all request for $250 billion that is getting bogged down in controversy on the Hill.

But this goes deeper to the question of what road to reconstruction will win out in the Gulf. Public sector jobs with good wages and benefits are just the kind of economic "anchor" the region needs right now -- especially for African-Americans, who have found opportunities in government jobs they can't find elsewhere.

In fact, New Orleans has a perfect opportunity to think about fresh new ideas for city government in the wake of Katrina. How many families and neighborhoods would be helped with a well-funded city "service corps" that paid city residents to get involved in the renewal of New Orleans -- fixing homes, refurbishing schools and cleaning up parks? It would do more for the local economy than the contracts going to businesses outside the region.

Dismantling city government is a dangerous quick-fix, a move that sets a dangerous precedent for further undermining civic institutions vital to Gulf reconstruction. It should have been fought and avoided at all costs. Instead, it looks like leaders in both parties silently -- and needlessly -- went along.

The whole episode reveals the two clear choices before us for Gulf reconstruction: On one side, a road that hands over the reins to powerful interests seeking profit and political advantage. On the other hand, a road that values democracy and investing in the public good.

Each day, the progressive vision of rebuilding this critical region in the South is losing ground. What will it take to turn that around?

(couple small updates 4:42 pm)