Reports - Mississippi Renewal

Governor’s Commissionon Recovery, Rebuilding, and RenewalJim Barksdale, ChairmanDerrick Johnson, Vice ChairmanRicky Mathews, Vice ChairmanJoe Sanderson, Vice ChairmanJerry St. Pé, Vice ChairmanAnthony Topazi, Vice ChairmanWilliam Winter, Outside CounselCommissionersChris Anderson (Jackson)Reuben Anderson (Hinds)Chuck Benvenutti (Hancock)James Black (Harrison)Gerald Blessey (Harrison)Hank Bounds (Jackson)Felicia Dunn Burkes (Harrison)Fred Carl (Leflore)David Cole (Itawamba)Mark Cumbest (Jackson)Maurice Dantin (Marion)Tommy Dulaney (Lauderdale)Donald Evans (Harrison)Robbie Fisher (Hinds)Paul Franke (Harrison)Robert Gagné (Hancock)Richard Gollott (Harrison)Clark Griffith (Harrison)Jill Holleman (Stone)Brooks Holstein (Harrison)Warren Hood, Jr. (Forrest)James Huff (Smith)Robert Kane (Hancock)Kay Kell (Jackson)Suzy McDonald (Pearl River)Duncan McKenzie (Harrison)Pat Nichols (Harrison)John Palmer (Hinds)Bill Parsons (Hancock)Diann Payne (Jackson)Ron Peresich (Harrison)Charles Pickering (Jones)D’Auby Schiel (Harrison)George Schloegel (Harrison)Robert St. John (Forrest)Chevis Swetman (Harrison)Reginald Sykes (Harrison)Phil Teel (Jackson)Shelby Thames (Forrest)Richard Thoms (Newton)Phillip West (Adams)Dayton Whites (George)Glade Woods (Pearl River)Commission StaffHenry Barbour, Executive DirectorBrian Sanderson, General CounselLinda ByrdJoe CloydLeigh Ann CoxEmily FairDebra GrubbsWill LongwitzThomas PeedeKen SonesJohn SullivanStephanie TrappClay WagnerTrent Walker© 2005 This document is copyrightedmaterial and produced by the Governor’sCommission on Recovery, Rebuilding &Renewal, a Mississippi nonprofit corporation.Pursuant to applicable federal and statestatutes, laws, and regulations, this documentmay not be reproduced, disseminated, sold,or republished without the prior writtenconsent of the Governor’s Commission.

Committee MembersInfrastructureCommitteeAnthony Topazi, CharimanLand UseGerald Blessey,Subcommittee ChairJimmy AlexanderLarry BarnettCarl ChaneyCharles ChisolmJody ComprettaMark CumbestDerrick EvansBob FairbankRobbie FisherJoe HudsonRobert KaneDorothy McClendonMartha MurphyRon PeresichBill StallworthJudy StecklerBen StoneBill WalkerGene WarrIntermodalTransportationGeorge Schloegel,Subcommittee ChairJohnny AthertonDon AlleeLollie BarnesButch BrownKevin CogginFrank GenzerClarence GoodenJohn HarralRichard JonesGreg LuceMark McAndrewsPat NicholsTom SandersEd StettiniusHal WaltersSue WrightChuck UeltscheyPublic ServicesBob Occhi,Subcommittee ChairSonny AdolphJill BenekeDaryl BrownFelicia Dunn BurkesMichael CallahanJames CrowellTodd DavisonSteve DayGeorge EichertSally WilsonMary GrahamLee HedegaardHank JonesMalcolm JonesKay KellDavid LitchliterWillis LottKamran PalahavanGeorge PhillipsKaren SawyerJoe SpragginsRick StewartPat SullivanRoger WilliamsonGlade WoodsHousingCommitteeFred Carl,Co-ChairmanJohnWalton,Co-ChairmanBill BynumJames CrowellFelicia Dunn BurkesJerry JohnsonDerrick JohnsonBen MokryReilly MorseTourismCommitteeRicky Mathews,ChairmanJerry AlexanderDrew AllenAnita ArguellesWoody BaileyLolly BarnesRomeo BrownBeth CarriereMartha CollinsKim ComptonScotty CuevasRip DanielsDave DennisKevin DrumAngie DvorakReed GuicePaige GutierrezLaura HastyTim HinkleyLinda HoldenBill HolmesBrooks HolsteinAl HopkinsLinda HornsbyErroll HotardJohn JagunichBrynn JoachimJohn McFarlandCarole Lynn MeadowsMargaret MillerEd MorganJoan MurphyDiana O'TooleDiane PeranichValerie QuinnCraig RayWilliam RichardsonStephen RicherTina ShumateAngie SingletonMoby SolangiKen SpiritoRobert St. JohnChevis SwetmanAlex ThomasJanelle TompkinsJessica UpshawDavid VowellSusan WalkerGeorge WatsonPhillip WestRich WestfallClay WilliamsTish WilliamsRoger WilliamsonSmall BusinessCommitteeDuncan McKenzie,ChairmanJames L.BlackDonna BrownStan BurtonFred CarlMeredith CreekmoreRobert GagnéLeavern GuyPercy ManningJohn McFarlandGayle ParkerMorgan ShandsWindfield SwetmanAlethia ThomasCarla ToddLinda WattsMickey WilliamsNicole YuratichAgriculture,Forestry and MarineResourcesCommitteeJoe Sanderson,ChairmanBruce AltEverard BakerBrad BeanSteve BonnerVan BowmanJ.B. BrownGlenn CavesHenry CochranMike Courtney

THE GOVERNOR’S COMMISSION REPORT | iJay CuevasLarry DavisAndy DialDale DiazRichard GollottGlen HerrinJim HuffCecil JohnsonReggie MageePeter McKinleyWendell PattonMike PepperCorky PerretClifton PetersCharles PickeringRocky PullmanRobin RobinsonLaDon SwannRichard ThomsCassandra VaughnDavid WaideBill WalkerVance WatsonStanley WilliamsDanny WiseDefense andGovernmentContractingCommitteeJerry St. Pé, ChairmanNick ArdilloDirk DedeauxTom DonaldsonPaul FrankeDan GraftonClark GriffithJohn HairstonJerry HemphillRobert KaneKay KellButch KingPeter LappEzell LeeRobbie MaxwellLamar McDonaldKenny MilamGreg MitchellRocky PalmarJohn PalmerBill ParsonsPhil TeelGlade WoodsEducationCommitteeHank Bounds,ChairmanChet AllredClaiborne BarksdaleJohn BrenkeCarol BurnetteRachael CarpenterDavid ColeJason DeanAndy DialDebbie DonaldsonGlen EastJoan ExlineTommy Dale FavreCathy GraceAnna HurtPat JoachimWilliam LewisWillis LottTom LuceSue MathesonJoe NelsonGerald NorrisGail ParkerDiann PayneJeffrey ReedSteve RenfroeRucks RobinsonKim StasnyReginald SykesDon TaylorThames ShelbyForrest ThigpenPaul TisdaleHealth and HumanServices CommitteeChris Anderson,ChairmanBrian AmyPete AvaraPam BakerJeff BennettKevin BishopLarry CalvertChris CheekMary CurtisJohn DrakeAudrey DunnOkechukwu EkennaBuck FranklinE.H. Bud HenryHal LeftwichEd LeGrandKyle MadiganH.S. “Butch” McMillanBobby MoodyRobert MorrisLes NewcombJill OlsenDebbie ShearerWilliam SmithJanet StaplesDonald TaylorStephanie TaylorMarian TutorSteve WorrelMike ZiemanNGO CommitteeReginald Sykes,ChairmanDonna AlexanderOscar BarnesBishop James BlackJune BoundsLisa BradleyGail CottonKimberly CrimAlfredo CruzVanessa GibsonMarjie GowdyGene HendersonCarol HolleyCarol JonesAdele LyonsMark McCraryDiann PayneSue ReedPaige RobertsNatalie RobohmMark SchloegelJane StanleyMonica WalkerFinance CommitteeD'Auby Schiel, ChairmanReuben AndersonRonnie Artigues, Jr.Jim BarksdaleFelicia Dunn BurkesDon ClarkRick FitzgeraldGeorge FreelandJustin GoldsteinHugh KeatingTed LongoJack OppieTate ReevesDorothy ShawCandace ToddGeographicCommitteesHancock CountyChuck Benvenutti, ChairmanHarrison CountyAnthony Topazi, ChairmanJackson CountyJerry St. Pé, ChairmanGeorge CountyDayton Whites, ChairmanStone County CommitteeJill Holleman, ChairmanPearl River CountySuzy McDonald, ChairmanSouthwest MississippiPhillip West, ChairmanSoutheast MississippiJoe Sanderson, Chairman

ii | INTRODUCTIONINTRODUCTION“Out of this terribledisaster, beyond allimagination, comes ouropportunity. And Ibeg you not to letMississippi miss it. I’mdetermined we will notfail to seize thisopportunity.”-- Governor Haley Barbour, beforethe Special Session of the MississippiLegislature, September 27, 2005By Jim BarksdaleWhat happened to Mississippi in the last days of August 2005 isunrivaled in our nation’s history.Hurricane Katrina, one of the largest and most violentstorms ever recorded, cut a swath of destruction along theGulf Coast from the Alabama border west to Texas. New Orleansflooded. Mississippi took the brunt of the winds and a storm surge that roseto more than 30 feet.At least 230 people were left dead in our state. Sixty-five thousand homes weredestroyed. Churches, schools, and historic landmarks were obliterated. The keys toMississippi’s economic growth, the infrastructure of community and commerce,were so badly damaged it will take years and billions of dollars to put us back ontrack.Recovery from such unprecedented calamity requires unprecedented commitment,and Governor Haley Barbour initiated the effort immediately. He asked meto chair the Governor’s Commission on Recovery, Rebuilding, and Renewal witha mandate to explore the range of options before us and to recommend approachesthat would not only restore what was lost but, in the governor’s words, make a GulfCoast “better than ever.”Our privately funded Commission examined the work of groups appointed afterother national disasters. What we found was that in most cases, whether it wasafter the Galveston hurricane of 1900 or our own experiences with the MississippiFloods of 1927 and Hurricane Camille in 1969, merely identifying problems andsuggesting solutions weren’t enough. The fact is, we’re facing some of the samechallenges of recovery, rebuilding, and renewal in 2006 because we failed to engagethem fully after 1969.So, we take it as our responsibility not only to name the problems but also tosuggest paths of implementation and accountability. Beginning on page 165, you’llfind a table enumerating every recommendation. Alongside each are resources to be

THE GOVERNOR’S COMMISSION REPORT | iiiMississippi Governor Haley Barbour (right) and Governor’s Commission Chairman Jim Barksdale (left) listen as President George W.Bush speaks at a tent meeting held in Gulfport shortly after Hurricane Katrina hit the Gulf Coast.Photo: Courtesy Mississippi Power Companytapped and individuals or organizationsto be held responsible for achieving thegoals. To do otherwise would fall shortof the mission the governor assigned us:Forge a way through the pain this hurricanevisited on our citizens, so that in30 years, the legacy of the work we nowbegin is a Mississippi that enjoys higherprosperity and a better quality of life forall than we dared imagine before August29, 2005.The work of Commission teams overthe last four months has been prodigious.We’ve called upon the talents ofmore than 500 volunteers to serve onthe Commission, on 20 highly energizedcommittees, and on our field staffworking with citizens and communityleaders. Together, this group investedmore than 50,000 man-hours researching,listening to and debating alternatives.We crammed the work of decadesinto three months.We staged a six-day Mississippi RenewalForum where planning specialistsfrom the state and all over the worldgenerated designs and proposals that alreadyhave inspired some communitiesto begin charting their own rebuilds.After listening to all those voices and

iv | INTRODUCTIONembracing their deepest concerns, we would find it unconscionable if their hopesare unrealized because their leaders failed to make the hard choices and committhe full resources necessary to move from great ideas to meaningful action.Certainly, from our experience over the last four months, the willingness of someleaders to set the pace is inspiring. This has been the greatest outpouring of publicspirit and unselfish labor I’ve ever experienced. It would take all the pages in thisreport to name each contribution and thank each person individually. To eachcommittee chair and member, to each of the elected officials in towns and countiesthroughout Mississippi, to each person on the Commission’s hard-workingstaff, and to all the volunteers who came from around the world: Thank you. Yourreward, as you already know, is to have been a part of an unprecedented enterprise-- what might well be the most ambitious planning effort in history.Thank you, Governor Barbour, for giving us the opportunity to help.“Our mission: Forge a way throughthe pain this hurricane visited onour citizens, so that in 30 years, thelegacy of the work we now beginis a Mississippi that enjoys higherprosperity and a better quality oflife for all than we dared imaginebefore August 29, 2005.”What the Commission searched for arerecommendations for Mississippi’s renewalthat are sensible, doable, and thattruly make a difference in all our citizens’lives. The 238 committee recommendations thatfollow emerged from a healthy, participatory process.While we all may not agree on each one, together theyreflect our determination to move toward a renewalSouth Mississippi that includes everyone.There are several common themes: The hardest hitcommunities have attracted the most focused study.Forty-three counties in the state were declared naturaldisaster areas. Some were obviously more affected thanothers. Those areas, therefore, were where our workgroups targeted much of their efforts and focused mostof their recommendations.Everything is connected. An emergency like HurricaneKatrina peels away delusions of independence. We’re reminded, yet again,that “no man is an island.” We all rely on one another. Every business, nonprofitentity, and government agency is linked in crucial ways. Our industrial recovery isdependent on access to workers. Workers depend on available housing and a supportiveinfrastructure of schools and health and social services. Schools and servicesdepend on the physical infrastructure of roads, bridges, and communications. Theinfrastructure is dependent upon the ability of local governments to not only addressthe needs within their jurisdictional borders but to also understand howthose needs connect with regional and state networks. And on and on it goes. Forthat reason, you will see recommendations here for broader, more connected, andmore comprehensive approaches to problem-solving. It’s time for collaborationand, where practical, consolidation of services.Local governments have the most opportunity and the highest accountability.What you read in these committee reports are recommendations – as informed

THE GOVERNOR’S COMMISSION REPORT | vas we can make them, but recommendations nonetheless. Some are appeals for aidbeyond Mississippi’s borders, but most are proposals to cities, towns, and counties,who have the most to say about how citizens live, work, and play in their communities.They write the zoning and building codes. They choose whether or not to joinregional transportation, infrastructure, or economic development initiatives. If weare to behave differently in the aftermath of Katrina than we did after Camille, thecommunities most at risk will have to lead the change.I feel a personal obligation to one overarching concern at the top of our state’splanning agenda: We must recognize where we live.At one of our meetings, a coastal engineer pointed to the Mississippi Gulf Coaston one of his maps and called it “a storm surge magnet.” As we prepared thesereports, the experts who annually predict the frequency and intensity of hurricaneseasons issued their first projections for 2006 and warned of the potential for moredangerous storms than in 2005. We will see another major hurricane, perhaps notthis year, nor next year, nor the year after that – butalmost certainly within our lifetimes. Will we be prepared?Partly because of the sense of urgency the Commissionbrought to planning efforts, the Federal EmergencyManagement Agency accelerated production ofdetailed flood zone advisory maps for the Coast. Thenew flood zones won’t become official until after morestudy and a public process that could take a year or longer.There will be much wrangling over interpretationsof the maps as they apply to specific parcels and neighborhoods.The politics of zoning and building codeswill be fractious. However, coastal engineers warn usthat to ignore these interim maps – these guides tochanges in the ways we build and live on the Coast – isto risk lives, property, and the very existence of wholecommunities in the decades to come.I can’t imagine how any prudent property owner or any responsible communitycan fail to take this discussion seriously. Home builders and developers must planwith the new flood zones in mind, and communities must pass codes that acknowledgereality.I can understand how someone would look at all the proposals that follow andbe overwhelmed by what’s required, but that would misread both our intent andour recommendations’ underlying message. Our recommendations can be modifiedwhere needed, but we don’t have to lower our expectations. We have theresources we need within our grasp – or within reach, with help from allies in thenonprofit, government, and private sectors. The question is: Do we have the will?We have models of high performance to emulate. From the moment Katrinacame ashore, we witnessed the power of churches and other charitable organizationsthat immediately rushed into disaster areas with aid. Other nonprofits, includingthe foundations that have funded the Commission’s work, are behind much ofthe research that will lead to the next steps in our rebuilding.“After listening to all those voicesand embracing their deepest concerns,we would find it unconscionableif their hopes are unrealizedbecause their leaders failed tomake the hard choices and committhe full resources necessary to movefrom great ideas to meaningfulaction.”

vi | INTRODUCTIONGovernor Barbour immediately committedthe state’s support, and shortlybefore Christmas, he and Senators Cochranand Lott led an effort in Washingtonto secure billions of dollars throughomnibus federal legislation targetingthe Katrina-stricken Gulf region. It willtake years for us to understand fully thevalue of the work these leaders – andthe entire Mississippi congressional delegation– accomplished in the closingweeks of 2005. We can say with confidence,though, that this funding willgo a long way toward helping communitiesimplement key Commission recommendations.Thanks to this aid package, homeownerswho qualify will have themoney to rebuild. Schools will havemoney for operations during a periodof lower ad valorem taxes. Infrastructureneeds, including roads and sewer systemscan be addressed. Naval shipbuildingwill be escalated. Agriculture andforestry are getting help. Training fundswill become available. Military housingand reconstruction, plus environmentalrestoration and rural redevelopment arelikely to get help.The tax and loan incentives includedin the recent legislation will encouragefirms to rebuild and to migrate here.Housing developers and companies alreadyhave begun sharing their intentions.Some are committing to projects.Many more will step forward with ideasand proposals to drive our economicrecovery and to increase our citizens’chances for better lives.So, where do we go fromhere?Early in 2006, this Commission’swork transfers to a new entity workingout of the Governor’s Office withstaff in coastal counties. That group willcoordinate government assistance at alllevels and assemble a package of advisoryhelp for local jurisdictions. It’s leftto them to pass and enforce ordinancesthat implement good policy and applymost directly to their citizens.We must recognize, however, thatsame approach didn’t work 36 yearsago. After Camille, local elected officials,concerned about imposing anything onconstituents already beaten down bythe hurricane, ignored many of the recommendationsof a Governor’s Council.What makes us think it will workthis time?Because it has to. We have exhaustedthe alternatives.Federal taxpayers’ billions in aid,though generous and coming after exhaustivework by some of the most politicallyinfluential officials in our state’shistory, cannot make us whole in 2006.Is anyone so naive as to believe that anotherset of Mississippi leaders can go toanother Congress and expect the exponentiallylarger sums required to deliverus from the consequences of anotherbig hurricane?We have learned through this ordealthat we have friends everywhere. Buttheir empathy and even their aid arenot enough. Ultimately, we must rescueourselves.Federal and state officials have rolesto play, certainly. At the state level, thegovernor must use first his bully pulpit,then the discretionary dollars from therecent federal appropriation to prod localofficials into action. It’s this simple:Communities that make the best decisionsshould reap the financial rewards.It’s time, as well, for results-focuseddiscussions with federal emergencymanagement officials. No one, includingthose in Washington, can be happywith the performance of some federalagencies during and after Katrina. Wehave to do better. The next hurricaneseason will soon be upon us.No one, however, is going to comefrom Washington or Jackson to lift theburden of choices from local communitiesand transport them magically intothe future. For local decision-makingto work, local citizens have to support– have to demand – tough choices frommayors, aldermen, and county supervisors.This report is nothing if not a callto arms for exactly that kind of responsiblecitizenship.That’s the big idea implicit in thisreport. Local citizens and local leadersmust own the challenge of shaping alandscape and a legacy. They must committo achieving the results on whichthey’ll be judged – and in which theycan take pride – not only in the nextmonths but in generations to come.The whole country is watching.

THE GOVERNOR’S COMMISSION REPORT | 1FROM CAMILLETO KATRINALESSONS LEARNED. AGAIN.The hurricane, fueled bynear-perfect conditions fora monster storm, crashedashore in August. It pusheda record storm surge ontothe Mississippi Coast, erasing in a matterof hours lives, homes, and assets thatwould take years to replace.No one had ever seen anything like it,nor did they expect to see its like again.It was the 100-year storm. The awfulaberration.After the hurricane came the analyses.A special commission was appointedby the governor. Experts were consulted,and wise folks agreed on key points.Chief among them: Coastal communitiesrisked too much by ignoring the realitiesof life in a hurricane zone. Theymust plan for safer patterns of growth.They must toughen zoning and buildingcodes.It would also be prudent, said the experts,to leverage the recovery for futureeconomic development. Why not turnHighway 90 back into the scenic beachboulevard it once was by creating east-Courtesy Biloxi Public Library

2 | CAMILLE COMPARISONwest transportation alternatives fartherinland? Tourism, an economic driverbefore the hurricane, promised to bean even more powerful force in comingyears. Wouldn’t a scenic boulevardheighten the appeal of a Coast with auniquely Mississippi sense of place?While they were at it, Coastal governments,whose population growthand service demands were outpacingrevenues, should think about consolidatingefforts – especially with regardto water management, sewer systems,and solid waste disposal. There were attractiveopportunities for getting morebang for the infrastructure buck, too,by regionalizing transportation planning.All good ideas backed by convincingevidence. You can read the details inthe pages to follow, or you could turnback to the reports of the Governor’sEmergency Council in the wake ofHurricane Camille 36 years ago. Thethemes are eerily similar.As all Mississippians know, Camillewas the benchmark disaster until Katrinacame along. For those who survivedit, Camille was a life-changingexperience. There were “lessonslearned,” volumes of them, recordedin the state’s archives and in the librariesof disaster preparedness throughoutthe country. But if they were learned,the lessons were not exactly taken toheart.In August of 1969, Camille was atightly wound Category 5 hurricanethat left 130 dead and destroyed 3,800homes in the six southernmost Mississippicounties where its effects wereconcentrated. Overall, Camille’s damagetotaled just under $9 billion incurrent dollars.In August 2005, Katrina came ashoreas a slightly less intense but far largerFor those who survived it,Camille was a life-changingexperience. There were “lessonslearned,” volumes of them,recorded in the state’s archivesand in the libraries of disasterpreparedness throughout thecountry. But if they werelearned, the lessons weren’texactly taken to heart.storm than Camille. Its storm surgewas undiminished from its Category5 levels before landfall. When Katrinawas finished, Mississippi had more than230 dead and 65,000 homes wipedfrom the map. The federal bill for recoveryin Louisiana, Mississippi, andAlabama is inching toward $100 billion.The costs to state and local governments,to property owners, and toprivate businesses may be incalculable.If we had really learned the lessonsof Camille and applied them in theyears between 1969 and 2005, couldwe have saved lives and dollars? Withoutdoubt.The money we were reluctant toinvest in storm-worthy infrastructureand storm-ready procedures we willpay many times over in restorationcosts. The rules we put off enacting andenforcing would have kept many outof harm’s way and would have madebuildings more resilient to high windsand high water. The hard choices weducked in 1970 await us in 2006, onlywith more zeroes on the price tags.So, here we are again in the aftermathof a nightmare. We have anotherhard-working commission, another setof recommendations, another opportunity.Will we get it right this time?

THE GOVERNOR’S COMMISSION REPORT | 3REACHING OUTExperts and industry leadersin infrastructure, economicdevelopment, andservices are critical tothe long-term recoveryof South Mississippi. The work of theCommission would have failed, however,had it not listened to the best assetof Mississippi — her people. Through aseries of open, town hall meetings across33 counties, the Commission soughtfrom citizens their ideas and opinionson the long-term recovery and renewalof South Mississippi. Thousands ofMississippians attended over 50 publicforums and shared their vision of whathome would look like five, 10 and 20years from now. Over 800 more voicedPhoto: Sun-Herald

4 | REACHING OUT“We all recognize thatKatrina brought the kindof change we would neverseek, and it is clear that weare determined that it willonly strengthen our communityand our character.”— Chuck Benvenutti,Hancock County Chairman“Stone County is poisedto bring projects to thetable in a hurry.”— Jill Holleman,Stone County Chairman“It is clear that developinga long-range plan andkeeping the vision in focusis a daunting task, butconsider this — we’vesurvived the most devastatinghurricane in our history,and we are a strongercommunity as a result. It isessential that we cometogether on the overallvision for our future with aplan that embraces andenhances those qualitiesthat have made HarrisonCounty and its municipalitiesinto such a specialplace.”— Anthony Topazi,Harrison County Chairman.suggestions and comments via email,telephone, and an online Internetcommunity forum established by theCommission. The Commission’s websitenot only reached out to Englishspeakingcitizens but was translatedinto Spanish and Vietnamese, the nativetongues of many Coast residents. TheCommission listened to these opinionsand considered them carefully as the issueswere debated in committees andthe final recommendations were madein this report. The process of publicparticipation helps to ensure that thisbody of work is reflective of the generalwill of the people it seeks to serve.The Commission divided the areaaffected by Katrina into eight countycommittees — one committee foreach of the six southernmost countiesof Hancock, Harrison, Jackson, PearlRiver, Stone and George; a SoutheastMississippi Committee, and a SouthwestMississippi Committee. TheSoutheast Mississippi Committee wascomprised of Rankin, Scott, Newton,Lauderdale, Simpson, Smith, Jasper,Clarke, Covington, Jones, Wayne, Lamar,Forrest, Perry, and Greene Counties.The Southwest Mississippi Committeeconsisted of Hinds, Copiah,Adams, Franklin, Lincoln, Lawrence,Jefferson Davis, Wilkinson, Amite, Pike,Walthall, and Marion Counties. Eachcommittee held multiple town hallmeetings across their geographic area.Most meetings began with a shortvideo presentation that illustrated thedevastation wrought by Katrina andthe hope that has followed. Next, thecounty committee chairman or otherCommission member discussed thework of the Commission and the proposalsthat had been developed. Theaudience then was invited to voice itsconcerns about rebuilding, point outspecific problems in their area, critiqueCommission proposals, and giveideas on recovery. Numerous city andcounty officials attended, participatingin the discussion and listening to theconcerns of their constituents. In additionto general town hall meetings todiscuss a wide range of future plans, theCommission also held public meetingsin each of the 11 coastal cities to presentand discuss the designs and ideasgenerated during the Mississippi RenewalForum.The nature and extent of Katrina’s effectsvary over South Mississippi. Whilecoastal counties are faced with destroyedinfrastructure and obliterationof their tax base, some inland countiesencounter swells in their population,increased property values, and a heavilyused but limited infrastructure capacity.Below is a summary of the input gatheredfrom the public meetings and theperspectives on problems and opportunitiesfacing South Mississippians.Six Southernmost CountiesThe Commission’s town hall meetingsattracted standing-room-onlycrowds in Hancock, Harrison, Jackson,George, Stone and Pearl River Counties,and residents voiced their opinionson how their neighborhoods, streets,downtowns and communities shouldbe rebuilt and renewed.The residents of the most heavilydamaged areas faced the dauntingchallenge of engaging in the long-termvision of their community while dealingwith the current, basic needs ofshelter, food, clothing, employment,childcare, and application for assistance.The Commission recognized the difficultproposition of asking citizens onthe Coast to think about their communitiesin 2015 when so many per-

THE GOVERNOR’S COMMISSION REPORT | 5Photo: Sun-Heraldsonal uncertainties exist. True to theirresilient spirits, however, participantsprogressed beyond their daily strugglesand focused on opportunities for thefuture.Two central desires emerged duringthis process: preservation of communityuniqueness and charm whilerebuilding stronger and better, andthe adoption of improved zoningand building codes. These themes areclosely intertwined and critical for thearea to recover fully.Some ideas and concerns areunique to certain counties.Hancock Countywas ground zero,suffering the most severe devastationfrom Katrina, and will require comprehensiverebuilding. Opportunitiesfor regional consolidation of publicservices, quality affordable housing,a county-wide transportation, anddevelopment of Beach Drive into ascenic byway were all topics raised byresidents of Hancock County and havebeen addressed in this report.Harrison Countyresidents demandedthat land-use planning bemore sensitive to the heritage and senseof place of the communities while accommodatingcounty developmentand economic progress. The proposalsto relocate the CSX railroad lineand convert Highway 90 into a scenicboulevard were met with overwhelmingsupport. Participants also favoredplans to study the efficiencies that maybe realized from consolidation of publicservices, such as water, sewer, police,

6 | REACHING OUT“While the town hall meetingsrevealed a great sense of concernand frustration as people struggledto find solutions to some of the basicproblems associated with recovery,the meetings reflected the overall willand commitment of the communitiesto focus on recovery, rebuilding, andrenewal.”— Jerry St. Pé, Jackson County Chairmanfire, emergency medical services, andschools.Town hall meetings in JacksonCounty, with one attended by over 500people, illustrated the concern with theFEMA Flood Recovery Maps, specificallyits impact on the cost of rebuilding,financing, and flood insurance. Delaysin the permitting process causedfrustration for those ready to rebuildand restore their homes and businesses.Virtually all homes on the beachfrontin Jackson County were destroyed, andaffordable housing for poor and middleclass residents is an urgent need,particularly as temporary housing beginsthe transition to permanent housing.Citizens also expressed concernfor the reconstruction of the Highway90 bridge connecting Ocean Springsto Biloxi, and most Ocean Springsresidents favored a smaller, four-lanebridge. Designs created in the MississippiRenewal Forum were receivedwith high praise and support.Residents in Pearl River Countycommented that they had never seensuch a high level of community participationin public meetings in theircounty. Improvement in health care facilitiesemerged as the highest priorityin the county where it is estimated that80 percent of medical care for residentswas performed outside of the county. Anew hospital is needed to fulfill countyhealth care needs and to attract andretain quality health care professionals.Expanding existing infrastructureto meet expanding population was anotherpriority topping the list in PearlRiver County. More short-term problemsassociated with increased populationinclude potential budget shortfallsdue to additional staffing and equipmentrequired by law enforcementagencies and fire departments.Stone Countyis the sixth-fastestgrowing county in the state accordingto 2000 census data and, after Katrina,immediately began working withMDA to create a strategic plan. New

THE GOVERNOR’S COMMISSION REPORT | 7water and sewer projects there are criticalto future development, and countyleadership is working to consolidateexisting county systems. Residents alsoemphasized the need for additionalschools to match the population explosionseen from Katrina.In GeorgeCounty discussionsabout the future focused on the communities’greatest asset – their scenicbeauty. Residents there believe the importanceof nature in the county’s lifestyleand economy should be a centralfocus in their recovery, and the idea ofbuilding a lake or reservoir emergedas the top recommendation. The newbody of water would provide new recreationalactivities and serve the waterneeds of George and Jackson counties.Development of the Pascagoula RiverBasin for eco-tourism activities likebird watching, hunting, fishing, boatingand water skiing also drew greatattention.Citizens and local officials also discussedthe possibility of acquiring apublic golf course and developing anursery welcome center and experimentalstation.“I hope that local public officials willlook at the report and understand theareas of concerns of Pearl RiverCounty residents. ... I am proud ofGovernor Barbour for encouraging usto look at this disaster as anopportunity to improve upon thepast.”Inland Counties— Suzy McDonald, Pearl River County ChairmanAlthough the Mississippi Gulf Coastsustained catastrophic damage fromHurricane Katrina, inland counties inMississippi also felt its devastating effects.In these counties, homes, businessesand timber were destroyed; landwas damaged; roads were littered withdebris; electricity was out for extendedperiods; food, water, ice, and fuelwere in short supply; and communicationwas often available only throughword of mouth. In contrast to theghost towns left on the Coast, inlandcommunities also were flooded withcoastal residents seeking shelter andaid. The Governor’s Commission heldforums in places far from Katrina’slandfall. Residents in Hattiesburg, Laurel,Taylorsville, Waynesboro, Meridian,McComb, Brookhaven, Natchez, and

8 | COUNTY REPORTS“We must be proactivein ensuringthat the goals andrecommendationsof the citizens arecarried forwardinto action.”— Joe Sanderson,Southeast County Chairman“George County isthe Nursery Capitolof Mississippi, withapproximately 50wholesale nurseries,and such a centermay promote andgrow thehorticulture industryin Mississippi.”— Mayor Dayton Whites,George County Chairman“Housing hasbecome extremelylimited, to virtuallynon-existent, asdisplaced familiesmove to Natchezand SouthwestMississippi”— Mayor Phillip West,Southwest County ChairmanPrentiss all had the opportunity tomake their voices heard in town hallmeetings.The most pressing issue in southeastand southwest Mississippi is the needfor a newly revised emergency responseplan for each county. Fire departments,law enforcement, other emergencyresponse agencies, healthcare providers,churches, and volunteer organizations,among others, should collaboratein creating a better plan for safety andresponse to emergencies. Local officialsshould receive training on how to implementthe plan, and leaders should bedesignated well in advance of an emergency.As more fully discussed in thechapter on public services, residents ininland Mississippi identified the criticalneed for trustworthy, effective communicationsduring and immediately aftera disaster. They also said that each communityshould designate an emergencylocation long before an emergencyoccurs as centers for citizens to gatherand receive aid and information.Distribution systems must be put inplace to ensure that supplies are deliveredto these emergency centers ineach county. One citizen described hercounty as “the forgotten corner of thestate.” “Forgotten” because her countywas passed up by the relief trucks headedto the Coast. Consequently, coastalresidents who had fled to these inlandcounties and the residents of thesecounties were left in need of food, waterand ice.Generators for individuals and, particularly,for the critical facilities likehospitals and disaster response centersmust be more available, and fuel resourcesto run the generators must becoordinated. Folks in Wayne Countysuggested that critical equipment suchas the “jaws of life” and utility maintenanceequipment also be readily accessibleduring and after an emergency.Community centers also must be replaced.In Moselle, the gym that serveda variety of community functions wascompletely destroyed by the hurricane.In discussing plans to rebuild and expandthe facility, one citizen recommendedthat the community offerEnglish as a second language courseat these locations to assist the growingHispanic population in South Mississippi.

INFRASTRUCTUREThe four subcommittee reports in this Infrastructure Committee section– Land Use, Intermodal Transportation, Affordable Housing, andPublic Services – target the most obvious effects of the hurricane.They also point to some of the most hopeful aspects of recovery.Katrina ripped through the physical landscape, destroying structuresand roads and disrupting systems that support mobility and communications. As werebuild, we have the chance to connect in smarter, safer, and more appealing ways.Just as important, we can use infrastructure redevelopment to shape a post-Katrinafuture that improves the quality of life not only for the most affluent but alsofor working families and for young people just starting out. This is the right thingto do. But there are also powerful economic incentives. A vibrant, adaptable economydepends on workers at all income levels having access to affordable housing.The kind of community likely to attract investment is one that signals its pride inthe quality of its public spaces and in the reliability of its public services.To realize these goals, we must:■ Embrace comprehensive planning principles that define how we want togrow. Let’s be explicit about what we love about the Coast, what we wantto preserve, what we want to avoid. Then, let’s frame ordinances that guideredevelopment – and future development – with those goals in mind. Thedesign specialists who participated in the Commission-sponsored MississippiRenewal Forum showed us ways to do that, and several communitieson the Coast have already begun enacting codes and adapting plans thatmove in that direction.■ Think regionally. The hurricane exposed the folly of imagining our communitiesas separate, independent entities. Regional connectivity, fromtransportation policy to emergency communications systems, should becomethe rule. Already, some cities and counties are beginning conversationsabout combining efforts.

THE GOVERNOR’S COMMISSION REPORT | 11

12 | LAND USE■ City land use plans should be basedon the form of human communities,not on separation of uses.■ Town centers, neighborhoods, andthe streets that connect them shouldencourage walking and should provideessential services (food stores,pharmacies, entertainment, schools,and public services) within a fiveminutewalking distance.■ Pedestrian pathways throughout eachcity’s residential areas should connectneighborhood parks and playgrounds.■ Federal, state and local tax incentives,as well as ad valorem tax structures,should support planned communitydevelopment.■ Land use planning and related transportationplanning should createplaces with a sense of history and afuture focused on human life, notvehicular traffic; plans should reducedependency on automobiles whileproviding more efficient public transitroutes that connect residents withjobs. 1These principles are at the heart ofa planning approach called new urbanism,which advocates time-tested patternsof development that focus on theway humans live, play, and work ratherthan on patterns that make automobiletravel and parking the top priorities.The Congress for the New Urbanism,the nonprofit umbrella organizationthat promotes new urbanist principles,organized the group of 100-plus internationalarchitects, planners, engineers,and other specialists who joined witha like number of Mississippi colleaguesfor the Governor’s Commission-sponsoredMississippi Renewal Forum. Newurbanism is one approach that communitiesmay look to in rebuilding andcontributed to some, but not all, of therecommendations set forth in this report.Make no mistake; the Commisonis not trying to encourage the rebuildingof “Santa Barbara” in Pascagoulaas one critic has suggested – only thatMississippi has the opportunity to buildback better. Why not take it?Led by Andrés Duany, a prominentleader of the new urbanism, a movementthat promotes the design of walkable, diverseneighborhoods as a solution to fightsuburban sprawl, the Mississippi RenewalForum was held for a week in October atthe Isle of Capri Hotel in Biloxi, Miss. Approximately200 architects, planners, engineersand other specialists convergedfor a week to design plans, codes andrecommendations that could be used toassist rebuilding efforts on the Gulf Coast.Photo: Eliot Allen.

THE GOVERNOR’S COMMISSION REPORT | 13■ Preservation of South Mississippicharacter. Rebuilding efforts mustencourage the preservation of certainqualities of the region, such as, the diversityand the friendly nature of itspeople; pedestrian-friendly neighborhoods;public access to the water andthe beach; the waterfront as a place tolive, work and play; the architecturalcharm of historic buildings and artdistricts; the urban forests created bythe majestic live oaks; and the naturalbeauty of the wetlands and marshes.■ Pre-storm problems. Rebuilding effortsshould also address issues criticalto an improved quality of life for allSouth Mississippi residents, including:housing and mobility needs of allresidents; improved building standardsto protect structures in the event offuture natural disasters; land use andzoning laws and regulations modifiedto improve the human scale and thewalkability of neighborhoods, downtownsand commercial areas; mixeduseneighborhoods and downtownsthat meld commercial and residentialuses; and architectural standards toprotect the pre-hurricane character ofcoastal communities and foster newdevelopment sensitive to that character.■ Problems created by the need to rebuild.Some issues rose to the surfacebecause of the hurricane.Amongthem: Federal Emergency ManagementAgency (FEMA) flood zonemodifications and the changing requirementsand availability of floodinsurance; access to affordable, easilyfinanced housing; restoration of historicneighborhoods and downtowns;incentives for investment; replantinglive oaks and other trees to encourageurban forests; re-establishment andprotection of wildlife; and evaluationof the efficiencies of regional planningand regional utility systems forwater and sewer.The Commission proposes the followingpriorities that should be supportedby resources available from theCommission or a state office continuingthe Commission’s efforts and byextended public efforts that will rebuildthe Mississippi Gulf Coast:■ Mixed use. Each county and cityshould adopt amendments to land useordinances for mixed-use alternativeswhich promote walkability. Walkabilitycan be defined as pedestrian accessto basic services, recreation, and retailwithin a five-minute walking distanceof their homes. Mixed-use alternativesinclude: (a) business and residentialin downtown areas; (b) mixed use inneighborhoods using “communitybasedretail,” which incorporates onlythose commercial amenities neededand approved by residents; and (c)neighborhood residential areas withoutmixed uses but connected to otherareas by a sidewalk or pedestrianpath system.■ Safe, affordable housing. Redevelopmentefforts should provide safe,affordable housing that can be easilyfinanced for the Coast residents.Residential and mixed-use developmentsshould encourage a specifiedpercentage of affordable housing thatis compliant with building standards.■ Environmental sensitivity. All counties,cities and regional authoritiesshould make land use and economicdevelopment decisions that accommodateand are sensitive to the protectionof existing natural areas includingwatersheds, wetlands, urbanforests, and natural habitats.■ Regional shared services. On a re-

14 | LAND USEgional level, coastal cities and countiesshould consider the feasibility ofshared water and sewer systems whilemaintaining a sense of communityidentity. (See Public Services chapter.)■ Waterfronts and waterways. Economicgrowth and development shouldmatch citizen expectations for protectionof South Mississippi’s naturalresources. Plans should take advantageof the waterfront as the Gulf Coast’sunique aesthetic and economic asset,balancing public access with potentialdevelopments which are consistentwith community identity.Public access to coastal watersshould be encouraged through waterfrontparks and networks of boardwalksand piers that connect retailand commercial areas with publicspaces on the waterfront. 2 Marinasshould provide dockage and accessto commercial and recreational boatsof diverse sizes and price ranges, fromworking shrimp boats to small pleasurecraft and large, inter-coastal travelingyachts that enhance the tourismindustry.Each coastal county and city shouldpromote working waterfronts thatcoordinate water-related recreationaland commercial uses and that specificallycoordinate wharves and docksfor the commercial shrimp and oysterfleet with an inland seafood park orparks. Land use and economic developmentdecisions should preserve andpromote public use and enjoyment ofthe beach, water front parks, the MississippiSound and inland waterways.Port facilities should institute emergencyplanning measures to minimizerisk of damage and debris to themainland caused by shipping containersthat are not secure.■ Transportation. Wise land use decisionsare closely aligned with appropriatetransportation planning.The quality of life and sustainabilityof cities and neighborhoods dependsin large part upon changingthe post-World War II conventionalwisdom for design of streets, major

THE GOVERNOR’S COMMISSION REPORT | 15thoroughfares and federal highwayconnectors. Hundreds and hundredsof citizens have said that Highway 90should not become six-lanes. Ratherthis scenic highway should become aslower-moving, pedestrian-friendlyboulevard that allows safe pedestriancrossing to the beach. Railroad trafficshould be moved north of thebays, allowing the vacant CSX rightof-wayto be redeveloped as a treelinedavenue with light rail down thecenter connecting the 11 communitiesof the Coast with landscapingand mixed uses bordering it in themanner of St. Charles Avenue in pre-Katrina New Orleans.It is impossible and irrational to planland use without planning transportationuses and methods. There are noissues more important to smart landuse and livability of coastal towns thanmoving the railroad and reversing thecustomary expansion of interstate-standardhighways that are detrimental toneighborhoods and downtowns. Everyregional agency and every countyand city should evaluate transportationplanning in conjunction with land useplanning. Future development shouldpromote interconnectivity and providenon-automotive public transportationalternatives in the form of trolleys,light rail, and sidewalks that connect allneighborhoods and provide access toretail.Codes and StandardsThe Mississippi Renewal Forumproduced several guides designed forMississippi’s recovery, rebuilding, andrenewal effort. In addition to the cityspecificteam reports, these productsincluded a form of the SmartCode tai-What’s a “Charrette”?The Misssippi Renewal Forum in Biloxi in was one of the largest charrettes ever. In six days, 200designers and other specialists met with community leaders, drew up ideas, debated the results,revised them based on that discussion, then offered fi nal versions in public presentations that captureda consensus and delivered actionable plans.The word “charette” comes from the French for “little cart,” which was the means of delivering artstudents’ work to their professors at the Ecole de Beaux Arts in Paris in the 19th century. Like moststudents, the artists often pressed deadlines. They ran alongside the cart fi nishing their work as itmoved through the streets.A charrette is more than a brainstorming session. Ideally, it brings stakeholders into the same roomto hash out priorities and agree on paths of implementation on a deadline. The compressed timeframe forces a sense of urgency. What emerges are not only ideas but tools to achieve results.Hundreds of new towns, neighborhoods, and urban infi ll projects have grown from new urbanistcharrettes. As you will read in these pages, the method is also recommended for consensus-based,decision-making in non-design matters. Commission committees are suggesting charrettes for retail,tourism development, and transportation strategies.Source: www.charretteinstitute.com.

16 | LAND USElored for South Mississippi; A PatternBook for Gulf Coast Neighborhoods; andrecommendations for revised buildingcodes for sustainable construction inhurricane-prone areas. The core valuesdiscussed above are incorporated intothese resources, and the Commissionrecommends that local communitiesevaluate and adopt them.The SmartCodeThe SmartCode is a unified land developmentcode, which is a combinationof zoning code, subdivision regulation,and architectural form code tiedinto one document for simplified andefficient administration. It governs allpublic and private land developmentto ensure that the pattern of streetsand buildings shapes the community’sdesired character. For best results, theSmartCode should replace the existingland use zoning code and subdivisionregulations. This will enable new developmentthat is diverse, walkable, andeconomically sustainable.The objective is to provide the livingareas and the basic necessities for everyday life within a five-minute walkingradius. These nodes become urbancenters. This concept promotes denserdevelopment, a more efficient use ofvaluable land, and sensitivity to urbanneighborhood character. 3The Commission recommends thatthe state enact legislation authorizingand encouraging the adoption of theSmartCode by communities. The legislationwould not compel any city orcounty to adopt the SmartCode, but itwould provide the framework for adoptionof the SmartCode, or certain partsof it, as a new comprehensive code oras an alternative code to existing zoning.Although additional legislation maynot be necessary for cities and countiesto adopt the SmartCode, a new statutewould encourage and ratify a community’schoice to move away from traditionalzoning and adopt the SmartCode.The Commission recognizes that this,like all recommendations for legislation,is the perogative of the governor to recommendor not if he believes there is abetter way of accomplishing the samegoals.The Commission further recommendsthat each city and county adoptthe SmartCode as a model code fornew zoning. The Smart Code shouldbe tailored so it is consistent with thefloodplain management requirementsof the National Flood Insurance Program(NFIP). The Commission anticipatesa possible population explosion inrural areas in the southern-most countiesof Mississippi. This potential surgein residents will require appropriateland use planning for future developmentand infrastructure to support it.

THE GOVERNOR’S COMMISSION REPORT | 17The SmartCode should be consideredas a guiding document for these areasand should be evaluated and revised foreach county’s needs. Local governmentsare encouraged to seek the advice andassistance of professional land plannersto create comprehensive land use planswhere ones do not exist, to incorporatethe SmartCode into existing comprehensiveland use plans, and to customizethe code for each community’s needs.In the event a town does not prioritizewalkable neighborhoods overconventional suburban subdivisions, theCommission strongly recommends thatlocal governments adopt the Smart-Code as an optional overlay so propertyowners and developers may choose thatapproach for themselves. The Smart-Code works in tandem with buildingconstruction codes that address structuraland safety issues. For areas desiringstronger architectural design and detailstandards, a Pattern Book, as discussedbelow, can be adopted to supplementthe SmartCode.The Commission further recommendsthat if implemented as an optionalcode, incentives be provided bylocal governments to encourage developersto use the SmartCode as a modelfor mixed-use development. These incentivesare as follows:(1) After the SmartCode is adopted andapproved by a local government,development proposals based uponthe SmartCode receive automaticzoning approval and given priorityin the permitting and plan reviewprocess, avoiding the expensive andtime-consuming public hearing andcomment process typically associatedwith overlay district applications.In effect, the public hearingand comment takes place at the timeof adoption of the SmartCode, andthereafter, developers who utilizethe SmartCode model go straight toapplication for a building permit.(2) As an incentive to developers, municipalitiesand counties can offer toconstruct and maintain thoroughfareswhere the development proposalprovides interconnectivity tothe community and transportationnodes.The Pattern BookandArchitectural GuidelinesOne of the most exciting productsof the Mississippi Renewal Forum is APattern Book for Gulf Coast Neighborhoods,which captures the architectural heritageand diversity across the Mississippi GulfCoast and suggests guidelines for deliveringin new construction the traditionalcharacter of the region’s houses, streets,neighborhoods, and towns. The Commissionrecommends that local governmentsadopt the Gulf Coast Pattern Book

18 | LAND USEThe qualityof life andsustainabilityof cities andneighborhoodsdepends inlarge part uponchanging thepost-World WarII conventionalwisdom fordesign ofstreets, majorthoroughfares,and federalhighwayconnectors.as a compliment to its building code soas to provide local officials, developers,and homeowners with a tool to buildor renovate residences and commercialbuildings in a manner that is sensitiveto the architectural heritage of the GulfCoast. Adoption of the Pattern Bookmayassist communities and developers bystreamlining the approval process.Building Codes for SustainableConstructionLocal governments in South Mississippi,including counties, must adoptmore stringent building codes and requirementsin order to protect its citizensand to reduce the extent of destructionfrom a future hurricane or othernatural disaster. The FEMA’s NFIP canbe a guidepost for local government’sefforts. This program was created afterflood control projects such as dams,levees ,and floodwalls failed to reduceflood losses because people continuedto build in floodplain areas. Floodplainmanagement has now evolvedfrom heavy reliance on flood control,or structural measures, to one using acombination of many tools. As a resultof this evolution, United States floodplainpolicies are now multi-purposeand result in a mix of solutions to suitmany situations. Non-structural floodprotection measures include:■ Regulating floodplain use by usingzoning codes to steer developmentaway from hazardous areas ornatural areas deserving preservation,establishing rules for developing subdivisions,and rigorously followingbuilding, health and sanitary codes.■ Establishing development and redevelopmentpolicies on the design andlocation of public services, utilities,and critical facilities.■ Acquiring land in a floodplain in orderto preserve open space and permanentlyrelocate buildings.■ Elevating or flood-proofing newbuildings and retrofitting existingones.■ Preparing people and property forflooding through forecasting, warningsystems, and emergency plans.■ Restoring and preserving the naturalresources and functions of floodplains.4The creation of the NFIP in 1968also was a landmark step in this evolution.The NFIP:■ Established an insurance program asan alternative to disaster relief.■ Distributed responsibility for floodplainmanagement to all levels of governmentand the private sector.■ Set a national standard for regulatingnew development in floodplains.■ Began a comprehensive floodplainmapping program. 5On a local level, availability of floodinsurance and participation in the NFIPis based upon an agreement betweenlocal communities and the federal government.The agreement provides thatif a community adopts and enforces afloodplain management ordinance toreduce future flood risks to new constructionin Special Flood Hazard Areas(SFHA), the federal government willmake flood insurance available withinthe community as a financial protectionagainst flood losses. 6 Development maytake place within the SFHA, providedthat it complies with local floodplainmanagement ordinances, which mustmeet the minimum federal requirements.Flood insurance is required forinsurable structures within high-riskareas to protect federal financial investmentsand assistance used for acquisitionand/or construction purposes

THE GOVERNOR’S COMMISSION REPORT | 19within communities participating in theNFIP. 7 Non-federal lending institutionslikely will also follow these requirementsto protect their investments fromthe risk of flood.In certain places along the GulfCoast, the storm surge from HurricaneKatrina reached several miles inland.FEMA, therefore, had to reevaluate theSFHA. This process normally wouldhave taken several months to a year;however, in an effort to aid the rebuildingeffort, FEMA released preliminaryadvisory maps on November 18. Thesemaps show revised base flood elevationsalong the Mississippi Gulf Coast. 8The revised maps are only advisoryand preliminary. The current Flood InsuranceRate Maps (FIRMs) that werein place at the time of the hurricanewill remain the standard until the advisorymaps are adopted into law in 12to 18 months. During this period, theadvisory maps will be subject to evaluationand public comment.FEMA and other federal agencieshave adopted the advisory maps forpurposes of their programs, includingfinancial assistance. Local communitieshave the option of adopting the advisorymaps now or waiting until the advisorymaps are formally passed into law andadopted in order to continue the NFIPin their communities. Adoption of themaps by local communities will necessarilyinvolve revisions to floodplainmanagement ordinances and buildingrequirements for the revised flood areas.Local governments can adopt theadvisory FEMA maps immediately. Additionally,if local governments desire toremain in compliance with the floodinsurance program, they must adopt thenew FIRMs, after public comment, unlessthe advisory maps are a higher standardthan the FIRMs.Because FEMA and other federalprograms have adopted the advisorymaps, it is advisable for new constructionto comply with FEMA buildingrequirements in order to be eligible forflood insurance in the future. Dependingupon the elevation of the proposedbuilding site and its location in theflood zone, new construction may berequired to be elevated.If new construction will be locatedin a velocity zone (V-zone) or an areasubject to additional hazards resultingfrom storm-induced waves, additionalbuilding requirements may be imposed.Buildings that were only partially damagedas a result of Hurricane Katrinamay be restored under the currentFEMA and community requirements.The Commission recommends thatlocal governments immediately adoptthe revised advisory flood maps andbegin assessment and revision of theirflood zone management ordinances

20 | LAND USEand building requirements. Regardlessof when these measures are taken,federal lending institutions most likelywill not underwrite new constructionunless it is in compliance with the newflood zone designations and federal requirements.Likewise, the Commissionbelieves that private lending institutionswill follow suit. The adoption ofthe new ordinances and building codesshould proceed simultaneously witheach local government’s evaluation ofthe SmartCode and Pattern Book. Theprompt adoption of these requirementsand codes will aid the rebuilding effortand will ensure that future generationsare sufficiently protected from anotherKatrina.The Commission further recommendsthat the state of Mississippi adoptthe latest versions of the InternationalBuilding Code (IBC) and InternationalResidential Code (IRC), with appendices,as a model code. Following statewideadoption, each county and cityshould likewise adopt and enforce theIBC and IRC. The adoption of theIBC and IRC would be a basic codeand allow for additional code provisionsconsistent with the SmartCode and thePattern Book. Counties and cities shouldevaluate the consequences and benefitsof such codes with regard to flood andproperty insurance, property values, andother land use issues peculiar to thatcommunity.Local governments ultimately will beresponsible for implementing proposalsthat came from the Mississippi RenewalForum. It will be their responsibilityto integrate these resources into existingcomprehensive land use plans andzoning codes. Local governments willrequire financial assistance from federaland state governments to retain technicalexperts to assist with evaluation andTheCommissionrecommendsthat localgovernmentsimmediatelyadopt therevisedadvisoryflood mapsand beginassessmentand revision oftheir flood zonemanagementordinancesand buildingrequirements.approval processes. Additionally, federaland state agencies can provide guidanceon the application of new federaland state guidelines with regard to therebuilding effort. The Commission believesthat these objectives can be accomplishedthrough the MississippiRenaissance Advisory Council as recommendedbelow.Through the Renewal Forum landuse planners, architects, engineers, anddesigners evaluated the 11 cities on theMississippi Gulf Coast and preparedsummary reports for redevelopmentand renewal. The state of Mississippi isprepared to provide similar professionalassistance to the six southern-mostcounties. In order to take advantage ofthese resources and the ideas generatedfrom the Renewal Forum, the cities andcounties of South Mississippi should establisha procedure and a task force ineach city and county to begin the processof evaluation and implementation.An Overlay District for Highway90 and a New East-WestCorridorHighway 90 always has served as theoptimal transportation corridor betweenthe 11 coastal cities. Many residentsprefer the marvelous Gulf viewof this route versus Interstate 10. Beforethe casinos, the view along Highway90 was as diverse as the communitiesthrough which it passed. From Bay St.Louis to Long Beach, the view of thecoast line and the Gulf of Mexico wasunobstructed. Travelers marveled atthe large antebellum residences alongthe north side of the highway and thepeaceful landscape of palms, live oaks,and white sands. Farther to the east inHarrison County, the corridor convertedto a highly commercialized zone ofpawn shops, souvenir shops, and restau-

THE GOVERNOR’S COMMISSION REPORT | 21rants. With the approval of water-basedcasinos, the coastline became furtherlittered with large, glitzy structures thatinterrupted and, even worse, blockedthe view of the Gulf of Mexico.Throughout the Renewal Forumand the work of the Commission,South Mississippi has been referred toas a “clean slate,” providing an enormousopportunity to rebuild in a waythat optimizes the natural beauty of theGulf Coast. Nowhere is this statementmore accurate than with regard to theHighway 90 corridor. Hurricane Katrina’swinds and flood waters destroyedmost, if not all, of the existing structuresalong this corridor. From Waveland toPascagoula, the structural remains canbe described as a fresh canvas awaitinga skilled artist’s creativity. Although thedamage is catastrophic, there is a seminalopportunity to create a beach boulevardthat invites pedestrians to stroll alongthe beach, provides light rail to moveresidents to and from work and home,transports visitors to and from hotelsand retail areas, and permits automobiletraffic, but at reduced speeds.Land use and transportation planningby coastal counties and cities and stateagencies should include a scenic boulevardconcept for Highway 90 and adjacentlands in all three counties. Likewise,if the CSX right-of-way becomesavailable, counties, cities, and state agenciesshould cooperate in creating a neweast-west corridor. These corridorsshould be beautifully landscaped andfriendly to adjacent neighborhoods,businesses, pedestrians, and tourists andshould maximize accessibility throughpublic transit and pedestrian walkways.An “overlay district” is a special zoningdistrict that is adopted by the eachcity to identify special resources or developmentareas. It is implemented byThrough theRenewalForum, landuse planners,architects,engineers, anddesignersevaluated the11 cities on theMississippi GulfCoast andpreparedsummaryreports forredevelopmentand revival.adopting new zoning provisions thatapply to that area consistently in eachcity. These regulations are in addition tothe existing provisions of the existingzoning ordinances. An overlay districtcan facilitate a wide array of developmentoptions and goals, including traditionalneighborhood development,transit-oriented development, clusterdevelopment, and historic preservation.The Commission recommends thatthe cities adjacent to Highway 90 cooperateto develop a model ordinancefor this transportation corridor. Theordinance should include consistentdevelopment requirements, setbacks,architectural specifications, and buildingrequirements. The ordinance alsoshould incorporate the SmartCode forproperties adjacent to the Highway 90right-of-way. The ordinance should encouragemixed uses, including downtownresidential and retail uses andneighborhood-friendly commercialuses.Highway 90 should be converted toa beach boulevard that encourages alternativemeans of transportation andhighlights the Gulf Coast’s most valuableasset, the waterfront. Each localgovernment along Highway 90 shouldadopt this ordinance as an overlay totheir existing zoning along the corridorand amend their comprehensive zoningplans accordingly. Likewise, upon acquisitionof the CSX right-of-way, a similaroverlay district should be created.Local governments ultimately will beresponsible for implementation. Theywill be responsible for retaining professionalsto assist with the developmentof an overlay district that is compatiblewith existing zoning and any revisedzoning in the coastal cities which borderHighway 90 and the CSX corridor.Local governments will require assis-

22 | LAND USEThroughout the Renewal Forumand the work of the Commission, South Mississippi has beenreferred to as a “clean slate,” providing an enormous opportunityto rebuild in a way that optimizes the natural beauty ofthe Gulf Coast. Nowhere is this statement more accurate thanwith regard to the Highway 90 corridor. Hurricane Katrina’swinds and flood waters destroyed most, if not all, of the existingstructures along this corridor. From Waveland to Pascagoula,the structural remains can be described as a fresh canvasawaiting a skilled artist’s creativity. Although the damage iscatastrophic, there is a seminal opportunity to create a beachboulevard that invites pedestrians to stroll along the beach,provides light rail to move residents to and from work andhome, transports visitors to and from hotels and retail areas,and permits automobile traffi c but, at reduced speeds.tance from federal and state governmentsto assist this process. The Commissionbelieves these objectives canalso be accomplished through the MississippiRenaissance Advisory Councilas recommended below.The Mississippi RenaissanceAdvisory CouncilLand use decisions are not limitedto zoning and comprehensive land useplans. As discussed above, a community’sland use decisions necessarily involve issuesof public health, transportation, environmentalquality, economic development,disaster preparedness and response,and the planning of neighboring townsand counties. As a result, a city or countymust traverse a complicated maze ofgovernment agencies in order to addressall of these issues comprehensively.Simply stated, land use decisions andpolicy-making are spread across numerousagencies of federal, state, and localgovernment.To foster the speedy recovery and theadoption of feasible land use planning,the cities and counties of the Coastmust be given easy and affordable accessto these agencies and decision makers.The Commission recommends that thegovernor, by executive order, establishthe Mississippi Renaissance AdvisoryCouncil to facilitate access to thesedecision makers. The advisory councilwould provide a forum for local andstate officials to address land use decisionswith federal and state governmentpolicy makers. It should prepare advisorystandards for land use and orchestratetraining and technical assistancefor building and zoning offices of localgovernments. The standards and technicalassistance provided by this agencywould not be mandatory, but wouldbe made available to counties and citiesto aid rapid consideration of newcodes and smarter development and toprovide supplemental personnel for administeringthe large volume of permitsduring the rebuilding period.The Council’s chairman should bethe executive director of the MississippiDevelopment Authority and its membershipshould include officials fromkey federal, state and local governmentagencies. (For suggested membership ofthe Council and organizational structure,see the full committee report atwww.governorscommission.com.)State Design CenterIn order to assist the implementationof the SmartCode and other products ofthe Renewal Forum, the Commissionfurther recommends the creation of acentral Design Center to offer technicalassistance and expertise to local governments.The Design Center wouldbe directed by the Council described

THE GOVERNOR’S COMMISSION REPORT | 23above and would include participationby architects, planners, engineers, attorneys,builders, building officials, andother professionals who might provideassistance to communities as they implementthe Commission’s recommendations.Additionally, the Design Centershould partner with public universitiesto provide access to students in theseprofessions who are willing to performinternships and provide assistance intheir areas of study.Mississippi statutes currently providea viable mechanism for providingpublic university research and assistance.The University Research Center(URC) was created in 1998 partially inresponse to filling the statewide planningand development void resultingfrom the demise of the Mississippi Researchand Development Center. Thisresource taps the expertise of specialists,researchers and graduate studentswithin the eight public universities forthe purpose of developing the state andhelping its citizens obtain a higher qualityof life. 9 The Commission anticipatesthat the URC would be a member ofthe proposed Mississippi RenaissanceAdvisory Council and would be primarilyresponsible for the implementationof the state Design Center.Local Design CentersThe Commission also recommendsthat each city and county, with assistancefrom the Mississippi Development Authorityand the Advisory Council, createlocal design centers to provide localzoning and building officials, as well asprivate developers, with practical, technicalassistance from land use planners,code experts, architects, and engineersprovided through government agencies,universities, and volunteer organizations.The design centers would assistIt is impossible and irrational toplan land use without planning transportation uses and methods.There are no issues more important to smart land use andlivability of coastal towns than moving the railroad and reversingthe customary expansion of interstate-standard highwaysthat are detrimental to neighborhoods and downtowns.Every regional agency and every county and city shouldevaluate transportation planning in conjunction with landuse planning. Future development should promote interconnectivityand provide non-automotive public transportationalternatives in the form of trolleys, light rail and sidewalksthat connect all neighborhoods and provide access to retail.each community in drafting necessaryamendments to comprehensive land useplans and in tailoring the SmartCode tothe specific needs of each community.One of the successes of the charretteprocess and the Commission was theinvolvement of the local communities.Addressing the social impact of thecharrette process, the Renewal Forum’sreport suggested that the rebuildingprocess should include a “central coordinatingand communications centerto facilitate the flow of information regardingevery aspect of recovery and rebuilding.”10 Through their local designcenters, citizens can gain access to informationand resources to assist in theimplementation of the SmartCode, thePattern Book and revised building codes.Local Housing ResourceCentersIn the coming months, proceduresshould be implemented to shorten the

24 | LAND USEapproval process for construction andinvestment in redevelopment. FEMAregulations and local permitting andlicensing approvals are key elements inthis process. The preliminary FEMAadvisory map will provide guidance tolocal residents and developers regardingthe impact of changes on futureconstruction. In order to assist localdevelopers and residents with the applicationof these guidelines and theSmartCode, the Commission recommendsthat temporary multi-disciplinarypermitting authorities, or “HousingResource Centers,” be established. Theyshould provide residents with more efficientand timely access to all necessaryapprovals for permitting, utilities,and licensing. The Housing ResourceCenters would be funded, staffed, andmanaged under the guidance of thestate design center and the local designcenters.Under state law, the governor hasauthority to create the Mississippi RenaissanceAdvisory Council by executiveorder, and the Commission recommendsthat the executive order be issuedas soon as possible. The Advisory Councilsshould begin work immediately andreport its progress to the Legislature inits 2006 Regular Session. The AdvisoryCouncil should then petition the Legislatureto create enabling legislationto convert this advisory council into astate agency within the Governor’s Officethat will coordinate decisions bythe state agency council members andwould receive funds to provide its advisoryand technical assistance to localgovernments. The Commission suggeststhat statutory authorization is necessaryto ensure participation of state agenciesand local governments.The state and local design centersand the local housing resource centersshould be established by the AdvisoryCouncil based upon available resourc-Do High-Rises Fit with New Urbanism?Condominiums and casinos can play a vibrant, meaningful role on the Mississippi Gulf Coast, butsome issues of design are critical if they are to be real assets to their communities.Scale is key. High-rises are rarely welcome adjacent to single-family detached housing. Ideally,they should be designed into a downtown’s fabric and buffered by a few blocks of mid-risestructures.High-rises should build to the street. They should shield parking from view with liner retail or otherpublic functions. If they are designed to be aware of one another and of their collective infl uence,they offer win-win situations to developers and to the community.They can bring retail to the street level and shape the public realm to enhance the pedestrian experience.This brings more people on the streets, which, in turn, means more business forshopkeepers — and casinos.Downtowns, then, will be alive with possibility instead of places to drive through on the way tocasino and condo parking lots.-- Susan Henderson, AIA, Head of the Architecture Team for the Mississippi Renewal Forum

THE GOVERNOR’S COMMISSION REPORT | 25es and funding. The Advisory Councilshould partner with universities andprofessional organizations to ensure aproper coordination of resources and toavoid overlapping objectives.The Mississippi RenaissanceCorporationAfter a natural disaster such as Katrina,many residents and homeownersare left with nothing but vacant land.Due to the lack of flood insurance,many of these people will be forced tosell their properties at values well belowthe value of their property prior tothe hurricane. Due to changes in theflood zone south of the CSX railroadand increased building requirements,it may be economically unfeasible forresidents to return or rebuild. As a result,those residents who lost their homes,and personal belongings will lose evenmore – the chance to realize possibleappreciation in land values during therebuilding effort.The current real estate market on theCoast promises increased land values.Casino corporations are preparing tomove inland. Additionally, large condominiumdevelopers are clamoringto acquire property along Highway 90.If the residents and business owners ofSouth Mississippi decide not to rebuild,they should be given a mechanism bywhich they can pool their ownershipinterests and properties into a commonstate-approved entity to either markettheir property and realize the benefitsof the sale of a larger tract, or developtheir property with a group of adjacentowners and realize the benefits of economiesof scale.The Commission recommends that,subject to the governor’s approval, thestate enact legislation enabling propertyowners in neighborhoods anddowntowns to join together in small,geographic groups to redevelop downtownsand neighborhoods accordingto the concepts of connected, walkablecommunities outlined in this report.The state should provide financial incentivesfor building affordable housingin accordance with new storm-worthybuilding codes.The Commission specifically recommendsadoption of legislation creatinga Mississippi Renaissance Corporation,a for-profit, state corporation with thepublic purpose of marshalling capital,planning projects, and assisting privatedevelopers and local governments inpublic-private partnerships in smartdevelopment consistent with the coreland use values stated in this report.The state corporation would providetechnical assistance to local neighborhoodand downtown groups, workingin public-private partnerships withdevelopers and local governments, toform local renaissance corporations toplan and build site-specific projects.A key purpose of such local corporationswould be to provide a vehicle forland-pooling for joint projects by localresidents and property owners to assistpre-Katrina residents in rebuildingor relocating according to individual,voluntary choices. By pooling land andplanning larger projects for a wholeblock or a group of blocks, such corporationswould assist low- and moderate-incomeresidents and small businessesin adding value to their propertyby participating in larger, mixed-useprojects that would provide residentialopportunities for pre-Katrina residents,as well as new residents seeking housingnear work.The Commission recommends to theGovernor that this legislation be submittedin the 2006 Legislative Session.The legislation should be approved andappropriate funding be provided for thecreation of the Mississippi RenaissanceCorporation. Federal, state, and localagencies also should provide fundingto encourage neighborhood residentsand downtown businesses to form thesevoluntary organizations for redevelopment.After passage of the legislation, privateland owners will be responsible forthe creation of private or non-profitrenaissance corporations for the poolingof land. The Mississippi RenaissanceCorporation should appoint a directorwho is responsible for assisting privateland owners with the formation, funding,and management of these corporations.

26 | INTERMODAL TRANSPORTATIONINTERMODALTRANSPORTATIONAfter Katrina, the immediateconcern oftransportation officialsin South Mississippiwas repairing damagedroads, bridges and ports. A vast reconstructioneffort began almost immediatelyand is ongoing. In addition toreporting on that work, the Commissionalso has considered the challengesand opportunities facing transportationthat extend beyond the initial period ofrecovery to 20 or more years into thefuture.The Commission focused on sevenareas of special interest to citizens,elected officials, and other communityleaders:■ Relocation of CSX railroad operationsand acquisition of the CSXrail line and right-of-way for thedevelopment of a new east-westtransportation thoroughfare.■ Conversion of Highway 90 to apedestrian-friendly “beach boulevard.”■ Redesign of the Canal Road-StatePort connector to accommodateplans for the new east-west corridor,the beach boulevard, and thestate port in Gulfport.■ Creation of a new master transportationplan for a multi-modalnetwork that improves automobiletraffic flow while providing alternativesto car travel, such as bikeways,jogging paths, pedestrian walkways,and trolleys; and improves east-westand north-south travel for the centraland northern portions of thecoastal counties and Peal River,Stone, and George Counties.■ Development of a public transitplan and system in conjunctionwith the new transportation masterplan.■ Evaluation of the role and missionof the three coastal ports.■ Development of inland ports, particularlyan inland port to promotemaritime growth of the Port ofGulfport.Dealing with the DamageThe CSX rail line runs east and westalong the coastline through the threesouthern-most counties. CXS sustainedsignificant damage and total destructionin certain areas along the Coast. Therailroad bridge over the Bay of St. Louiswas destroyed, and the railroad bridgeover Biloxi Bay was heavily damaged. InHancock County and western Harri-

THE GOVERNOR’S COMMISSION REPORT | 27Biloxi-Ocean Springs bridge post-Katrina.Photo: Sun-Herald

28 | INTERMODAL TRANSPORTATIONson County, railroad tracks were rippedaway from track beds, track beds werewashed out, and signal systems sustainedheavy damages. Damages sustained bythe rail system in the remainder of HarrisonCounty and in Jackson Countywere less dramatic. Official CSX reportshave placed the CSX rail system damagein the coastal counties at approximately$250 million. CSX is presentlyconducting repairs to its rail system andplans on resuming normal operations inFebruary 2006. 1Within a few hours on August 29,2005, Katrina returned Highway 90into a beach boulevard but not onewith the welcoming concept of a pedestrian-friendly,scenic drive. The hurricanedestroyed or heavily damagedmuch of Highway 90 from the Bay St.Louis area to the Biloxi-Ocean Springsbridge in eastern Harrison Countywith most of the destruction and heavydamage occurring along the beachfrontroute. Destruction or heavy damagewas widespread to the road surface,road bed, curbing, drainage system, trafficsignals, and road signage. Every partof the Highway 90 roadway system wasaffected.The Mississippi Department of Transportation(MDOT) initiated repair effortsimmediately after the storm, andthese efforts are continuing with all ofHighway 90 projected to be open forlimited two-lane traffic before the endof the year and some areas opened forlimited four-lane traffic. The estimatedcosts for repairing and rebuilding arehigh: $100 million for Highway 90 and$400 million to rebuild the Bay St. Louisand Biloxi-Ocean Springs bridges. 2The hurricane also imposed heavydamages on Coast Transit Authority(CTA), the regional public entity thatprovides public transportation servicesQ:Why doexpandedhighways fillup withtraffic fasterthan designerspredict?on the Coast. The undercarriage of eachCTA vehicle was submerged in saltwater for eight to 10 hours. AlthoughCTA began limited bus operations onSeptember 5, 2005, the bus fleet has experiencedsevere transmission failures,starter failures, and a number of airbrakesystem valve problems. Vehicles also areexperiencing alternator failures due towater intrusion, and it is anticipated thatwithin the coming months, differentialand mechanical parts of the brake systemswill fail because of saltwater exposure.Furthermore, significant damagewas sustained to CTA’s Gulfport TransitCenter, its bus stop benches and shelters,and its operations facility. 3Prior to Katrina, CTA dependedon locally generated revenue and localgovernment support for 50 percentof its operating budget. These fundingsources have been dramatically cut.When CTA resumed limited operationsafter the hurricane, it provided freetransit services to the public, as manyriders were unable to pay a fare. CTAand local governments want to continuefree services during the recoveryperiod. 4 CTA has submitted an EmergencyPublic Transportation Plan to theUnited States Congress seeking 100percent emergency funding to providefare-free public transportation for thenext two years and to fund repairs and/or replacement of facilities and equipment.The damage inflicted upon CTAproperty and vehicles and the loss ofriders, however, presents a remarkablefinancial challenge.The Port of Gulfport sustained heavylosses and will require significant financialinvestment to resume pre-Katrinalevels of operations. At the East andWest Terminals, berths were destroyedor remain unusable until debris is removed.Several buildings are total losses;

THE GOVERNOR’S COMMISSION REPORT | 29A:Because of aphenomenonknown as“inducedtraffic.”When planners add capacity,such as new lanesto a multi-lane highway,the expansion changesdrivers’ behavior. Thosewho had been takingother routes, traveling atoff-peak times, or choosingother means of transportationabandon alternativesto take advantage of thenew, higher capacity ofthe old highway. Congestionbuilds rapidly—morerapidly than the populationgrowth on whichtransportation planningis often based, and thenew lanes become asclogged during peaktimes as they ever were.This is why wider roadsdon’t necessarily leadto better traffi c fl ow.Source: Governor’sCommission. Mississippi Renewal Forum.Final Team Reports. Transportation.“Building a 21st Century TransportationSystem for the Gulf Coast.” 19 Oct. 2005..others will require millions of dollars inrepairs. 5Damage to facilities at the Port ofPascagoula is estimated to be approximately$10 million of insurable damagewith approximately $2 to 3 million ofuninsurable damage and extra expense.Repairs were underway to return thepublic facilities to approximately 80percent of pre-Katrina operations bythe end of December. 6The Port in Pascagoula supported reliefefforts by returning basic services tooperation by September 9, allowing thehospital ship USNS Comfortto berthat the Port where approximately 2,000persons received medical treatment.In addition, emergency modificationswere made to allow the berthing of thecruise ship Holiday, which continues toprovide shelter to approximately 1,600Coast residents. Likewise, preparationswere under way to receive shipmentsof building materials beginning in December.7At Port Bienville Industrial Park inHancock County, Katrina caused anestimated $70 million in damages toindustries and companies. These companiesemployed approximately 1,250people, not including subcontractors andsuppliers. Three companies employingapproximately 200 people have ceasedoperations since Katrina and show noindication of resuming operations. CSXRailroad lost 38 miles of track and 11bridges that resulted in termination ofrail service for rail-dependent industrieswithin Port Bienville. As a result, theseindustries turn to other means of commercialtransportation at costs increasedby approximately 30 percent to 40 percent.8 Even though the damage sustainedby the Port Bienville IndustrialPark tenants was significant, the Port’swharves were not damaged, and the canalsystem serving the Port received aminimal amount of silting.RecommendationsCSX Rail LineThe location of the CSX east-westrail line was at the forefront of publicdebate on the Coast long before the arrivalof the economic boom from gamingand long before Hurricane Katrina.For decades local elected officials, communityleaders, businesses, and residentshave unsuccessfully engaged in efforts tosecure the removal and relocation of therail line and its rail operations. The vastmajority of the CSX rail traffic constitutes“thru freight trains,” trains thatpass through the Coast without stoppingand serving local industries, withlimited service to the Port of Bienvilleand the Port of Pascagoula. Problems associatedwith the rail line became morepronounced as the casinos fueled economicgrowth along the Coast and increasedtraffic congestion and gridlock.With 170 grade crossings along theCSX rail line in the three coastal counties,the risks to motorists and pedestrianshave increased with the traffic. FromJanuary 2000 through August 2005, 90grade crossing accidents involving CSXtrains were reported to the FederalRailroad Administration. 9 In additionto the dangers, the noise and other annoyancesassociated with the trains aredetrimental to development of neighborhoodsnear the rail line.Discussions have been underwaybetween CSX and the Commissionfocusing on the joint goal of movingthe rail line and/or relocating CSX railoperations, and CSX has advised theCommission that it will evaluate all optionsto make this move a reality. Relocationof the rail line would eliminate

30 | INTERMODAL TRANSPORTATIONOn publictransportation:Even before Katrina, thetransportation infrastructure didnot provide the general publicwith much incentive to utilizepublic transporttion, which inturn limited the potential of CTA’sridership. Ridership directlydetermined operational andcapital revenue and federalfunding, and revenue andfunding limited CTA’s abilityto provide innovativeand expanded publictransportation services tothe Gulf Coast. It was theclassic “domino effect.”some of the public safety concerns andtraffic annoyances brought by trains. Inaddition, the project would open therailroad track bed and right-of-way fordevelopment of a new transportationcorridor on which to locate an eastwestthoroughfare that could includetrolleys, bicycle lanes, and pedestrianwalkways. Though it might require theacquisition of additional right-of-way,such a thoroughfare could provide fourroadway lanes that could take some ofthe traffic pressure off Highway 90 andallow it to assume the character of abeach boulevard.If popular support exists for this ideaand CSX is willing to abandon the existingrail bed, what are the obstaclesto making this happen? Costs and theright legal mechanisms for conveyanceare two major impediments, althoughCSX and state regulatory officials viewneither as impossible to overcome. Thenumbers, however, are daunting. Onestudy puts the price tag for relocating therail line north of I-10 at $795 million.That idea is no longer seen as practical.Through the Commission’s work, however,CSX has identified other optionsthat could cost substantially less, requirevery little additional right-of-way, andtake significantly less time to complete.CSX is to be commended for workingaggressively to address the issues so as toprovide a definitive answer.If CSX agrees to the conveyance, thestate could acquire the right-of-way in12 to 18 months. The Governor andMississippi’s congressional delegationwould be responsible for implementingthe recommendation to acquire theexisting CSX rail line and right-of-way.The balance of the funding requirementsmust come from the state.Highway 90 ConversionEconomic progress and the lack of acoordinated approach between land usedevelopment and roadway infrastructureconstruction resulted in Highway 90losing its personality as a scenic beachboulevard and evolving into a heavilytraveled and congested highway. TheGulf Coast now has the opportunityto redefine permanently the characterof Highway 90 and return it to a pedestrian-friendlybeach boulevard thatreduces vehicular traffic and increasesopportunities for bike paths, pedestrianwalkways, and public transit.The present Highway 90 should re-main a four-lane road and should not beenlarged to six lanes. The Highway 90conversion should incorporate a GulfCoast bikeway that extends the entirelength of the coast with designated bikelanes on the Bay St. Louis bridge andthe Biloxi-Ocean Springs bridge, andlinkages to inland bayous and greenways.To reach this goal a new east-westtransportation thoroughfare must bedeveloped to remove the majority ofvehicular traffic from Highway 90. TheCSX rail line and right-of-way discussionabove provides a potential location

THE GOVERNOR’S COMMISSION REPORT | 31for such a thoroughfare. If the CSXproperty cannot be acquired, an alternateroute for a new east-west road forvehicular traffic must be considered.The ability of Highway 90 to assumea boulevard character may be affectedby the rebuilding design of theBay St. Louis and Biloxi-Ocean Springsbridges. The Mississippi Departmentof Transportation (MDOT) intends torebuild the Bay St. Louis and Biloxi-Ocean Springs bridges in their existingfootprints at a total cost of approximately$400 million. The Biloxi-OceanSprings bridge has generated much debateas to whether a four-lane bridgeshould be built, instead of the six-lanebridge proposed by MDOT.The Commission has specific con-cerns as to the traffic volume and congestionthat will be generated by a sixlaneBiloxi-Ocean Springs bridge thatfeeds into the present four-lane Highway90. If this occurs, MDOT must developdesign features and plans to divertsome of the traffic traveling west overthe bridge to a new east-west roadway.Likewise, plans must be developed todivert the majority of commercial andprivate vehicles from Highway 90 ontoa new east-west thoroughfare. Providingsolutions to these traffic issues willrequire transportation and traffic engineeringstudies to address traffic volumes,flow and control, traffic signageand signalization, and redesign of existingroadways and thoroughfares.The Canal Road-Port of GulfportConnectorThe growth and expansion of Gulfport,primarily fueled by the gamingand tourism industries prior to Katrina,created significant traffic congestionproblems on Highway 49 from pointsnorth of Gulfport to the intersectionwith Highway 90. Developmentof business and commercial propertiesalong Highway 49 north of Interstate10 into central Harrison County contributedto increased use of Highway 49by commercial and private traffic. Thisgrowth made Highway 49 the primarynorth-south traffic artery from thenorthern Harrison County to the intersectionwith Highway 90. Highway 90Highway 90, Gulfport.Photo: Sun-Herald

32 | INTERMODAL TRANSPORTATIONOn the prospects forBeach Boulevard:The Gulf Coast now has theopportunity to redefinepermanently the character ofHighway 90 and return it toa pedestrian-friendly beachboulevard that reducesvehicular traffic andincreases opportunities forbike paths, pedestrianwalkways, and public transit.is unable to handle effectively the largeintermix of commercial and private vehicletraffic flow which grows daily.After conducting studies to arriveat a solution to this problem, MDOTselected a route for a connector interstatehighway west of Highway 49. Theconnector, Interstate 310, is planned tobegin at the Canal Road interchangeon Interstate 10 and extend to a pointon Highway 90 at the Port of Gulfport.The connector is designed to reducetraffic flow on Highway 49 and assistin reducing traffic volume on CanalRoad.Members of the Commission and localofficials have met with MDOT officialsto discuss redesigning the connectorto accommodate and support thefollowing Commission recommendations:(1) a new east-west thoroughfare,(2) the Highway 90 conversion to a pedestrian-friendlybeach boulevard, and(3) Port of Gulfport activities, whichare evolving into a mix of commercialbusinesses and gaming. The Commissionrecommends that MDOT redesignthe I-310 connector to accommodateand support these three recommendations.MDOT agrees and is currently workingwith the State Port Authority, theCity of Gulfport, MDA, and the Commissionto address this critical issue. TheGulf Regional Planning Commission,MDOT, and the Federal Highway Administrationshould all share responsibilityin different degrees for the implementationof this recommendationwith funding from federal highway appropriationsand state participation.A Transportation Master PlanThe unprecedented damage wroughtby Katrina and the subsequent decisionto rebuild the Gulf Coast according to anew vision has rendered previous transportationplanning obsolete.The Commission further recognizesthat George, Stone, and Pearl RiverCounties and the northern parts of thethree coastal counties are now beingused as staging areas for the rebuildingof South Louisiana and the coastal regionsof Mississippi and Alabama. Thesecounties were experiencing significantpopulation growth before Katrina; however,this growth has been compoundedwith the influx of hurricane evacueesand construction workers, all of whichhas further stressed the transportationinfrastructure system.In addition to planning the rebuildingof the coastal transportation infrastructure,planning for east-west and northsouthconnectors and roadways in theseother geographic areas is equally important.A new, more comprehensivetransportation master plan for the GulfCoast and the South Mississippi countiesis necessary.The Commission recommends thata transportation and traffic engineeringfirm be retained to study, evaluate, andproduce a transportation master planfor the Mississippi Gulf Coast, includingthe six South Mississippi counties. Suchplan should be designed to: (1) providea pedestrian-friendly, multi-modaltransportation network that improvestraffic flow and provides for bikeways,jogging paths, pedestrian walkways,and trolleys, and (2) improve east-westand north-south travel for the centraland northern parts of the coastal countiesand George, Stone and Pearl Rivercounties.This project should include the conversionof Highway 90 to a beach boulevardand the development of a new

THE GOVERNOR’S COMMISSION REPORT | 33east-west thoroughfare utilizing theCSX rail line and right-of-way or analternate route. The master plan shouldbe compatible with and enhance theland use concepts and recommendationsof the Commission.The Gulf Regional Planning Commission,MDOT, the Federal HighwayAdministration, and the RenaissanceAdvisory Council (as proposed in thesection on Land Use) would share responsibilityin different degrees for theimplementation of this recommendation.Funding is available throughFEMA, MDOT, and the Federal HighwayAdministration, which was recentlyappropriated $2.75 billion by Congressfor rebuilding efforts.Public TransportationCTA Lighthouse Station, BiloxiEven before Katrina, the transportationinfrastructure did not provide thegeneral public with much incentive toutilize public transportation, which inturn limited the potential of CTA’s ridership.Ridership directly determinedoperational and capital revenue andfederal funding, and revenue and fundinglimited CTA’s ability to provide innovativeand expanded public transportationservices to the Gulf Coast. It wasthe classic “domino effect.”Free public transportation for a twoyearperiod is critical to recovery andrebuilding efforts since many peoplehave lost their vehicles and rely on publictransportation to travel to relief centers,work, grocery stores, and shoppingcenters. 10 As communities pass from therecovery stage to the rebuilding and renewalstages, public transportation becomesan integral part of the renaissanceof South Mississippi. The Commissionmakes the following recommendations:■ CTA should apply for all availablefederal funding to compensate forthe revenue shortfall resulting fromKatrina, and to repair and replacecapital facilities and vehicles. CTAofficials have been meeting with FTArepresentatives and made written applicationto Congress for emergencyfunding.■ An experienced and qualified transportationengineering firm should becontracted to undertake a comprehensiveinter-modal transportationplan, including public transportation.The plan should focus on providingpublic transportation that affords apleasant and cost-effective means oftraveling to work, visiting casinos,and sightseeing and shopping forPhoto: Sun-Herald

34 | INTERMODAL TRANSPORTATIONOn the needfor a new master planfor transportation:The unprecedented damagewrought by Katrina and thesubsequent decision to rebuildthe Gulf Coast according to anew vision have rendered previoustransportation planning obsolete.residents and tourists. It also shouldencourage less reliance on the car fordaily use.■ CTA should obtain funding for a feasibilitystudy addressing the constructionand operation of an electric trolley/cablecar system along Highway90 and other innovative approachesto increasing ridership in conjunctionwith the land use and intermodaltransportation recommendations. TheMississippi Department of Transportationshould coordinate Highway90 design and rebuilding plans withCTA to provide for a track bed locationwhich supports a trolley/cablecar system. The Commission notesthat CTA has applied for a $400,000grant to study the feasibility of suchprojects. 11■ Casinos, condominiums and retaildevelopers, particularly those locatedalong Highway 90, should work andcoordinate with CTA in the designand development of rider pickup stationsfor rubber-tire trolleys and railtrolleys. This effort would further reducethe volume of vehicles travelingon Highway 90 and contribute to apedestrian-friendly beach boulevard.The Coastal Transit Authority wouldbe responsible for implementing theserecommendations in coordination withGulf Regional Planning Commissionand other entities responsible for theimplementation of a new transportationmaster plan. Funding resources wouldinclude federal, state, and local funds.Coastal PortsThe Commission recommends thatthe Governor establish a Coastal PortCouncil to work directly with the MississippiDevelopment Authority (MDA)to study and evaluate the role and missionof the Port of Gulfport and thePort of Pascagoula. We also recommendthat an experienced, qualified consultantconduct a study of these two portsand develop a master plan designed tomaximize the growth potential of eachport and minimize duplication of operationsand services.The Hancock County Port and HarborCommission (HCPHC) has voicedopposition to being included in aCoastal Port Council since it is currentlycompleting a master plan that specificallyaddresses these issues, as doesthe recently completed LATTS study.According to HCPHC, it does notcompete for the same customers andproducts as the Ports of Gulfport andPascagoula and has focused its planningand marketing efforts accordingly. 12The membership of the Coastal PortCouncil should be appointed by thegovernor and should consist of representativesof the two coastal ports, the localchairman of Local 1303 of the InternationalLongshoreman Association, andany other persons deemed appropriatefor membership by the governor.Inland Port DevelopmentThe Port of Gulfport encompasses asignificant land area that is occupied bylarge truck trailers and containers thatawait transportation to various destinations.Most of this cargo is subsequentlytransported from the Port by trucks anda small percentage is moved by rail. Therail line into the Port crosses Highway90 at grade, disrupting traffic flow onHighway 90 and contributing to vehicularaccidents as trains utilize thecrossing. The Commission, therefore,recommends that property be acquirednorth of Highway 90 and developedas an inland port or staging facility inpreparation for shipment of unloadedcargo to its final destination.Such an enterprise would allow cargoto be unloaded directly onto trucks atthe Port of Gulfport and immediatelytransported to the inland harbor fortemporary holding until final movementby truck or rail. An inland portwould reduce the amount of land area

THE GOVERNOR’S COMMISSION REPORT | 35needed by the Port of Gulfport at itscommercial maritime operations, openland for casino and related developments,and eliminate the railroad gradecrossing over Highway 90 as it entersthe Port.The governor, Harrison County,MDA, and Jackson County would shareresponsibility for implementing recommendationsconcerning the coastalports and an inland port; however, JacksonCounty would not participate inthe implementation of the inland portrecommendation. Funding resourceswould include the Mississippi DevelopmentAuthority, the state of Mississippi,and Harrison and Jackson counties. Itis recommended that the Coastal PortCouncil make recommendations as tothe funds received by the Port of Gulfportand the Port of Pascagoula.Top: Bay St. Louis bridge.Bottom: Barges washed ashore.Photos: Courtesy of CSX

36 | PUBLIC SERVICESPUBLICSERVICESKatrina not only destroyedhomes, businesses,and personalproperty, it left largecommunities strandedwithout shelter, food, water, sewer, andelectricity. If South Mississippi learnsnothing more from the effects of thiscatastrophic storm, it must re-evaluatethe management of public services forcommunities vulnerable to natural disasters.One of the most recurring issuesto emerge from discussions regardingpublic services is the need to developa multi-county, comprehensive plan forwater, sewer, and solid waste facilities.Other ideas included: sharing certainservices to increase efficiencies whilepreserving the identities of individualcommunities; establishing a plan for recyclingand disposing of debris followinga disaster; evaluating technologiesfor a more robust and reliable communicationssystem; and improving emergencyresponder disaster plans in termsof staging resources, manpower, andequipment.Commission research was bolsteredby recommendations that came fromthe Mississippi Renewal Forum in mid-October. The Renewal Forum not onlyfocused on land-use issues, but also addressedthe need for regional planningof public services. Renewal Forum designteams identified the need to use therebuilding period as an opportunity tosolve pre-existing problems and makekey infrastructure resilient to hurricanesand other natural disasters. AmongRenewal Forum suggestions: movingutilities underground to reduce hurricanedamage; enhancing water qualitythrough integrated water systems; upgradingand regionalizing wastewatertreatment; discouraging individual sep-

THE GOVERNOR’S COMMISSION REPORT | 37

38 | PUBLIC SERVICEStic tank use; and establishing emergencyresponse plans for debris recovery anddisposal.The Governor’s Commission alsoorganized town hall meetings with theresidents in South Mississippi to presentideas and to listen to citizens’ concerns.The Infrastructure Committee continuedto develop these ideas in severalmeetings during November and December.The call for regionalization that characterizedso many of the conversationssuggests that city and county governmentsaddress problems, issues, opportunities,services, and facilities in acollective manner. Successful regionalorganizations throughout the countryhave all been based on a simple model:a long-term process with specific goals,objectives, work programs, committees,and committee assignments designed toachieve optimum cost and service performancewith minimum bureaucracy.A regionalized approach would viewthe six South Mississippi counties asone operational area with many components,alignments, configurations, andcoalitions.The Need for SharingIn effect,the humancommunicationsdisastercompounded theimpact of thenaturaldisaster.Demands facing individual local governmentsgrow at increasing rates. Mostgovernmental services affecting dailylife are performed by local governments.Additionally, public services arehighly regulated. State and federal governmentscontinually adopt unfundedmandates to local governments andcontrol the ability of local governmentsto tax their citizens and borrow money.Local governments should communicatewith each other their issues,concerns and opportunities about theservices provided to their citizens. It isvirtually impossible for each local governmentto construct facilities and provideservices in a cost-effective mannerwithout working in cooperation withother local governments. Functionssuch as transportation, technology, environmentalprotection, public safety,water and sewer collection and treatment,and economic development aretoo complex and expensive for localgovernments to chart their path alone.In any regional system, however, communitiesthat have already invested inupgraded infrastructure should be rewardedand not penalized.IntergovernmentalCooperationVirtually every type and level of generalpurpose government is involved,to some degree, in the provision of thesame types of services and facilities.Even domestic protection, which mostcitizens identify as a federal responsibility,has now been extended to localgovernments after the terrorist attackson September 11.The methods by which an individualgovernment can spend its tax dollarsmore effectively by working withother levels of government are limitless.If a county has a responsibility, issue orproblem, it also affects the cities withinthat county, surrounding counties, aswell as the state and federal governments.For example, it is virtually impossiblefor any local government to meet allof the environmental responsibilities itfaces by acting alone. Additionally, transportationsystems must be constructedthrough the use of joint funding andmust be part of an overall functioningnetwork to reach any level of success. Inthe area of law enforcement and criminaljustice, if agencies and organizationscannot communicate with one another,

THE GOVERNOR’S COMMISSION REPORT | 39criminals and criminal activity becomevery difficult to control.Regional StructureUnder state leadership, the more than20 local governments that comprise thesix lower counties have the opportunityto join together and create a regional organizationto lead the development of along-range, comprehensive plan that includesthe management of water, sewer,and storm water utilities. This regionalorganization must have local governmentroots and be sensitive to privateeconomic interests that will foster economicgrowth and development.Several organizations currently existthat service all or part of the countiesof George, Jackson, Hancock, Harrison,Pearl River, and Stone. 1 These multi-jurisdictionalorganizations could participatein the regional entity that may besolely responsible for the planning andprovision of these regional services.Regional PlansThere are several public services thatare amenable to a regional structure.The most obvious are solid waste disposal,water, sewer, transportation, correctionalfacilities, and tourism development.Voluntary cooperation between localgovernments is difficult to achievewithout leadership and financial incentives.There should be a regionalauthority responsible for preparing aregional plan and addressing all appropriatefacilities and governmental services.Initially this plan should be developedwithout regard to governmentalboundaries. Once the plan is adopted,the regional authority must carry outcertain common functions and participatinggovernments must share in thecost proportionately.One of the most important componentsof the regional plan is identifyingwhich governments and individuals areresponsible for implementation of itsdifferent parts. The best example on theMississippi Gulf Coast is in the area oftransportation.Currently, there is a long-range, regionaltransportation plan requiredby federal law, which determines howstate, federal and local governments willspend transportation funds. While individualgovernments may be buildingdifferent components of this transportationnetwork, it is nevertheless a comprehensive,regional transportation planthat is being implemented intermodal.(See chapter on intermodal iransportation.)State government has become empoweredto direct and greatly influencehow federal spending occurs. The stateshould not only require regional planswhere appropriate but should consolidategrant funds into a Regional ServicesFund. All spending from this fundmust be aimed at implementation of theregional plan. It is unlikely that any localgovernment will ever fully divest itselfof providing any of these services, butthey will look at the best means of sharingresponsibilities, duties and requirements.A regional authority would be alikely candidate to assist in this process.Role of State GovernmentMany times regionalism and intergovernmentalcooperation require externalleadership forces to be successful.This is primarily accomplished throughfunding incentives. The governor, orhis designee, should use all appropriateinfluence to insist that state and federalagencies use their grant resources tosupport regionalism. Most public facilitiesprojects involve multiple fundingOfficials andresidents assumethat there will bea large infusion ofnew capital intothe Gulf Coastand state ofMississippi as partof the recoveryprocess. Thesefunds should beused to supportregional planswheneverpossible.[I]nfrastructurespending shouldbe reestablishedas the highestpriority for stateand localgovernments.

40 | PUBLIC SERVICESsources. The governor should influenceagencies, such as the MississippiDevelopment Authority, Departmentof Environmental Quality, Departmentof Transportation, and the State Boardof Health to pool their funding for theGulf Coast and carry out a regional planfor different types of services.State leadership and policy directionis a critical element in the implementationof a regional strategy. Without astrong commitment on behalf of stategovernment, developing regional serviceswill be extremely difficult. By establishinga Regional Services Fund andrequiring that these funds be spent tosupport the implementation of regionalplans, a funding mechanism that candrive the process. Officials and residentsassume that there will be a large infusionof new capital into the Gulf Coastand state of Mississippi as part of the recoveryprocess. These funds should beused to support regional plans wheneverpossible. Additionally, infrastructurespending should be reestablished asthe highest priority for state and localgovernments.RecommendationsA Regional Public UtilityAuthorityPublic services such as water, sewer,and storm water currently are managedon a city and county level. Eachcommunity bears the burden and expenseof managing private contractors,or training personnel, outfittingequipment, and maintaining facilities.After a natural disaster, the restorationof these services is critically dependenton the quick recovery of each county,city, and community. Smaller and morerural communities do not have the resources,capabilities, or personnel for aquick recovery or for the speedy restorationof services for its residents. Largercommunities suffering significant lossesfrom such a disaster also face the sameproblem.In addition to the needs for recoveryplanning, there are current inefficienciesin the provision of public services acrossthe Coast. These inefficiencies result inineffective use of resources, unresponsiveness,inadequate planning, and ultimatelyin degraded customer service.For instance: There are 14 municipalwater and sewer systems, eight separatewater districts, 19 water associations,and over 30 private water companiesoperating separately across the region. 2Many of the smaller systems are undercapitalized,under-sized, and in a poorstate of maintenance. Prior to Katrinasome of these systems would not havebeen able to support expected growthin the region; post-Katrina the situationis even more difficult, since most will beunable to repair and grow fast enoughto keep up with growth predictions. Inaddition, available funding in the shorttermof hurricane recovery is designedto rebuild to the pre-disaster state. If thesystems were inadequate before, theyshould not be rebuilt to an outdatedstandard.As a result of Hurricane Katrina, waterand sewerage systems on the MississippiGulf Coast suffered significantdamage. Temporary repairs have beenmade in some areas; however, long-termusage issues still must be addressed. Forexample, the Harrison County WasteWater Management District (HCW-WMD) sustained significant damage toregional waste water pumping, transferand treatment systems and requires approximately$26 million to restore thefacilities to its original condition.The same is true for the MississippiGulf Coast Regional Wastewater Authorityin Jackson County, which re-quires approximately $26 million torestore its facilities to their originalcondition. Likewise, the sewer systemsin the cities along the Coast sufferedextensive flooding, causing significantdamage to motor control centers, pow-er panels and instrumentation systems,which were above ground but flooded.Under current ownership and man-agement of water and sewer systems,each community is responsible for re-storing its own facilities for collectionand transport. Governments have expe-rienced a loss of cash flow, however, dueto reduction of sales tax revenues. Mostsmall businesses that were vital to theeconomy of the cities such as Bay St.Louis, Waveland, Pass Christian, LongBeach, Gulfport, and Biloxi have beendevastated. Some may never come back.For those that will return, it may be

THE GOVERNOR’S COMMISSION REPORT | 41several months before they will see anysales tax revenues.Adding to the problem, other sourcesof revenue such as water fees and ad valoremtaxes have also been significantlyaffected. Most cities lost a significantportion of their ad valorem tax base andwater customers due to the total devastationalong Highway 90 and south ofthe CSX railroad corridor.Additionally, alternative water sourcesare needed. Katrina’s storm surge causedcontamination of wells and other watersupplies. Alternate water collectionsystems or a reservoir to protect againstwater shortages should be considered toprotect against future disasters. A reservoirnot only would supply additionalresources, but also could provide a recreationalresource and, potentially, floodcontrol.A regional authority operating acrossthe six counties may provide significantopportunities and cost reductions. Atask force composed of the Departmentof Environmental Quality, the Missis-sippi Department of Health, and thePublic Services Commission examinedthe concept and concluded that such anentity would be effective in meeting allthe needs outlined above. (More detailson task force considerations may befound in the full subcommittee reportat www.governorscommission.com).Consistent with the recommendationsof the task force and other planningagencies, the Commission recom-mends that the state legislature create aregional utility authority for the pur-pose of managing sewer, water, stormwater, and other utility services acrossthe six southern counties.This authority should be authorizedto construct new facilities and acquireexisting facilities from counties, mu-nicipalities, rural water associations, andindependent providers. These providerswould maintain billing and connec-tion responsibilities for their serviceareas. The regional authority would beresponsible for transport of water andsewage and for sewage treatment.A study should be commissioned im-mediately, with input from all affectedcounties and cities, to determine thebest structure of a regional utility au-thority and an implementation plan.The plan should be completed in threemonths. The Commission recommendsthat the regional authority be createdby the Mississippi Legislature utilizinglegislation modeled after successful re-gionalized utilities such as the DeSotoCounty Regional Utility Authority, theMississippi Gulf Coast Regional Waste-water Authority, the HCWWMD, andentities currently providing such servicesin other states. The proposed legislationshould provide the regional au-thority with a broad range of oversightauthority over water, sewer, storm wa-ter, and other critical utilities. (Sampleenabling legislation may be viewed inthe full subcommittee report at www.governorscommission.com).The regional authority should be au-thorized to do the following:■ construct new and centrally locatedfacilities and build new systems inunincorporated areas that have noservice-area entity established;■ build interceptor lines to existing infrastructure;■ by agreement with municipalities,acquire and rebuild existing plantsand systems in municipalities;■ by agreement with municipalities,take over and administer city systemsin municipalities that choose to berelieved of the burden;■ acquire existing private systems;■ provide a six-county contract for operationand maintenance of all plantsand water wells;■ provide service area functions suchas bill collection and maintenance oflift stations that municipalities, counties,and public utility districts mayvoluntarily choose to transfer to theregional authority;■ partner with the Pat Harrison WaterwayDistrict to commission a studyto evaluate the cost and benefits of areservoir to serve South Mississippi;■ develop a water, sewer, and stormwater plan for the six-county region;and■ coordinate funding from state andfederal resources.The provision of water and sewer ser-vices necessarily involves three phases— connection, transport, and treatment.Under the proposed system, the municipalitiesand independent utility pro-

42 | PUBLIC SERVICESBefore Katrinano singlepublic safetyradio systemserved theentire region.viders would remain responsible for the“connect” phase. The regional authoritywould be responsible for transport andtreatment. In order to implement thissystem, the regional authority should befurther authorized to:■ pass ordinances in the counties andcities imposing fees and requirementsfor transport lines;■ enter into service agreements withmunicipalities, counties, rural waterassociations, and independent providers;■ meter the amount of sewage transportedto centralized or acquiredfacilities;■ review and approve water and sewerconnections in addition to the approvalsrequired by the Departmentof Environmental Quality and theDepartment of Health; and■ charge a monthly fee based uponan estimate of the amount of wastetreated annually.The municipalities and independentutilities will maintain authority overconnections in their service areas andmay charge a premium in addition tothe treatment charges of the regionalauthority. These customers of the regionalutility would remain responsiblefor collecting treatment fees from theirresidents.Congress recently appropriated $45million to the Rural Community AdvancementProgram to help communitiesreestablish water, waste disposal, andwaste water facilities. Additional fundingassistance may be obtained from theUSDA. The USDA’s Water & Waste Waterprograms can provide assistance to apublic body, utility district or nonprofitwater association that is located in a ruralarea or an incorporated city/townwith a population of less than 10,000.Eligible loan/grant proposals includethe installation of new water and wastewatersystems, repairs, or additions toexisting systems.Standardized EmergencyCommunicationsBefore Katrina, no single local publicsafety radio system served the entireregion. Each of the six coastal countiesmaintained its own radio system. Severalcoastal municipalities had their ownsystem. Each system’s coverage area waslimited to its jurisdiction or slightly beyond.Also, because the various state agencysystems have different manufacturers,different technologies, and different frequencies,they are not easily interoperablewith each other, and no statewidemechanism provides interoperabilityamong those first responders (ambulances,fire, police and medical) and stateagencies. For example, prior to and in theimmediate aftermath of Katrina, mostfirst responders from the Mississippi Departmentof Transportation (MDOT),the Department of Public Safety (PublicSafety), and the National Guard couldnot talk directly to each other or directlyto first responders on local coastal systems,except for limited communicationswith Harrison County.The same problem existed betweenfederal and state agencies. The U.S.Coast Guard, the military, and FEMA,for instance, could not talk directly tofirst responders from local and stateagencies. The situation was worsenedby the failure of local communicationssystems that were damaged or destroyedby wind or water. 3First responders on all levels – local,state, and federal – were resourceful andpersistent. They found ways to communicateunder difficult circumstanc-

THE GOVERNOR’S COMMISSION REPORT | 43es – often simply exchanging radios.Wireless vendors sent thousands of additionalradios to the affected area. BeforeKatrina, the Harrison County systemmanaged 3,027 radios. Within twoweeks, over 800 additional radios hadbeen distributed to local, state, out-ofstate,and federal emergency personnel,who used the Harrison County systemas a de facto strategic communicationscenter.In other coastal areas in the first daysafter Katrina, however, local law enforcementand first responders couldnot communicate effectively, if at all,within their own jurisdictions, andcertainly not with other jurisdictions.Where the local radio system went offline,first responders could operate onlywithin visual limits, with no coordinatedallocation of assets within the jurisdictionand no communications outsidetheir jurisdiction.Mutual aid and common channel useamong jurisdictions, when and whereavailable, quickly became overloaded.Even in Harrison County, where thelocal system continued to operate, connectivityto the outside was limited initiallyto satellite phones.As the scope of the destruction andneed for massive outside help becameclear, there were few links between localresponders and responding state agencies,such as Public Safety, MDOT, andthe National Guard, and those agenciescould not talk effectively to each otheror to responding federal agencies. As aresult, the ability of state and federal disasterrelief agencies to immediately assessdamages and plan a coordinated responsewas severely limited. In effect, the humancommunications disaster compoundedthe impact of the natural disaster.Local governments must work withthe Mississippi Wireless CommunicationCommission. Before Katrina, the2005 Mississippi Legislature created theMississippi Wireless CommunicationCommission to implement “a statewidewireless communications system” and“enable interoperability between variouswireless communications technologies.”4 So, when seeking improvementsand replacements to the emergencycommunications systems within SouthMississippi, local governments mustwork with the Wireless Commission asit seeks to develop a statewide systemand improve interoperability.The Wireless Commission should issuea request for proposals to develop astatewide wireless communication system.The cost of a comprehensive statewidewireless communications systemis impossible to predict and will dependlargely on the technical requirements ofthe RFP. A 2003 report by RCC Consultants,Inc., however, predicted thecost could be as high as $262.5 million. 5It is possible to pay for much of this byallowing private carriers to resell partof the state radio spectrum in returnfor installing the state’s wireless system.Based on the experience of other states,funding options include federal grants,user fees, and state bonds.The Commission recommends thatthe Wireless Commission and the RFPaddress the following issues.Local Option. Local governmentsshould be able choose their own systemand vendors so long as the systemand equipment are compatible with thestate’s interoperability plan, as discussedbelow. If the state builds a statewide system,local governments should have theoption to join the state system, subjectto full disclosure of initial and ongoingcapital and maintenance costs, governanceand control issues, present andpast technology requirements, and local

44 | PUBLIC SERVICEScoverage capabilities. If local governmentsdecline to join the state system,the state system should provide interoperabilitybetween those local governmentsand the state system, as describedbelow.Interoperability. Based on lessonslearned from Katrina, immediate voiceand data communications among firstresponders (local, state and federal) mustbe coordinated, even if they are outsidethe normal system coverage or jurisdictionof the lead agency responding tothe incident. Coastal interoperabilityshould also address the need to communicatewith first responders and appropriatestate and federal agencies inadjacent states.Survivability. The Commission recommendsthat the Wireless Commissiondevelop survivability standards fordesign and construction of new andreplacement wireless communicationsequipment and systems, and enforcethose standards to local governments;otherwise, funds may be spent on systemsat risk for future failure.Priority for Coastal Wireless CommunicationSystem. The Commissionrecommends that if the WirelessCommission contracts for design andconstruction of a statewide wirelesscommunications system, the area mostseverely affected by Hurricane Katrinashould be the first area placed in fulloperation, especially with respect toimprovements to interoperability.Emergency provisions. This Commissionrecommends that the WirelessCommission include in the RFP a requirementfor portable wireless units,towers and other infrastructure to bedeployable as needed in the event ofanother disaster.Emergency plans and agreements. TheWireless Commission should take thelead in development and implementationof a plan to coordinate public andprivate communications resources andassets during major natural disasters andemergencies. The Wireless Commissionshould also encourage mutual aid pactsbetween local governments with similarsystems and between local governments

THE GOVERNOR’S COMMISSION REPORT | 45and nearby state agency facilities. TheWireless Commission also should determineif a commercial network that ishighly survivable and covers the Coastcould be used as a redundant backupsystem, similar to the system used byHarrison County and Mississippi PowerCompany.Funding. Recognizing the severeimpact of Katrina on Coastal governments’revenue and expenses, the WirelessCommission, the Governor’s Office,the state legislature, and all otherrelevant public officials and agenciesshould avoid placing the cost of thesemeasures on local governments. In mostsituations, FEMA will pay for replacementequipment, but other sources offunding will be necessary for a statewidesystem and for improvements tointeroperability as recommended by theCommission. Federal funds should beaccessed to the fullest extent possible,including both traditional Departmentof Homeland Security and law enforcementgrants and supplemental appropriations.A competitive procurementprocess should maximize cost savingsand technology innovations. The processalso should look at the possibility ofreselling part of the spectrum for areawidedigital broadband services such asin Philadelphia, Pa.Needs and cost assessment. Before issuingthe RFP, the Wireless Commissionshould update the RCC report 6regarding current state agency communicationsassets, needs, costs, andprojected expenditures. The WirelessCommission should accomplish a similarassessment for local governments,especially those in the area impacted byKatrina. Without such information, it isnot possible to ensure that actual stateand local needs will be addressed, or tocalculate net costs and/or savings fromimplementing a statewide system.Regional DisasterPreparednessThe Commission recommends thatevacuation maps be prepared for thesouthern six-county region. HurricaneKatrina proved that hurricane damageand risks are not confined to coastalcounties. Rather, the extent of Katrina’sdamage covered an area from the GulfCoast to over 150 miles north. Newplans must consider the evacuationof more people than just those in thethree southern counties. Routes alsoshould identify designated evacuationcenters to organize the movement andtemporary relocation of communities.The Corps of Engineers should workwith counties and the Gulf RegionalPlanning Commission to prepare thesemaps.The Commission also recommendsthat the Mississippi Civil Defense andEmergency Management Association(MCDEMA) be funded to provide aformal regional disaster plan for thesix counties or for all counties on a basisrepresentative of their proportionalrisks and needs. A comprehensive planshould clarify the roles of federal, state,and local authorities to provide a morecoordinated response to disaster andemergency situations and optimizethe operations and/or contributions ofnonprofit organizations and third partyproviders of utilities, debris removal,food, and water. The following issuesshould be included in the statewide disasterplan:■ dissemination of disaster preparednessmaterials and checklists to citizens;■ dissemination of maps establishingclear and adequate evacuationroutes;■ clear designation of temporary localhousing facilities;■ identification of specific cities orcounties for temporary housing byevacuees;■ plans for collection of food, water,and human necessities;■ plans for the quick restoration ofbasic public services;■ coordination and use of stagingareas by government agencies andutilities;■ contracts for debris removal and salvageoperations;■ ensuring that emergency responseprofessionals are prepared, equipped,and trained;■ education of senior citizens, peoplewith disabilities, and/or specialneeds groups with the skills andknowledge they will need to preparefor, respond to, and recoverfrom emergency situations;■ training in flood-fighting techniquesusing sandbags and othermaterials;■ response of non-affected areas toaid and support affected areas; and■ a clearinghouse agency with aworking knowledge of federal andstate funding mechanisms for disasterrelief.Additionally, the state legislatureshould fund MCDEMA to constructa storm-worthy operations center. Thiscenter would be the control center fordisaster response efforts following astorm, hurricane, or disaster.The Commission further recommendsthat an ad hoc task force be createdby the governor that requires participationby entities providing statewidedisaster planning services. These agenciesshould include FEMA, MEMA, theHighway Patrol, and the Department ofTransportation, and the Department of

46 | PUBLIC SERVICESThe methods by which anindividual government canspend its tax dollars moreeffectively by working with otherlevels of government arelimitless.Health. It should also include utilities,nonprofit, and faith based organizations.This task force should be mandatedto prepare a disaster readiness plan byJune 1, 2006, prior to the 2006 hurricaneseason. Additionally, the task forceshould address communications issuesas outlined above.Consolidation for Schools,Law Enforcement, and FireDepartmentsNot only have school districts, lawenforcement agencies, and fire departmentssustained heavy facility and equipmentlosses, they also are vulnerable tothe decimation of local and regional taxbases. Certain schools, law enforcementagencies and fire departments, particularlythose in Hancock County, may notbe able to resume operations or only ona very limited basis.The need to consider the consolidationof school districts, law enforcement,and fire department consolidationhas never been more apparentthan now. The focus should be moreon consolidating facilities, equipment,funding, training, and manpower thanon reducing costs, since cost reductionshave already been imposed by Katrina.The Commission notes with interestsuch dialogue between Waveland andBay St. Louis.The Commission recommends thatthe state retain qualified and experiencedconsultants to study the schooldistricts, law enforcement agencies, andfire departments in the six southerncounties. The study may be funded bylocal planning and development districtsand/or the state and should makerecommendations as to the feasibilityand effects of consolidation of services.Updating Geographic InformationSystems (GIS)There are several different state andlocal governments currently gatheringand maintaining maps and database informationfor Geographic InformationSystems. (For a complete survey of currentGIS capabilities, see the full subcommitteereport at www.governorscommission.com)As a result of HurricaneKatrina, however, many streets, roadsand other geographic benchmarks havebeen damaged or destroyed. GIS informationlikely must be reevaluated forboth horizontal and vertical accuracies.Additionally, the systems maintained bystate and local governments are not alwayscompatible.The Commission recommends that aGIS task force, composed of membersof the appropriate government agencies,be created to undertake the fol-

THE GOVERNOR’S COMMISSION REPORT | 47lowing objectives:■ Evaluate the current sources of regionalGIS information and platforms.■ Assimilate and establish a central repositoryfor base map and databaseinformation for the entire state ona platform that is consistent withexisting information. Through thework of the Coordinating Council,the Mississippi Department ofInformation Technology Services(ITS) has received $1 million toestablish such an infrastructure. TheRFP(s) to configure, acquire andset-up this statewide effort will beout by early 2006.■ Create a web-based base map anddatabase that includes the followingdata which should be accessible bythe public to aid in the rebuildingand development effort: roads andstreets; water and sewer lines; zoning;proposed zoning amendmentssuch as the SmartCode; aerial andsatellite imagery; flood zone datafor pre-Hurricane Katrina; andflood zone data for post-HurricaneKatrina. A site exists at the GeospatialOne Stop 7 with many of thesecapabilities. The new clearinghouseeffort led by ITS will have these capabilities.■ Initiate collaborative efforts withadjacent regions in Alabama, Louisiana,and north of the six-countyarea.A Public Services CooperativeAs a result of the destruction of HurricaneKatrina the local governments ofSouth Mississippi are faced with dauntingresponsibilities, including removaland hauling of debris; restoring infrastructuresuch as water, sewer and communications;providing housing to displacedresidents; and coordinating andoverseeing rebuilding efforts throughinspection and permitting.To make matters worse, most localgovernments will not have enough incometo support these efforts as salestax revenues have plummeted and advalorem tax revenues are projected todo the same. A regional cooperative canprovide an expanded set of services tothe areas most devastated by HurricaneKatrina. The Commission recommendsthat a six-county public services cooperativebe created to purchase commonitems, train personnel, and performmaintenance of facilities. Obviously,this regional approach could be used byother areas of the state.Centralizing procurement will allowservices to be offered more competitivelyand will result in more consistentpricing across the region. Significantcost savings can be realized in the areasof training and maintenance by allowingall counties and cities to draw froma larger pool of resources and funding.To establish a cooperative, the Commissionrecommends that each countyand city prepare a report detailing staffand personnel losses, the public serviceswhich it will be unable to supply duringthe rebuilding effort, estimated fundingshortfalls for its programs and services,and any other areas of assistance. Additionally,the governor should create atask force to assist with the preparationof these reports, to evaluate the feasibilityof providing such services on aregional basis, and to evaluate the costsavings which could be associated withcentralized procurement of equipmentand supplies. The task force should furtherevaluate funding and personnel resourcesthat can be utilized and sharedacross the region during the rebuildingeffort.The task force should prepare a finalreport outlining its findings andpropose a plan to implement sharedservices across the region. Based uponthe recommendations of the task force,the governor should create a temporaryagency which will be responsible forimplementing the findings and recommendations.

48 | AFFORDABLE HOUSINGAFORDABLEHOUSINGIn Mississippi, more than134,000 homes received damageas a result of HurricaneKatrina. At least 65,000 werecompletely destroyed. Morethan 50,000 received flood damage, and35,000 of those homeowners had noflood insurance.While the hurricane’s winds and watersaffected everyone in its path, somewere affected more dramatically thanothers.The role of personal assets in enablingpeople to survive and recover isimportant, and the presence or absenceof assets, and insurance on those assets,will determine who can participate inthe long-term rebuilding of South Mississippi.For that reason, strategies for renewalmust closely consider approaches thatpromote asset-building among lowwealthfamilies and communities. Financialeducation, savings tools, and accessto non-predatory financial serviceswould help mitigate the challenges thatconfront many residents. As home ownershipis one of the primary means inwhich individuals build wealth, it is importantto target policies and fundingstreams that help low-income residentsbuy their own homes, repair them, andretain them when faced with incomedisruptions from crises such as nationaldisasters.To understand the need for such initiativeson behalf of low-wealth citizens,officials must consider the breadth anddepth of the challenges they face. Table1 highlights key socio-economic demographicsfor Mississippi as comparedto the rest of the nation.

THE GOVERNOR’S COMMISSION REPORT | 49

50 | AFFORDABLE HOUSINGTable 1, below, illustrates two aspectsof poverty – a lack of income and alack of assets. For example, in Laurel,the Median Family Income (MFI) wasmore than $7,000, or 19 percent lessthan the MFI across the entire state ofMississippi. Likewise, in Gulfport, theMFI was more than $10,000, or 20 percentless than the MFI for the UnitedStates. Not surprisingly, the povertyrates for both locales also were significantlyhigher than the poverty rate forthe country.Income levels are reflective of theabundance of low-wage work in bothareas. More than 42 percent of all workingfamilies in Mississippi are low-income– the highest rate in the nation.Over a third of the jobs in Mississippipay below-poverty wages. 1The prevalence of low-wage workis partially explained by the rise of thehospitality industry. The total number ofhotel jobs tripled in Mississippi duringthe 1990s – the second highest growthrate in the nation; however, industrygrowth did not translate into high-wagejobs. On average, hotel workers in Mississippiearned $20,190 a year. 2The second aspect of poverty illustratedin Table 1 is a lack of assets. Accordingto the Joint Center for HousingStudies at Harvard University, “Homeequity is the cornerstone of householdwealth for most Americans,” 3 yet therates of home ownership and homevalues in these Mississippi cities trailedthe rates and values for the rest of thenation. Many residents in South Mississippipossessed limited assets on the eveof the hurricane.Regardless of race or class, the presenceor absence of assets and insurancewill play a significant role in determiningwho participates in the long-termrebuilding of Mississippi. Over 90 percentof the homes in Harrison County(Biloxi and Gulfport) did not have floodinsurance. 4 Homeowners without significantassets and flood insurance face ahuge affordability gap between coveringexisting mortgage payments and payingto rebuild. As mortgage grace periodsexpire, those without reserves or pendinginsurance payments risk foreclosureand the disappearance of their equity.Even those who may not face foreclosurehave already experienced the lossof their only major asset, and likely allor most of the equity they may havespent years building up.In the short term, limited housingstock spared from the hurricane has experiencedrapid price appreciation andis unaffordable for most residents. Manypeople without insurance will also facechallenges paying a mortgage and coveringthe high cost of rebuilding. Thosewho experience mortgage defaults willbe unable to obtain financing for anotherhome loan even if they possesseda strong credit record before the hurricane.The inability to obtain a mortgagethen will hamper their long-termprospects for building assets throughhome equity. Simultaneously, given thehigh cost of housing, foreclosed propertiesrepresent an opportunity for widespreadgentrification across the regionif developers acquire the properties atlow prices.How will the poor and uninsured affordto return to their homes? Who willhelp people without insurance bridgethe affordability gap – especially whenmost sources of capital are risk averse,and government aid programs are slowto move? How will renters who havelost all of their possessions rebuild theirlives? In order to create a more equitableregion, rebuilding strategies mustanswer these questions and providepeople with the tools necessary to acquireand preserve assets.Katrina wrought widespread and unprecedenteddestruction in MississippiTABLE 1 Source: U.S. Census 2000

THE GOVERNOR’S COMMISSION REPORT | 51and Louisiana, having a particularly devastatingimpact on low-wealth residentswho lacked an economic safety net.At the same time, the hurricane presenteda unique opportunity to correctdecades of inequitable development.Affordable housing and home ownershipare cornerstones upon which theregion will rebuild for the long term.Investments in housing strategies thattarget low-wealth residents will helpSouth Mississippi emerge as a stronger,more equitable region.The Destruction –A CloserLookHurricane Katrina wrought damagethroughout many counties in Mississippi.Regrettably, most of the preliminarydata to assess post-hurricaneimpacts are currently available onlyfor the three coastal counties that sufferedmajor flood and surge damage. Assuch, the Governor’s Commission hasinitially conducted its pre- and post-Katrina housing analyses solely withinthe counties of Hancock, Harrison andJackson. It is anticipated that future follow-onanalyses will include all countiesaffected by the hurricane.Most of the residential and commercialdevelopment in the three coastalcounties occurred near the coastlinewhere Hurricane Katrina’s coastal surgeand flooding occurred, as indicated inFigure 1. As one would expect, populationand housing unit densities weregreatest in the cities, particularly in partsof Long Beach, Gulfport, and Biloxi (inHarrison County) as well as Pascagoulaand Moss Point (in Jackson County), asshown in Figure 2.About two-thirds of the housing unitsin those counties were occupied byhouseholds with income below the U.S.median level (approximately $42,000 asof the year 2000). In Hancock and HarrisonCounties alone, almost 75 percentof the housing units were occupied byhouseholds living below the U.S. medianincome level. Across all three counties,about 12 percent of households

52 | AFFORDABLE HOUSINGlived below 150 percent of the federalpoverty level (FPL) and thus were eligiblefor various federal assistance programs.For a four-person household inthe year 2000, this would correspond toan annual income of less than $25,575(in 2005, the income for a family offour at 150 percent FPL is $29,000 peryear).In Harrison County, the proportionof housing units occupied by householdsliving below 150 percent FPLwas 14 percent. The spatial distributionof these low income households can beseen in Figure 3.Across the three counties, 62 percentof the housing units were owner-occupied,with overall home-ownership inHarrison County slightly lower at 56percent (see Table 2). Figure 4, however,shows that the lowest home-ownershiprates – less than 42 percent – occurredin coastal communities of HarrisonCounty, namely Gulfport and Biloxi(Figure 4).The majority (62 percent) of housingunits across the three county area wasbuilt before 1980 (Table 2). As Figure 5shows, the greatest shares of these oldervintage homes were located in Gulfport,Biloxi, and Pascagoula.Based on this information, it wouldappear that Gulfport and Biloxi andPascagoula and Moss Point present thegreatest challenges for rebuilding.First, these areas contained a largerpercentage of older homes that wereprobably not designed to modern codes,and thus more likely to suffer wind-and water-related damage during severeweather.Second, these cities contained a largerpercentage of lower-income householdswith limited ability to invest in the rebuildingefforts themselves, and private,for-profit landlords may see little incentiveto reinvesting in the areas.A preliminary estimate of the damageresulting from Hurricane Katrina canbe derived from information regardinghousing units that were exposed to thestorm surge and potential flooding. The

THE GOVERNOR’S COMMISSION REPORT | 53pre-Katrina Flood Insurance Rate Map(FIRM) designations are helpful inconsidering this issue. Areas within theFIRM are deemed prone to flooding,and thus households within the FIRMwere more likely to have had flood insurancethan those in other areas. Theother option for evaluating damageexposure is from the Surge InundationLimits (SIL). The SIL data were modeledby FEMA based upon field measuresof post-Katrina High Water Marks(HWM) and recent Light Detectingand Ranging (LIDAR) surveys. Table2, shown previously, provides estimateson the number of housing units withineither SIL or FIRM bounded areas;these represent a rough estimate on thenumber of housing units exposed to eithersurge or flooding conditions in thethree coastal county area.As shown in Table 2, more than40,000 housing units across the threecountyarea fell within the FIRM area,and, therefore, faced a higher likelihoodof damage from flooding. In these samethree counties, more than 75,000 housingunits were within the SIL area andfaced potential damage from stormsurge. What these numbers indicate isthat between 25 and 50 percent of allhousing units in the three-county areafaced likely damage by flooding, bystorm surge, or by both. These roughestimates, however, almost are certainlylower than the actual number of homesdamaged or destroyed. First, the calculationsdo not consider wind damage,which could occur in areas not affectedby flooding or storm surge. Second, thehousing numbers are now five years oldand do not include new homes built inthe region since 2000.Tying together the questions of demographicsand damages across thethree counties, the data in Table 2 showTable 2: Three-County Housing Assessment.Figure 5: Surge inundation limit and 100-year fl ood extent overlay onpercent of housing units built before 1980 in coastal areas.

54 | AFFORDABLE HOUSINGthat about 65 percent of the housingunits exposed to the surge and over 57percent of the units exposed to floodingwere occupied by households withincomes below the U.S. median householdincome level. In Harrison County,Table 3: Biloxi Peninsula Damage Estimatesaround 17 percent of the units exposedto surge were occupied by householdsbelow 150 percent of the FPL.Generally, the number of owneroccupiedunits throughout HarrisonCounty exposed to the surge or toflooding was about two to three timeslarger than the number of rental unitswith similar exposure, and about threeto four times the number of vacantunits with similar exposure.In the three-county area, about onethirdof the housing units exposed tothe surge were also built before 1980;in Hancock and Jackson Counties, thisestimate increases to over 40 percent.Level of Damage Estimates forBiloxi: A Sample Case StudyTo develop a more accurate assessmentof actual hurricane damages, asopposed to the estimates of exposureto the surge and to flooding describedabove, more rigorous and detailedanalyses are necessary. The following isan illustration, one that focuses on thepeninsular tip of Biloxi, to show how amore detailed analysis could be structured.Figure 6 illustrates the damage causedwithin this section of Biloxi, and datafrom the analysis are presented in Table3. In a sample of 6,404 housing units,almost all were occupied by householdsliving below the U.S. median incomelevel, and 80 percent of these experiencedextensive or catastrophic damage.At an even lower income cutoff, 40 percentof the households in this samplearea lived below 150 percent FPL andexperienced extensive to catastrophicdamage. Less than 40 percent of housingunits in this area were owner-occupied,and the vast majority of the remainderwas extensively or catastrophically damaged.Ninety percent of housing unitsin this area were built before 1980; pre-1980 vintage homes that were extensivelyor catastrophically damaged represented73 percent of all homes in thearea.

THE GOVERNOR’S COMMISSION REPORT | 55Meeting the ChallengesTackling the post-Katrina housingneeds of Mississippi poses an array ofdaunting tasks. First, there must be anadequate supply of housing to satisfythe needs of former residents and businessemployees seeking to rebuild in thearea. Of equal importance, a significantportion of the supply must be affordableto lower-income groups, and thecalculation of affordability should takeinto consideration the life-cycle costs ofhome ownership. This implies that thenew housing should be as efficient aspossible with respect to energy and waterconsumption along with durability.Drawing upon research efforts, communityoutreach, and input from otherinterested parties and stakeholder groups,the Governor’s Commission has identifieda range of recommended actionsthat appear to offer the most promisein meeting the housing challenges outlinedabove. These may be divided intofour categories: (a) near-term analyticalefforts and pilot studies; (b) institutionalmechanisms; (c) financial mechanisms;and (d) coordinated planning and financestrategies.Near-Term AnalysesRegardless ofrace or class,the presenceor absence ofassets andinsurancewill play asignificantrole indeterminingwho participatesin thelong-termrebuilding ofMississippi.Recommendation 1: Housing NeedsAssessment. A detailed housing needsassessment should be conducted on acounty-by-county and community-bycommunitybasis that considers factorssuch as: prior housing stock (vintage,value, etc.); residential demographics(income levels, owners vs. renters, etc.);the extent of hurricane-related damagesand costs to rebuild; characterization ofthe displaced population (including priorinsurance coverage and the ability topay for rebuilding); and estimated employmentrequirements. This informationshould be correlated with financialdata, planned infrastructure projects, casemanagement information, and environmentalconcerns to help guide state andfederal funding efforts to where theyare most needed. The state governmentshould coordinate funding and overseethe independent assessment of housingneeds, which should in turn be coordinatedwith all other data collection andanalysis efforts. The need for this informationis urgent, and the analysis shouldbe initiated as soon as possible. Draftresults could be available within threemonths, with a full report completedwithin six months. Funding may comefrom a combination of private and publicsources, including philanthropic organizations,and perhaps federal sourcessuch as United States Geological Surveyand FEMA. The expected cost wouldbe around $1 million, considering thatmuch of the needed data must be collectedon a community-by-communitybasis, often through surveys.Recommendation 2: Best PracticesAssessment. This study should assessbuilding technologies, model codes,and zoning ordinances, and managementpractices that could be appliedon the Coast. Tasks to be addressedwithin the scope of the study would include:evaluating the costs and benefitsof technologies for meeting wind andflood resistance; evaluating the costs andbenefits of technologies for reducingmaintenance and using water and energymore efficiently; performing a scanof the best code, zoning, and inspectionmanagement practices across the country;and identifying ways to transfer thisknowledge to Coast communities. Casestudies in which improved constructioncodes led to demonstrably betteroutcomes during Katrina, such as withthe Hope VI project in Biloxi, would

56 | AFFORDABLE HOUSINGbe helpful. The state should coordinatefunding and oversee the independentassessment of housing needs, whichshould in turn be coordinated with allother data collection and analysis efforts.This should be initiated as soon as possibleand could be completed within sixmonths. Funding may be available froma combination of private and publicsources, including philanthropic organizationsas well as federal sources suchas HUD’s Partnership for AdvancingTechnologies in Housing, the Buildingand Fire Research Program in the NationalInstitute of Standards and Technology,and the Department of Energy’sBuilding American Program. Cost likelywould be around $500,000.Recommendation 3: Barriers Assessment.This study would analyze, at adetailed level, existing code and zoningprovisions within individual countiesand cities in the affected region in orderto identify potential barriers to thecreation of a sufficient supply of safe, efficient,and affordable housing. Specificfindings could indicate a need for legislativeaction at the state level, such as, forexample, requiring all counties and municipalitiesto embed certain provisionswithin their zoning ordinances. Stategovernment should coordinate fundingand oversee the independent assessmentof housing needs, which then shouldbe coordinated with all other data collectionand analysis efforts. Private andpublic sources, including philanthropicorganizations and federal sources suchas HUD’s Partnership for AdvancingTechnologies in Housing shouldfund this assessment at a likely cost of$500,000.Pilot EffortsMany participants in the Commission’sdiscussions on housing urged thatQ:How will the poor anduninsured afford to returnto their homes? Who willhelp people withoutinsurance bridge theaffordability gap—especially when mostsources of capital are riskaverse, and governmentaid programs are slow tomove? How will renterswho have lost all of theirpossessions rebuild theirlives?In order to create a moreequitable region, rebuildingstrategies must answerthese questions andprovide people with thetools necessary to acquireand preserve assets.progress be made swiftly. One way toachieve near-term success with new andinnovative ideas is to create pilot projectsto test ideas quickly, create familiaritywith different processes, and putplans to work more rapidly. Currently,the Enterprise Foundation is workingwith Enterprise Corporation of theDelta and NeighborWorks America tolaunch several pilot projects using privatefunding sources. Accordingly, theGovernor’s Commission recommends aseries of possible pilot efforts.Recommendation 4: Mixed-Use onHUD Site Pilot. A former HUD housingsite that was destroyed during thehurricane should be developed into anew high-density, mixed-use affordablehousing project. Rather than rebuildingonly HUD housing on thissite, public and private partners wouldjoin together to design and implementa mixed-use neighborhood. The pilotproject would combine best practicesfrom recent HUD projects along withrelevant Smart Growth or new urbanismelements. The HUD Hope VI programmay be an ideal candidate for sucha program. According to the MississippiHUD multi-family housing office, over3,000 subsidized rental units were damagedby Katrina. These rental units providedhousing for the poorest familieson the Coast, including elderly, disabled,and other renters on very small fixedincomes.Most of these units are ownedand managed by local housing authorities.The Waveland Housing Authority,for example, owned and managed 75units that were destroyed. These damagedunits must be rebuilt with a combinationof grant funds and loans madeto the local housing authority. To developlong-term solutions that will providethe local housing authority withsufficient funds to make improvements

THE GOVERNOR’S COMMISSION REPORT | 57and repairs to the properties and providehigh quality management of the properties,debt service of loans must be keptat minimal levels. A portion of CommunityDevelopment Block Grants(CDBG) or other grant funds should beset aside for use in rebuilding the localhousing authority structures.This pilot project would involve coordinationbetween HUD, the stategovernment, a local housing authority,one or more private developers, andone or more lending institutions. Thestate could work with HUD and localcommunities to identify a suitable projectlocation, and the Mississippi HomeCorporation could take a lead role inthe project. A site and private partnershould be identified as quickly as possibleand construction begun within sixmonths. Funding would be providedboth by HUD, for the affordable housingcomponent, and a private developerfor the other housing and other components,such as retail. HUD may providetechnical and analytical assistance.Overall project cost would depend onthe size and location selected.Recommendation 5: Financial IncentivesPilot. The Commission recommendsdevelopment of a small-scaleprogram to pilot some of the proposedfinancial mechanisms that provide incentivesto go beyond basic buildingcodes. The first step would be to developbuilding guidelines for safe, energyefficient, water-efficient, and durablehomes, and then to create a certificateprogram with three or four “quality ofconstruction” levels that exceed minimumcodes. The next step would be towork with communities and institutionsto create one or more small-scalepilot efforts – these might be located inspecially designated “innovative financezones.” It may be possible to identifyKatrina wrought widespreadand unprecedented destructionin Mississippiand Louisiana, havinga particularly devastatingimpact on low-wealthresidents who lacked aneconomic safety net. Atthe same time, the stormpresented a unique opportunityto correct decadesof inequitable development.Affordable housingand home ownership arecornerstones upon whichthe region will rebuild forthe long term. Investmentsin housing strategies thattarget low-wealth residentswill help South Mississippiemerge as a stronger,more equitable region.a neighborhood in which to developa pilot program combining lower insurancerates based on higher buildingsafety codes as well as lower mortgagerates based on location efficiency andresource efficiency.To implement this recommendation,the state government should askfor assistance from the Department ofEnergy’s (DOE) Building America Programand EPA’s Energy Star BuildingProgram to identify and fund an organizationto lead this pilot program. Thisorganization should develop the certificationprogram and work with a communityto begin the pilot program.A partner should be identified withinthree months and a program in placewithin six to nine months. Initial effortto set up the program would likely cost$250,000. In addition to EPA and theDOE, large insurance companies and/or Fannie Mae may also provide assistancewith this pilot.Recommendation 6: Modular-PermanentHousing Pilot on a Site CurrentlyBeing Used for Transitional Housing.This pilot involves the development ofmodular, permanent housing on a sitethat is currently being used for temporaryhousing. It serves two purposes, thefirst of which is to identify transitionalhousing sites that may be appropriatefor permanent affordable housing.Given that money is being spent tolay infrastructure in these transitionalsites, it seems wasteful to just remove itwhen the transitional housing is no longerneeded. Along these lines, the pilotwould be used to help identify appropriatecriteria for identifying candidatesites and develop processes for makingthe transition from temporary to permanenthousing, with set-asides for affordablehousing. The other purpose ofthe pilot would be to show how modu-

58 | AFFORDABLE HOUSING[I]t would appear that Gulfportand Biloxi (in Harrison County) and Pascagoula and Moss Point(in Jackson County) present the greatest challenges for rebuilding.First, these areas contained a larger percentage of olderhomes that were probably not designed to modern codes, andthus more likely to suffer wind- and water-related damageduring severe weather. Second, these cities contained a largerpercentage of lower-income households with limited ability toinvest in the rebuilding efforts themselves, and private, for-profitlandlords may see little incentive to reinvesting in the areas.While FEMA may be able to provideinitial assistance, the state should approacha consortium of modular housingdevelopers to participate in this pilotproject. The developers will recouptheir investment when the homes aresold and may also view this as a valuablemarketing opportunity to expandtheir prospects throughout the rest ofthe state.Building and Zoning Codeslar housing technologies can be usedto develop affordable, attractive, and efficienthousing. Because this approachis relatively novel, many residents andcommunity leaders may fear that modularhousing would look cheap and undesirable.To ease these fears, this pilotwould allow modular home developersto compete for the chance to designand build homes within a mixed-use,affordable housing development thatwould showcase the quality that canbe achieved in modular technology. Ifthe pilot is successful and the resultinghomes are both attractive and affordable,different communities along theCoast may feel more comfortable inadopting codes that allow for modularhousing technologies, and more sitescan be transitioned from temporary topermanent housing developments.The state government should workwith FEMA to identify the criteria andprocess for transitioning the sites fromtemporary to permanent housing. TheMississippi Home Corporation maytake the lead on this project. Modularhome builders will also be involved inthe design and building phases. Criteriaand site identification should happenwithin three months, and the designcompetition should take place withinsix months. Construction can beginsoon thereafter.While Hurricane Katrina struck withdevastating power, it appears that substandardbuilding codes and questionablezoning practices in certain areasexacerbated the destruction. Prior torebuilding, it is essential to address thesegaps – now apparent in hindsight – tominimize the damage that may resultfrom any future severe weather event tostrike South Mississippi.Recommendation 7: Stringent TemporaryCodes. It will take some time forcities and counties to evaluate and approvenew building codes, as well as forFEMA to create its new FIRMs. Untilthis process is completed, the Governor’sCommission recommends thatcities and counties adopt – and grantexpedited permits under – temporarycodes that combine FEMA’s advisoryflood map elevation advisories withFlorida’s stringent coastal hurricaneresistance building standards. If homeownersor developers meet these strictinterim codes, they can rebuild quickly.Any buildings constructed accordingto these interim standards would begrandfathered into any longer-termcode programs. This recommendationmust be implemented at the city andcounty level; however, the state couldpotentially “encourage” local governmentsto adopt this approach by withholdingcertain recovery aid from any

THE GOVERNOR’S COMMISSION REPORT | 59Illustration: Eric MoserIllustration: Lew Oliver

60 | AFFORDABLE HOUSINGcities or counties that do not follow therecommendation. Guidance on adoptionof temporary housing codes maybe provided by HUD’s Partnership forAdvanced Technologies in Housing(PATH) program. The temporary codesshould be established immediately andremain in place only until FEMA hasreleased the new FIRMs and cities andcounties have officially adopted longertermcode revisions, which could occurover a 12 to 18 month timeframe.The financial resources for local governmentsto adopt this recommendationare minimal, consisting mostly ofsome additional administrative efforton the part of cities, counties, and thestate. Recommendation No. 32 providesother sources of funding that mayapply here.Recommendation 8: Minimum Long-Term Safety Codes. Over the longerterm, cities and counties should establishstringent minimum building safetycodes based on the latest InternationalBuilding Code (IBC) and InternationalResidential Code (IRC) as well as hurricaneand flood resistance codes. Thiscan certainly be achieved at the cityand county level. To ensure conformity,however, an option exists to establishand enforce this at the state levelthrough legislative action. Assumingthat cities and counties adopt conservativetemporary building codes overthe short term, these permanent codechanges can be adopted over a longertimeframe. Administrative costs of updatingthese codes will be relatively insignificant,but development costs willincrease. Over the short term, thesehigher development expenses shouldbe at least partially mitigated by lowerinsurance premiums. They also will resultin a considerable reduction in damagesfrom the next hurricane that hitsthe Coast.Recommendation 9: Modular HousingCodes. New modular and panelizedhousing technologies can be used tocreate homes that are attractive, safe, andaffordable. To leverage these potentialadvantages, cities, and counties shouldconsider reviewing their building codesto make sure these technologies arepermissible within their jurisdictions.It also may be appropriate to reducepermitting and inspection fees for suchhousing, since the burden on inspectorsshould be substantially less. Notethat this may present an opportunity foreconomic development, since modularhousing factories could be created inany community that requires significantlevels of rebuilding. Cities and countiesshould be responsible for this action.State level entities, including eventuallythe “New Statewide Community DevelopmentEntity” as described below,or nonprofit organizations concernedwith affordable and efficient housing,may be able to provide assistance withsample code structures that serve thisend.Implementation should occur in thenear term, ideally within three to sixmonths, such that developers can considermodular housing among the possibleoptions as they begin to rebuild.This recommendation will result insmall administrative costs on the part ofcities and counties as they take time toresearch and update their codes. At leasttwo modular housing pilot projects areunderway in Gulfport for at least 70housing units.Recommendation 10: Dense, Mixed-Use Zoning. Where it is desirable tocreate vibrant neighborhoods, to supportaffordable housing goals, and to coordinatewith planned development ofincreased transit options, communitiesmust ensure that their zoning codes allowfor dense, mixed-use development,including ample multi-family housing.This may require significant rezoningin some cases. Affordable rental housingrequires that apartment complexesof significant size be part of the supplymix. Communities must consider highquality,affordable rental housing developmentsas not every family can be ahomeowner and not all rental needs canbe met by scattered-site single familyresidences. NIMBY (Not in My BackYard) attitudes have, at times, made itimpossible for developers to obtain approvalsor pushed them to use land lesssuitable for residential housing becauseof preconceptions residents may haveabout rental housing. Considering themagnitude of the housing problem,however, affordable apartments must bea part of the solution. Further, multifamilyhousing is an essential part ofthe concepts of walkable communities,which must be a part of the rebuildingprocess.Cities and counties should be responsiblefor this action. State agencies, alongwith various nonprofit organizations,should be able to provide appropriatezoning guidelines. While this goal maytake time to coordinate, it should occuras quickly as possible; ideally withinsix months so developers can followthe new guidelines as they rebuild. Thisrecommendation would result in smalladministrative costs to cities and countiesas they take time to research andupdate their zoning plans and may becovered by the funding sources identifiedin Recommendation No. 32.Recommendation 11: Preventing InappropriateZoning. Airports, shippingports, and other heavy industrial sitesmay generate numerous negative externalitiessuch as noise and air pollution

THE GOVERNOR’S COMMISSION REPORT | 61Illustration: R. John AndersonIllustration: Eric MoserIllustration: Michael G. Imber

62 | AFFORDABLE HOUSINGand heavy truck traffic. As a result, landvalues surrounding such areas may beless than in other areas. Any reductionin land rents, however, should not beused as an opportunity to create moreaffordable housing. Simply stated, thenoise and air pollution would be harmfulto nearby residents, especially children.Moreover, experience from otherareas in the country demonstrates thatresidents living near such facilities areoften able to organize effectively againstfuture facility expansion. Given thislose-lose relationship, areas near theseindustries should be strictly zonedsolely for compatible industrial or commercialpurposes. While this must beimplemented at the local governmentlevel, it is important that the state considerenforcing the recommendationthrough appropriate legislation. Implementationshould occur simultaneouslywith plans to expand these industries.This recommendation would result insmall administrative costs to cities andcounties or to the state.Planning Strategies forAffordable HousingMany of the residents in South Mis-sissippi are from lower-income groups,and many of the traditional jobs availablein the area pay comparatively lowwages. For these reasons, it is importantto ensure the availability of a sufficientsupply of affordable housing. To the extentthat new investment in the regionduring the rebuilding process results inincreased land values, this task will becomeeven more challenging. As such,the Governor’s Commission recommendsseveral strategies to ensure thatenough affordable housing options areavailable to support the area’s residentsand employment base, and that theseunits remain affordable in future years.Recommendation 12: Permanent Af-fordability Goals.Local governmentsshould be required to set and maintainpermanent affordable housing goals. Toenforce compliance, state, or federal redevelopmentfunds could be withheldfrom those communities that have notdeveloped a plan indicating how suchgoals will be achieved. Specific affordabilitygoals for each community wouldbe determined through the in-depthhousing and business needs assessmentas discussed above in the section on“Housing Needs Assessment.” Whilelocal communities will be responsiblefor developing plans to meet their affordabilitygoals, the oversight for such aprogram, including the use of financialincentives to encourage compliance,must occur at the state level. This recommendationshould be implementedover the near term, within three tonine months, so that local communitiescan develop appropriate strategiesas rebuilding commences. Ensuring anadequate supply of quality affordablehousing will entail a high price tag, butin practice the costs will likely be spreadout across numerous entities, includinglocal governments, the state, the federalgovernment, and nonprofit donors.Some of these would include MississippiHome Corporation, MississippiDevelopment Authority, HUD, and theRural Development Authority.Recommendation 13: Developer Af-fordability Requirements.Developersof certain projects, as part of the permittingprocess, should be required todevelop a minimum percentage of affordablehousing. As an alternative toproviding affordable housing within aspecific project, developers could alsobe granted the option of paying “inlieu” fees that would be contributedto the community’s affordable hous-

THE GOVERNOR’S COMMISSION REPORT | 63ing fund, which may be channeled into“Community Land Trusts” as describedbelow. This approach would be adoptedon a community-by-community basis,as part of a local government’s plan formeeting the permanent affordabilitygoals and, where adopted, should beimplemented relatively early on, perhapsbetween six and nine months, sothat it may be applied as developers beginthe rebuilding process. This recommendationcarries a relatively high pricetag that will be imposed primarily upondevelopers. Ultimately, however, developerswill pass the price increase alongto the purchasers of non-affordablehousing within their developments.Recommendation 14: Developer AffordabilityIncentives. In place of, or inaddition to, affordability requirementsfor developers, cities and counties cancreate incentives to encourage developersto incorporate a greater percentageof affordable housing within their projects,as well as to make their housingunits safer and more efficient. Theseincentives could take the form of densitybonuses that allows higher densitiesthan would normally be allowed withinthe zoning requirements, expeditedpermitting, waived or reduced offstreetparking requirements, or otherincentives backed by financial mechanisms.Each community must assess itscapacity for incentives, although somenonprofit organizations, such as GlobalGreen, Smart Growth America, or theUrban Land Institute, may provide suggestionson the type of incentives thathave proved effective in the past. Thesewill be less controversial than affordabilityrequirements for developers, and,therefore, can be implemented morerapidly – ideally within three to sixmonths. This will encourage the developmentof more affordable housing asthe rebuilding process begins. Some ofthe incentives – such as reduced permittingfees – may result in a small reductionin local government revenues.Over the longer term, however, muchof this reduction may be offset by lowerinfrastructure requirements associatedwith dense, mixed-use developmentpatterns.Financial MechanismsIn addition to the institutional recommendationsdescribed above, thereare a number of financial mechanismsthat could be used to encourage an adequatesupply of affordable housing asthe Coast reconstructs and grows. Thesesuggestions can be organized into threebroad categories: providing immediatefinancial relief for communities to allowtime for adequate planning for affordablehousing; increasing the opportunitiesfor affordable home ownership, andincreasing the quality and efficiency ofaffordable housing.With displaced residents, businessesstruggling to reopen with a shortageof labor, and decimated municipal andcounty tax bases, the pressures to rebuildhousing as quickly as possible are enormous.Even so, it is important to ensurethat adequate time is allowed for strategicplanning such that that the timeand money invested in the rebuildingprocess yields optimal returns. It is useful,therefore, to consider strategies thatcan relieve, at least to some extent, thepressure to rebuild at break-neck speed.Recommendation 15: Municipal Tax-Base Relief. Municipal and county budgetsare highly dependent on propertytaxes, which have been dramatically reducedfollowing the destruction of Katrina.For this reason, local governmentsare pressured to have owners rebuildas quickly as possible – even beforethe planning process is complete – sothey may begin paying property taxes.To circumvent this dilemma, it wouldbe useful to allocate some federal andstate funding, likely through appropriations,to pay a portion of the lost propertytaxes within these communities for2006 and 2007. This would allow thecommunities to continue to provideservices and maintain employees withouthaving to “rush to rebuild” beforethey are ready and before planning isadequate. Congress, federal agenciessuch as HUD or FEMA, state government,or some combination thereofshould fund this relief. The fundingstream for this recommendation shouldbe established as quickly as possible, ideallywithin three months. The requiredsubsidy to local governments graduallywill diminish over a period of one totwo years as housing is rebuilt and localtax-base revenues stabilize. The exactcosts for such a program have notbeen tabulated, but they are certainto be large. For this reason, federal involvementwill likely be necessary, butstate resources, if available, will certainlyprove useful as well.AffordabilityThe Commission recommends thatthat all housing initiatives related toHurricane Katrina place a priority onaddressing the needs of low-income/low-wealth residents by directing significantresources to those census tractsdesignated by the United States TreasuryDepartment as “Investment Areas.”The Treasury Department’s CommunityDevelopment Financial InstitutionsFund (CDFI Fund) requires that recipientsof certain federal funds designatea target market. All target markets mustinclude “Investment Areas” to be competitivein the application. CDFI Fund

64 | AFFORDABLE HOUSINGInvestment Areas (IA) are:■ Census tracts with the percentage ofthe population living in poverty of20 percent; or■ Census tracts with a Median FamilyIncome (MFI) less than 80 percent ofthe Area Median Income (AMI); or■ Census tracts with an unemploymentrate greater than 1.5 times thenational average;■ Rural counties that have experiencedpopulation loss of 10 percent as calculatedfrom the most recent decennialcensuses.Investment Areas also include HotZones that are a subset of InvestmentAreas and are considered the areas “ingreatest need of assistance.”Table 4 exhibits the penetration ofInvestment Areas in the Coastal Cities:The Commission recommends thatthe state use a modified version of U.S.Treasury Department’s Investment AreaCriteria to target housing resources tolow-income/low-wealth census tracts.There are several advantages to thisapproach:■ Ease of Implementation — The censustracts have already been designated,and online mapping software canbe used to determine if a project is inan eligible area.■ Follows Existing Federal GuidelinesBy using criteria from an existingTreasury Department program, thecriteria have been tested and are notopen to criticism of subjectivity.■ Achieves Desired Outcomes — Thecriteria assure the use of funds inlow-wealth areas, thus increasing theprobability that the desired impact inlow-wealth communities will occur.There are specific models and organizationsin the state that have significantexperience with each of theseprograms. Rather than the creatiionof new programs and areas of expertise,existing channels should be usedwhenever possible. By using existingmodels, speed and accountability willbe increased.Under the most likely scenario, aqualifier for affordable housing wouldhave annual income of less than $30,000(60 percent of median income) and atarget monthly payment on a home of$350 and $400 per month. Below aresome examples of conventional loanscenarios using a 6.75 percent projectedinterest rate.LOAN TERM INTEREST MONTHLYAMOUNT RATE PAYMENT$100,000.00 30 Year 6.75% $648.60$75,000.00 30 Year 6.75% $486.45$65,000.00 30 Year 6.75% $421.59$50,000.00 30 Year 6.75% $324.30Using traditional financing, the onlyscenario that meets the above mentionedcriteria for affordable housingwould be a unit where the end userobtains financing for $50,000. In thisscenario, a 1,000-square-foot homewould have to sell for $50.00 per squarefoot. With rising costs of construction,notwithstanding new flood elevationrequirements which will likely furtherincrease cost of construction on a perunit basis, it would be difficult, if notimpossible, to deliver a quality productfor $50.00 per square foot. Additionally,such an arrangement would not beprofitable for private contractors, makingit very difficult to find a contractorto build the units.Two alternatives make these unitsfit the affordable housing criteria: 1)through interest rates, or 2) throughunit cost. The following table showsthe same loan amount scenarios usingthe maximum interest rate that couldbe charged for each loan amount andyielding a monthly payment not exceeding$400 per month:LOAN TERM INTEREST MONTHLYAMOUNT RATE PAYMENT$100,000.00 30 Year 2.50% $395.12$75,000.00 30 Year 5.00% $402.62$65,000.00 30 Year 6.00% $389.71$50,000.00 30 Year 8.50% $384.46

THE GOVERNOR’S COMMISSION REPORT | 65By lowering interest rates, as shownabove, an owner could finance a$100,000 mortgage that will have amonthly payment of less than $400 permonth. However, finding a lender whowill provide a mortgage at between 2.5and 6 percent is unlikely. Establishing afederal mortgage pool that will allowlow- to moderate-income home buyersin the disaster area to obtain financingwith extremely low interest rates as illustratedabove is an option. This wouldhelp deliver a superior product withmonthly payments that are within thelow- to moderate-income criteria. Additionally,this scenario would be muchless of a burden to taxpayers.If the interest rate solution is not feasible,then the cost of the units must becontrolled to such an extent that theend user is still able to finance a homethat yields a monthly note that does notexceed $400. For example, if a builder isable to build a 1,200-square-foot homeat a cost of $62.50 per square feet totaling$75,000 and requires at least a15 percent net profit margin, then thehome must be sold for $86,250. At a6.75 percent interest rate, the end usercould only finance $61,000 of the purchaseprice and still maintain a monthlypayment not exceeding $400, whichleaves a $25,250 gap between the sellingprice of the home and what the enduser can finance. This gap would have tobe subsidized in some manner, whetherit is cash or massive tax incentives to thedeveloper. The $25,250 gap can be recordedas a mortgage on the home witha “due on sale” clause.A combination of these two methodsmay provide a possible solution; lowerinterest rate loans provided to hurricanevictims by a mortgage pool along withtax incentives to developers that will allowhome builders to sell the homes atcost with after-tax incentives that willguarantee them an effective net profitmargin. These builders could be contractedto build numerous homes thuslowering their net profit requirement,which they could mitigate by sheervolume.Multi-Family Affordable HousingMulti-family affordable housing willexperience the same issues with otherlender requirements that must be metto obtain financing. For example, a 300-unit apartment complex with each unittotaling 900 square feet would have atotal of 270,000 rentable square feet.The 300 units would yield $1,440,000in annual rental income at 100 percentoccupancy. If the cost to buildsuch a complex totals $65 per squarefoot, cost of construction would total$17,550,000. The loan amount at 90percent of cost would be $15,795,000,which would carry with it an annualdebt service of $1,441,192 if the loanwas amortized on 20 years at 6.75 percentinterest. In this scenario, before anyexpenses are paid on the property, theproperty would have an operating lossof $1,192 and would not come close tomeeting a 1.20 debt service coveragerequired by a lender.In both the single-family and multifamilyscenarios, it is obvious that alow-interest lending pool for homeowners and developers must be establishedand/or massive tax incentives orgovernment subsidies to developers andhomeowners will be needed to providea quality product and meet the affordablehousing criteria. In summary, it willbe necessary for the governor and thelegislature to work to develop programswhich address home ownership needsthat may not be covered or adequatelyfinanced by federal legislation. Recom-

66 | AFFORDABLE HOUSINGmendations in this section, therefore,pertain to the goals of identifying andsecuring funds to subsidize affordablehousing along with reducing other financialbarriers to home ownership.Recommendation 16: HurricaneStress Mortgages. Existing mortgageprograms will serve some, but not all,residents. Insurance settlements can beheld pending FEMA resolutions, whichhave taken as long as 36 months in pastdisasters, and SBA programs may notcover the full replacement or repaircosts. Consequently, it will be importantto develop programs which addresspopulation segments with known difficultiesin recovering their pre-Katrinahousing situation: elderly homeownersthat experienced severe loss, homeownerswith mortgages whose settlementsand current income do not leave themwith enough resources to rebuild withoutfiling bankruptcy, and individualswhose credit is too poor to allow themto qualify for SBA funding.Many low-income homeowners arelikely to be uninsured or underinsured,while renters generally have limitedcash for down payments. In addition,borrowers will face difficulty meetingtraditional mortgage criteria due tohurricane-related issues such as unsettledinsurance claims on existing mortgagesor late payments due to incomedisruption. Even people with strongcredit may lose their homes due to theinability simultaneously to pay for anexisting mortgage on a damaged property,for temporary housing, and for rebuildingcosts to either replace or repairdamaged property. The flooding causedby the hurricanes in non-flood zones,where flood insurance was almost nonexistent,has only exacerbated problems.Non-predatory mortgage products withflexible underwriting features, whichNon-predatorymortgageproductswith flexibleunderwritingfeatures,which takeinto accounta borrower’spre-hurricanecredit historyand factor inother effectsof the disaster,will be neededto ensure thatlow-incomeindividualsand familiesparticipatein the longtermrecoveryof theircommunities.take into account a borrower’s pre-hurricanecredit history and factor in othereffects of the disaster, will be needed toensure that low-income individuals andfamilies participate in the long-termrecovery of their communities. Theseproducts could be used by those facingmortgage defaults or foreclosure, or bythose who have no other means to purchasea home.For this recommendation, EnterpriseCorportion of the Delta has an establishedmortgage program that workswith local banks, mortgage companiesand brokers. The mortgage productsprovide flexibility for residents displacedby Katrina. As additional flexibilityis needed, the state along with otherhousing agencies should work togetherto suggest changes to the secondarymarkets. If necessary, the state may offerto act as an additional guarantor forsuch mortgages. This recommendationshould be implemented within six to 12months to assist residents as they transitionfrom temporary to permanenthousing. There is very little cost associatedwith this proposal, primarily administrativecosts on the part of lendinginstitutions. The most important factoris the willingness of mortgage brokersto revisit their risk analysis accountingprocedures to consider extenuating circumstancesin the aftermath of HurricaneKatrina.Recommendation 17: CDBG/HOME Grants. Existing programssuch as the CDBG disaster relief andHOME funds are well suited to providegrants to rehabilitate damaged homesand to assist homeowners who experiencegaps in insurance and FEMA coverage.Additionally, these funds shouldbe used as forgivable second mortgagesto make home ownership affordableand to help residents build equity. To

THE GOVERNOR’S COMMISSION REPORT | 67ensure that public resources benefitthose most in need, a percentage of subsidyfunds should be dedicated to assistvery low-income residents, particularlyrenters seeking to become homeowners.Responsibility for this recommendationshould rest in part with the state,with an entity such as Enterprise Corporationof the Delta (possibly actingthrough the new CDE described inthe recommendation “New StatewideCommunity Development Entity” toallocate the funds), and with HUD,which provides them. This can be initiatedin the near term, and should continueuntil affordable housing needswithin the Katrina-affected region aremet. Little cost is associated with thisrecommendation; rather, it represents aredirection of existing funds.Recommendation 18: LIHTC HurricaneDesignation. Currently, lowincomehousing tax credits (LIHTC)developers who focus their affordablehousing activities on communities withhigh poverty rates receive a credit thatis 30 percent higher than for activity inother areas. Hence, most LIHTC developmentoccurs in areas of high poverty,because the higher credit allows developersto make rental rates more affordablethan in its absence. By expandingthe higher credit to all areas affected bythe hurricane, as designated by FEMA,the LIHTC program would create incentivesto build affordable housingin economically diverse communities– not solely in areas of high povertyconcentration. 5 A percentage of units inall LIHTC projects should be dedicatedto very low-income families. HUDadministers the LIHTC program andmust make a policy revision to affectthis plan. The state should lobby HUDto consider this policy change. Effortsto encourage HUD to adopt this recommendationshould commence immediately.Given the bureaucratic natureof large federal agencies, however,it might take six months to a year forHUD to make the necessary programmaticchanges. There is little cost associatedwith this recommendation; rather,it represents a redirection of existingfunds.Recommendation 19: Section 8Voucher Opportunities. Using FEMApayments combined with HUD rentalvouchers and other subsidy funds, HurricaneKatrina has provided an opportunityfor Section 8 voucher holders tobecome homeowners. Steps should betaken by local housing authorities, actingin concert with “New StatewideCommunity Development Entity,” toexplain the process of qualifying for amortgage loan to their voucher holders.Those who qualify would be able topurchase a home with a minimal downpayment and in many cases could own ahome for the same monthly cost as theirrental payment. The Mississippi HomeCorporation has agreements in placewith eight public housing authoritiesto provide homebuyer preparation servicesto their Section 8 voucher holderswho want to use a Section 8 voucher topurchase a new home. HUD recentlyfunded the Mississippi Home Corporationto continue this program for FY2006. The “New Statewide CommunityDevelopment Entity” (CDE), actingin cooperation with HUD, shoulddevelop an initiative that would supportthis effort. The proposed outreach centersto be supported by the statewideCDE should have staff capable of workingwith low-income residents to poolresources and make them viable homepurchasers, and FEMA-supported casemanagement counselors should also beknowledgeable and capable of offering“I’m currentlyliving in theupstairs portion ofmy house due to 31/2 feet ofwater. I’ve justcome back fromthe forum atGautier at thejunior college,and it waswonderful andexciting to hearwhat all was goingto be done inour community.”– Alice Baker, Pascagoula

68 | AFFORDABLE HOUSINGadvice on these matters. This recommendationwould require the new statewideCDE to work with local housingauthorities in collaboration with HUD,FEMA, and the Mississippi Home Corporation.Ideally, this program would beput together within six to nine monthsand require around $250,000. FEMAand/or HUD may be able to providesupporting funds.Recommendation 20: Employer-basedhousing assistance. Though employersdo not have legal responsibility to assisttheir employees with affordable housingoptions, in many circumstances itmay be in their best interest to do so.This is especially true for post-KatrinaMississippi, where lack of affordablehousing may severely curtail the availablelabor pool as businesses attempt torebuild. Per this recommendation, theWith such a high proportion of low-income residents inMississippi and on the Gulf Coast, hurricane recovery in theirneighborhoods poses particularly difficult challenges■ More than 42 percent of all working families in Mississippiare low-income—the highest rate in the nation.■ Over a third of the jobs in Mississippi pay below-povertywages.■ Over 90 percent of the homes in Harrison County (Biloxi andGulfport) did not have fl ood insurance.■ About 65 percent of the housing units exposed to the stormsurge and over 57 percent of the units exposed to fl oodingwere occupied by households with incomes below the U.S.median household income level.■ In Hancock and Harrison Counties, almost three quartersof the housing units were occupied by households livingbelow the U.S. median income level.■ The majority (62%) of housing units across the three southernmostcoastal counties was built before 1980, whichmeans they were likely to be more vulnerable to wind andwater damage and will cost more than their insured valueto replace.■ In the three-county area, about one-third of the housingunits exposed to the storm surge were built before 1980; inHancock and Jackson Counties, this estimate increases tomore than 40 percent.■ In a sample of 6,404 housing units on the Biloxi peninsula,94 percent of the households lived below the U.S. medianincome level, and 80 percent of those homes experiencedextensive to catastrophic damage.■ Ninety percent of housing units in the in the Biloxi peninsulaneighborhood were built before 1980. Pre-1980 homes thatwere extensively or catastrophically damaged represented73 percent of all homes in that area.state should (a) help educate businesseson the advantages of providing financialassistance to support affordable housing,and (b) create the appropriate institutionalmechanisms to funnel corporatehousing assistance in the most efficientmanner. In the case of the gambling industry,gaming laws require that gamingoperators make peripheral communityinvestments, and gaming regulationsshould be amended to allow investingin affordable housing as a qualifyingcontribution. Fannie Mae and EnterpriseCorporation of the Delta haveworked for the last several years educatingemployers about such programsand providing tools of implementation.There are several good models availablethrough these two organizations.The state and local governments andprivate corporations should help assessthe opportunities for employers, providenecessary outreach, and assist inthe coordination of this effort. This assistanceprogram should be establishedwithin three to six months. Costs ofthis program will likely be significant,and better quantified once the housingneeds assessment discussed above iscompleted. Other than administrativesupport, most of the costs will be borneby the businesses. In many cases, however,assisting with the development ofaffordable housing will be cheaper thanthe alternatives – suffering labor shortagesor paying to bus workers in fromremote communities on a daily basis.Recommendation 21: Private FinanceInitiative. This initiative is similar tothe Section 8 vouchers program, buthere the government provides an annuitystream to private concerns to helpthem undertake development effortsthat would not otherwise be profitable.For example, a development firm mightconstruct affordable housing and col-

THE GOVERNOR’S COMMISSION REPORT | 69lect below market rents from residentsand then be eligible for a supplementalpayment directly from the government.This program could be supportedby federal, state, and local governments.Endowments from public, philanthropic,and private sources may also fund thisendeavor. This recommendation wouldinvolve collaboration with HUD, stateand local governments, the MississippiHome Corporation, the CDE, and privatedevelopers. This program should beestablished within six to nine months.The costs of this program are potentiallyhigh; funding could be provided byfederal, state, or local governments, orby nonprofit foundation grants.Recommendation 22: CommunityLand Trusts. This recommendationinvolves the use of public and privatefunds to create nonprofit communityland trusts (CLTs) that would maintainland for affordable housing. A CLT isa nonprofit entity that would own theland but not the buildings on the land.Individual residents own the buildings,have a long-term lease on the land, andact as members of the trust. The compellingadvantage for CLTs is to ensurethat even if surrounding land values rise,homes within the trust will remain affordable.This can be achieved, for example,by structuring the charter of theCLT such that the appreciation of individualhome values cannot exceed therate of inflation. Possible mechanismsfor assembling CLTs would includeland purchases, transferable developmentrights, land swaps, or eminent domain.The Commission makes a similarrecommendation in the section onLand Use. Local governments wouldwork with housing advocacy groups toset up nonprofit community land trustentities. If necessary, the state couldprovide enabling legislation to governvarious facets of the CLT institutionalstructure. This recommendation shouldbe pursued in three to six months suchthat development decisions and landassembly activities can commence. Assemblingland trusts will be relativelycostly. Likely funding sources includefederal agencies such as HUD, the state,local governments, NGOs, developers,and local businesses interested in assistingwith housing for their low-incomework force.Incentives to Improve the Qualityand Efficiency of Affordable HousingProviding housing that is affordableto lower-income workers involves notonly ensuring sufficient supply, but alsocreating incentives to improve the qualityof construction and, therefore, thelong-term affordability of the housing.In many cases, so-called affordablehousing is extremely inefficient, and as aresult residents must spend more on energy,utilities, and maintenance than residentsof larger, more expensive homes.Yet with proper incentives, developerswill be motivated to build affordablehousing that performs as well as otherhousing in the region. Accordingly, theoverarching goal of recommendationswithin this section is to create opportunitiesfor individuals and builders toinclude consideration of the long-runoperational costs of a home, includingsafety risks, maintenance costs, waterand energy costs, and transportationcosts, within development decisions.Essentially, this approach would beginwith a set of basic minimum standardsfor building technologies and configurations,and then would identify severalcategories of improvement above andbeyond the minimum standards thatwould result in higher levels of safety,lower maintenance costs, reduced waterand energy consumption, and reducedneed for reliance upon the automobile.A coordinated set of incentive strategieswould be implemented to encouragedevelopers to build, and homeowners topurchase, housing units that meet thesehigher standards of improvement. Specificincentive strategies are outlined inthe recommendations that follow.Recommendation 23: Create a CombinedFannie Mae Mortgage Product.Fannie Mae currently offers energy-efficientmortgages under one program,and location-efficient mortgages undera separate trial program. Locationefficientmortgages are based on theidea that if one lives within a walkableneighborhood, or close to transit, thenone does not necessarily need a car andcan afford to spend a higher portion ofincome on housing. The Governor’sCommission requests that Fannie Maecombine these mortgage programs,along with a housing durability component,into a single housing efficiencymortgage product. Based on reducingthe overall lifecycle cost of a home,this program could be designated as anexperimental Katrina Recovery Mortgage.If a home is built to enhancedstandards of durability, energy efficiency,water efficiency, and location efficiency,then homeowners would qualify forthis product. Additionally, in contrastto Fannie Mae’s existing products, thisprogram should qualify homeownersfor a lower interest rate, as opposed toa larger loan. After all, when the operatingcost of a home is reduced, thenthe risk of default, and hence the rateon the mortgage, should be lower. Thestate should work with Fannie Mae todevelop this product. The goal would beto target program development withinsix months. The state should ask FannieMae for assistance in developing this

70 | AFFORDABLE HOUSINGAs insurancecompaniestake stockof theiroperationson the Coast,they should beencouraged toreduce theirrisk premiumsfor housingthat exceedsbasic waterand windsafety codes.program. The Department of Energyand EPA might also be asked to supportthis effort. The long-term costs aredifficult to predict at this point, thoughthe long-term benefits should exceedthe costs.Recommendation 24: Innovative EfficiencyMortgages. Private mortgagecompanies should be encouraged to reducetheir lending rates for affordablehousing that is efficient with respect tolong-term maintenance needs, water usage,energy usage, and location. The rationaleis that as these operational costsfor home ownership are reduced, so toois the risk of default. The MississippiHome Corporation should encouragebanks to experiment with this idea byproviding guaranteed support as thefinancial community collects informationto assess the program. For instance,in the event of a default the state couldback the difference between the interestthat would have been charged and thelower rate being offered under this program.The Mississippi Home Corporationand the CDE should work togetherwith private companies to develop thisprogram. This effort likely would beconducted in concert with the recommendation“Create a Combined FannieMae Mortgage Product” discussedabove. This program would ideally bedeveloped within six months. In additionto working with private lenders,the state should ask Fannie Mae, as wellas the Department of Energy and theEPA, for assistance in developing thisprogram. While the long-term costsare difficult to predict at this point, thelong-term benefits should exceed thecosts.Recommendation 25: Innovative InsurancePrograms. As insurance companiestake stock of their operations onthe Coast, they should be encouragedto reduce their risk premiums for housingthat exceeds basic water and windsafety codes. To the extent that additionalsafety measures reduce the riskof damage in the case of severe weatherevents, those savings should be passedalong to homeowners. This, too, shouldhelp make housing more affordable andcreate greater incentives for developersto exceed basic codes. The federal floodinsurance program already includes reductionsfor basic safety features, butperhaps the insurance premium reductionsshould be even larger to providemore incentives for additional safetystrategies.The Mississippi Department of Insuranceshould take the lead in developingthis program and working with insurersto implement it. Within six monthsthe program should be developed. Theexpense associated with this recommendationwould likely be relativelylow. The primary cost, borne by theDepartment of Insurance and privateinsurance firms, would be administrativein nature as the program is set up.Once the program is implemented, thepremiums charged by insurance companiesfor homes built to higher safetystandards will of course be reduced, butso, too, will the required payouts thenext time a major storm hits.Recommendation 26: Future PropertyTax Rebates for Efficient Housing. Withlocation- and resource-efficient housing,local governments over time willspend less on utilities and infrastructuresuch as roads or sewer lines. For this reason,they should be able to offer reducedproperty taxes on units that are locatedin high-density mixed-use neighborhoods,are located near transit, or useenergy and water at high levels of efficiency.Unfortunately, with the existingloss of the property tax base, there is no

THE GOVERNOR’S COMMISSION REPORT | 71reasonable way for local governments tooffer such tax breaks at the present time.On the other hand, as rebuilding occursand the local tax bases are restored, itshould be possible to offer future taxbreaks, perhaps after 2008. Local governmentsshould offer lower propertytax rates after 2008 for all homes thatreduce their needs for infrastructure.The Mississippi State Tax Commission,working in conjunction with theMississippi Public Service Commissionand the Mississippi DevelopmentAuthority, should assess the potentialinfrastructure savings that would resultfrom improved housing quality and efficiency,and subsequently recommendlevels of tax reductions that would resultin net benefits for municipalities.This evaluation may be informed bythe results of the “Best Practices Assessment”recommendation discussed earlier.Even though the tax rebates wouldnot occur for several years, the programshould be set up within six months sodevelopers may consider the future taxbreaks in their building design decisions.Relatively low costs are associatedwith this recommendation, with mostof the expenses related to administrationas the program is created. Over thelonger term, net benefits to cities, in theform of reduced infrastructure costs, willoutweigh the costs of the rebate offered.Recommendation 27: Direct publicsubsidies. The state and/or federal governmentalso should consider directlysubsidizing housing improvements designedto make affordable homes evenmore affordable by reducing energy andwater expenses, maintenance costs, andtransportation costs. The governmentcould pay the difference in the cost forhomes that are built to higher standards,for example, or offer no-interest loansfor the upgraded portion of the housingprice. Federal agencies such as HUD,EPA, or DOE and/or state agencieswould need to establish this programwithin six months so that they couldinfluence building design decisions asthey are made. The costs likely wouldbe high, and would be borne by federalor state agencies responsible for theprograms.New Institutional RequirementsThe destruction of homes in SouthMississippi necessitated a variety ofnew institutional roles within the state.To ensure that a sufficient quantity ofaffordable housing can be rebuilt asquickly as possibly, the Commissionrecommends that the state review eachof these needs and either: (a) delegateauthority for meeting the need, as wellas allocate any additional required funding,to an existing entity; or (b) authorizeand fund the creation of a new entityto fulfill the need.

72 | AFFORDABLE HOUSINGRecommendation 28: Housing RecoveryOversight. The state legislatureshould immediately create an entityresponsible for coordinating the overalleffort to rebuild affordable housingwithin the Katrina-affected counties.The entity would, for example, helpoversee the implementation of many ofthe recommendations provided withinthis report. This entity should be establishedimmediately to provide continuityon housing issues after the Governor’sCommission has finished its initialwork. The cost for this recommendationshould be relatively low, requiring fundingto pay for salaries and office spacefor a few staff members. While this maybe funded by the state, there may bevarious additional sources of funding atthe federal level or from grant-makingfoundations available as well.Recommendation 29: CoordinatedFunding Management. An entityshould be established to identify, collect,prioritize, and disburse available fundingsources for the development andrenewal of affordable housing. Specifictasks would include:■ Coordinating different public fundingmechanisms, such as HUD funds,CDBG funds, low-income tax credits,and new market tax credits, andfacilitating the flow of resourcesfrom state and federal agencies towhere they are most needed.■ Coordinating the funds and effortsoffered by philanthropic and NGOprograms such as Habitat for Humanityor the Enterprise Foundation.■ Developing clear criteria for prioritizingthe disbursal of funds toaffordable housing projects, whichmight include local demographicfactors, business employment needs,safety and efficiency of proposedMany smallcontractorsare workingin SouthMississippiwith littleexperiencein large-scaleprojects, andwill likelyhave difficultycompetingfor contractsagainstlarger, moreestablishedfirms fromoutside theregion.development, and consistency withintended design guidelines.■ Coordinating the participation ofvarious entities – public, private, andnonprofit – within specific projects.The state should establish this plan,though it may be structured as a nonprofitentity so as to gain access to varioussources of funding. While this entityshould be established as quickly as possible,the complexity of its responsibilitiessuggests that it may take six to ninemonths to create. It will require substantialcosts in the form of staff salariesand office space. Fortunately, many ofthe potential funding sources such asnew market tax credits may allow forsome portion to be dedicated to administrativerequirements. Over time thisentity should be self-funding with littledependence upon the state.Recommendation 30: Outreach andEducation. Many aspects of the rebuildingprocess will be either financiallycomplex or technically novel. For thisreason, there should be an entity capableof offering educational outreach ona variety of issues to residents, developersand communities. This will be particularlyimportant for assisting low-income,historically-significant areas suchas Turkey Creek, Point Cadet, and theKreole neighborhood of Moss Point.Outreach centers should be spreadthroughout the Coast and be easily accessibleto all communities affected bythe hurricane. Specific educational outreachroles would include:■ Developing financial literacy programsto help residents and buildersunderstand financial opportunitiesthat are available for affordable housing.Preexisting credit problems, incomedisruption, and existing mortgageshanging over families that facesignificant new debt to rebuild will

THE GOVERNOR’S COMMISSION REPORT | 73be widespread and will create roadblocksfor families trying to put theirlives back together. Families will beripe for predatory lending offers thatwill seem to provide easy outs. A majorinitiative will be needed to helparm families against this problem,involving credit counseling services,quality loan staff from banks andmortgage companies, housing counselors,community action agencies,Mississippi Cooperative ExtensionAgents, and FEMA’s UMCOR/VOAD contractors. A flexible andsophisticated assistance and advisorysystem should be established to helpthem head off trouble. The nucleusof this delivery system already existsin Mississippi.■ Providing “best practices” guidelinesfor various building technologiesdesigned to make homes safer andmore efficient.■ Reviewing design options that supportmore walkable, vibrant communities.This could include coordinationwith any established “designcenters,” as proposed in the LandUse section.The development of capacity to meetthis need would likely be initiated bythe state, but the institution may wellbe structured as a nonprofit entity andestablished in six to nine months.This recommendation will be fairlyexpensive to implement, as it requiresstaff support along with the developmentof outreach centers. It will beimportant to identify as many potentialsources of funding as possible, includingfederal programs and nonprofit foundations.Recommendation 31: Emerging ContractorsProgram. Currently, manysmall contractors are working in SouthMississippi with little experience inlarge-scale projects, and they will likelyhave difficulty competing for contractsagainst larger, more establishedfirms from outside the region. To enableCoast residents, including minority-and women-owned businesses, totake a more active role in the rebuildingprocess, it is appropriate to developa program for training local qualifiedcontractors to build quality affordablehousing. This near-term training effortwill be designed to develop local generalcontractors and provide individualswith basic construction skills. This programshould provide intensive, handsonmanagement training for small localcontractors that will help them growand enable them to bid for government-backedprojects. The state shouldorganize this effort, though it couldbe coordinated by a nonprofit entity.Branch training centers will be neededthroughout communities. Possible technicaland financial assistance for such aprogram could come from the Departmentof Commerce, the Small BusinessAdministration, or the NationalInstitute of Standards and Technology.These efforts should commence withinsix to nine months so local contractorscan begin to bid upon larger-scale redevelopmentprojects as they occur. Thiswill require a moderate level of funding,most likely to be provided by the stateor federal agencies.Recommendation 32: EnhancedBuilding Inspections Capacity. Becausethe number of housing units that needsto be rebuilt over a short time span farexceeds the prior level of constructionefforts within the state, it will be necessaryto create an improved capacity forbuilding code officials along the Coast.Possible responses include the creationof a “lend an official” program over theshort term along with securing funding“We don’t feelthis storm isgoing beatus. We won’tlet it beatus. We lovethe area toomuch; we’reboth bornand raisedhere. Andthat’s wherewe plan onstaying.”– Wesley Devers,Pascagoula.

THE GOVERNOR’S COMMISSION REPORT | 75Recommendation 36: New Six-CountyRegional Planning Agency. To ensureplanning issues associated with housing,transportation and other infrastructureare considered jointly, the Governor’sCommission advocates the creation ofa regional planning authority spanningthe six counties most affected by Katrina.This could be formed in one oftwo ways. First, the existing Gulf RegionalPlanning Commission (GRPC)could be expanded to include housingand other infrastructure in addition totransportation and to cover all six counties.Second, a new regional planningauthority could be created and subsumethe current role of GPRC. Theplanning agency would be created bythe state, working in concert with thecity and county governments in the affectedarea. While this recommendationis not as urgent as others, it should beaddressed within 12 to 18 months. Thestate must determine the long-termsource of funding for the organization.Possible sources include federal funds,state funds, or specially earmarked localsales taxes.SynthesisTable 5: Recommendation Synthesis.Table 5 and Figure 6 put the recommendationsdiscussed above in context.Table 5 represents a synthesis of thehousing recommendations. The firstcolumn lists the name of the recommendation,while the second indicatesits relative importance, with three starsindicating the highest priority. The thirdand fourth columns indicate the timeframeduring which the recommendationshould be initiated as well as aqualitative indication of the likely cost.The next four columns, five througheight, highlight the goal that is supportedby the recommendation (supply,safety, efficiency, and planning coordination),while the final 10 columns (ninethrough 18) provide details on the typesof institutions that will be involved inimplementing the recommendations.Note that a solid circle indicates that avalue of “yes” or “definitely involved,”while a hollow circle indicates a valueof “potentially applicable.”Figure 6 depicts the timeline alongwhich tasks related to the rebuilding ofhousing in Mississippi are likely to unfold.The top section, ImplementationProgram, includes high-level tasks relatedto planning, financing, designing,constructing, and inspecting housing.The pacing of these general tasks setsthe timeframe during which variousrecommendations should be accomplishedin order to provide maximumbenefits. The second section, “Recommendations,”shows the aggregate timelinesfor the four categories of housing

76 | AFFORDABLE HOUSINGrecommendations presented within thereport along with the individual timelinesfor specific recommendations.Note that the color coding within therecommendation section in Figure 6is as follows: Dark colors represent theprimary implementation phase, whilelight colors represent initial planningbefore the implementation phase orcontinued applicability following theimplementation phase; yellow/mustardis used for assessments and pilots; green/light green is used for financial recommendations;blue/light blue is used forinstitutional levers such as codes andzoning; and red/orange is used for institutionalcoordination.ConclusionUndoubtedly, the havoc and destructionwrought by Hurricane Katrinaare unlike anything heretofore seen inAmerican history. Solutions and therecommendations therefore must be ona like scale. Some of the recommendationscontained here are innovative, butthe Governor’s Commission believesthat to truly have a Mississippi that isstronger than before will require thatnew ground be broken and new thinkingemployed to create new housingsolutions that recognize and address theimportance of housing to the economyof South Mississippi and the state.Table 6: Housing Implementation and Recommendation Timelines

ECONOMICDEVELOPMENTIn this section are four committee reports grouped under business and economicdevelopment: Tourism; Small Business; Defense and GovernmentContracting; and Agriculture, Forestry, and Marine Resources.Obviously, there are many other areas of business and economic developmentto be nurtured, restored, and welcomed as newcomers to our state. Themost important things we can do to make that happen are:■ Tax incentives to encourage investment. Done. Thanks to recently enactedfederal legislation. See the full explanation in the Finance Committeereport.■ Business loan incentives. Done. Also thanks to the federal package enactedshortly before the end of December, 2005.■ Accelerated workforce training. This is a big challenge for businesses andour educational institutions throughout the country – but especially inMississippi. As new companies explore partnerships in our recoveringeconomy, one of the first things they’ll ask about is the quality of ourworkforce. See the Education Committee report.■ Affordable housing. Another national issue worth engaging enthusiasticallyin our state. As property values rise, especially in popular Coastalareas, the inventory of affordable housing shrinks. We must have 10,000new units underway or competed within one year. See the Land Use andHousing Sub-Committee reports.

78 | TOURISMTOURISMTourism has long been acentral component of theeconomic, social, and culturallife of Mississippi andparticularly of the MississippiCoast. Prior to 1992, however,the state’s tourist industry fought forattention – and dollars – in a highlycompetitive market. Major destinationattractions in Florida, Georgia, Alabama,Louisiana, and Texas draw millions ofvisitors each year to the South and GulfRegion, but Mississippi’s limited tourismpromotion budget and unfocusedmessage did not keep pace with itscompetitors.The 1992 launch of the gaming industryin Mississippi changed that pace,giving a new identity to the state andmaking Mississippi the third largestgaming market in the United States.The out-migration of shopping dollarsto New Orleans and Mobile wasreversed as more New Orleans andMobile shoppers came to South Mississippifor a day of shopping and visitingits many attractions. 1 With its existingbeaches and family attractions andthe addition of casinos, the MississippiCoast was ideally positioned to fuel atourism industry that grew to the numbertwo private-sector job generator inthe state. Gaming, according to a 2004survey conducted for the MississippiCoast Convention and Visitors Bureau(CVB), was the primary draw for 75percent of visitors. 2Before the hurricane, total state jobsdirectly connected with tourism wereapproaching 100,000. Total spending bymore than 30 million visitors in 2004surpassed $6 billion, and communitiesmost frequented by tourists enjoyedhigher rates of employment. 3 Unemploymentin the Gulfport-Biloxi metroarea in 2004 was 4.1 percent, 4 compared

THE GOVERNOR’S COMMISSION REPORT | 79

80 | TOURISMto the state average of 5.7 percent.Although the scope of Governor’sCommission includes more than 30counties and the Tourism Committeeincluded members from throughoutthe affected region, these planning recommendationsare directed primarily atthe three coastal counties of Hancock,Harrison, and Jackson. Tourism—includingthe gaming, hospitality, andhospitality-support sectors – employsmore people and provides more directand indirect tax revenue in this threecountyarea than any other segmentof the economy. 5 The consequences oftransforming the Mississippi Gulf Coastinto an internationally recognized destination,however, will benefit the otheraffected counties and entire state.Katrina not only altered the landscapeof the Coast but wreaked havoc on thisimportant sector of the state’s economy.The DamageMost tourist attractions sit alongHighway 90 near the beachfront, andthe entire 76-mile beachfront area wasinundated with tidal surge. The heavylosses include:■ Casinos: All 13 casinos in Harrisonand Hancock Counties were destroyedor heavily damaged and maynot be fully operational for months.While most casinos have committedto rebuild, not all have announceddefinite plans and schedules.■ Hotels: An inventory of 16,982 availablerooms showed that only 4,421(26 percent) were operating onemonth after the storm. 6■ The Beach: The shallow waters of theMississippi Sound and the 26-mileman-made beach, the major touristattraction in South Mississippi, areA snapshotof Mississippitourism beforeKatrinaIn 2004:■ Tourism accounted for92,400 jobs, 8.3% of allnon-farm jobs in thestate, and generated anannual payroll of $1.7billion.■ Almost 31 million tourists—84percent of whomcame from out of state—spent $6.1 billiion.■ Tourism-related taxes of$471 million accountedfor 10.3 percent of thestate’s General Fund.Source:Mississippi Development Authority.FY2004 Economic Impact ofTourism. 2004.littered with debris and will require amajor cleanup.■ Highway 90: Not only the Coast’smajor east-west traffic artery, but theonly access to most tourist attractions,the beachfront highway wasclosed across Harrison County dueto storm damage. Portions of Highway90 have reopened, but the twohighway bridges connecting HarrisonCounty to Jackson and HancockCounties were destroyed and remainclosed. The Popps Ferry Bridge connectingBiloxi across the bay openedon Christmas weekend.■ Museums/Cultural Attractions:Richard Moe, president of the NationalTrust for Historic Preservation,called Hurricane Katrina“the worst cultural disaster in U.S.history.” 7 Among the most visitedattractions, the Lynn Meadows DiscoveryCenter, the Frank Gehry-designedOhr-O’Keefe Museum of Art,Walter Anderson Museum of Art,and Maritime & Seafood IndustryMuseum all suffered major damage.Only the Walter Anderson Museumhas reopened. Beauvoir suffered majorwind and flood damage and willtake well over a year to recover. Grasslawn,the Mardi Gras Museum in theMagnolia Hotel, and Tullis-ToledanoManor were all heavily damaged ordestroyed by flood and winds. All buttwo branch libraries were flooded.The Hancock County Historical Societysuffered major roof damage andlost all exhibits. The J.L. Scott MarineEducation Center in Biloxi and MarineLife Oceanarium in Gulfportwere heavily damaged by tidal surges.

THE GOVERNOR’S COMMISSION REPORT | 81■ Charter Fishing: The Gulf Coast CharterBoat Association reports that only10 percent of fishing boats were lost;however, many public piers and marinaswere destroyed. The lack of fuelstorage and hotel rooms has kept theindustry from quickly rebounding. 8■ Golf: This $100 million industrymay be the leader of the tourismindustry’s recovery. Although severalcourses suffered major damage,and at least two may not reopen, theCoast Golf Association reports 14courses (nearly 90 percent) will beoperational by January 2006, just intime for the “snowbird” season. 9 Thelack of hotel rooms and promotionalfunds, however, will be a threat totheir success.■ Mississippi Coast Coliseum and-Convention Center: This facility sufferedmajor flood and wind damageand expects reopening in six to 12months, forcing the cancellation ofseveral events including the MississippiSea Wolves’ hockey season andgames of the new Arena FootballLeague team.■ Retirement: The temporary loss ofthe gaming industry, the destructionof several museums, and the loss ofseveral senior citizen centers will adverselyaffect the ability to draw theretirees or the senior tourism marketfor at least a year.■ Barrier Islands: Ship Island and theother barrier islands that have longbeen popular attractions were washedover by the hurricane. Structureswere destroyed, and the islands lostsurface area.■ Eco-Tourism: A growing industry inThe Gulf Coasthas been a keytourist destinationand stateeconomicdriver.■ Of the state’s 30.7million visitors in 2004,37 percent came tothe Gulf Coast.■ Tourists in the Gulf regionspent $1.9 billion in 2004.■ Prior to Katrina, expertspredicted more than 12million visitors wouldspend $2.5 billion onthe Gulf Coast in 2006.Sources:Mississippi Development AuthorityMississippi Gulf Coast,Convention & Visitors BureauMississippi, particularly in the PascagoulaRiver basin, along the Wolf andJourdan Rivers, on Turkey Creek, andamong the barrier islands, eco-tourismcan recover quickly despite noticeableenvironmental damage fromHurricane Katrina. Opening hotelsand Highway 90, however, is necessarybefore eco-tourists return.■ Employment: Loss of casinos, hotels,restaurants, and attractions helpedcatapult the coastal counties’ unemploymentrate from an average of 5percent before the storm to over 20percent afterwards. Most industrysectors, including tourism, will face alack of trained workers because thehousing shortage has forced many ofthem to leave the area. 11Beginning a ComebackOne of the first analyses of Katrina’simpact on the South Mississippi economycame in the September 2005 PrécisMetro© Report by Moody’s|Economy.com, Inc. The report predicted a 48 percentdrop in third-quarter employmentand a net out-migration of 45,000 people.The report warned that employmentin the region might not return topre-Katrina levels until 2010. 11Much has happened since those reportswere written immediately followingthe storm, and the actual conditionsare not as gloomy as the Précis© analysisdescribes. Unemployment figures forSeptember and October, for instance,are well below the report’s estimates,and city sales tax collections are aheadof projections for September and October.12 Nevertheless, those early, dire predictionswill be remembered by the restof the nation until the Précis© reportsare updated in March 2006.The Mississippi Legislature took the

82 | TOURISMfirst and most important step in reducingthe “FUD Factor” (Fear, Uncertaintyand Doubt) among the investmentcommunity when it authorizedCoast casinos in Harrison and Hancockcounties to move inland, thus reducingthe likelihood of complete destructionto those facilities by future hurricanes.The highest hurdle in their recoveryhas been cleared. The Coast’s hospitalityindustry—before casinos—was basedaround the beach and local history andculture. So as the gaming industry preparesits return, the challenge is to recreatethis special sense of place.After almost two months of research,discussion and debate by the TourismCommittee, the Commission recommendsthe following goal be adopted bylocal governments on Mississippi GulfCoast and appropriate tourism agencies:The Mississippi Coast will becomea Tier One tourist destinationwith a strong sense of place by2010 and generate an appropriatemarketing budget to support thisgoal.The Commission sets forth the followingprinciples to guide tourism’sfuture:■ Maintain a Sense of Place. Much ofthe Commission’s deliberation wasbased on natural, cultural, and historicfactors contributing to a senseof place – the coastal environment,water access, water-dependent activities,local and regional cuisine, musicand art, festivals, and lifestyle. Theseare the greatest resources. Consideringthe recommendations fromthe Mississippi Renewal Forum’sOctober charrette, the Commissionstrongly supports capitalizing onthese resources as they are uniquelyexpressed by the design teams forA top tiertouristdesignationby 2010.To attain Tier One statusas a tourism designationby the end of thisdecade the Coast must:■ Enhance air service,increasing fl ights in andout of the area and developinginternationallinks.■ Increase hotel capacityto at least 30,000 rooms.■ Enlarge conventionand meeting space toat least 600,000 squarefeet.■ Better integrate coreattractions—includingdining, shopping,sports, eco-tourism,special events, fi shing,museums, cultural andhistorical attractions,and major destinationattractions. These attractionsdo not have tobe located in the threecoastal counties butmust be easily accessiblefrom them.■ Boost promotionalspending to at least $20million annually.Source: Richer, Steve (ExecutiveDirector, Mississippi Gulf CoastConvention & Visitors Bureau)interview. 15 November, 2005.each of the 11 coastal cities. Specifically,the architecture and design,transportation and transit planning,housing, the style and diversity ofretail, and creation of tourism “clusters”or districts will help sustain thespecial sense of place. Following theRenewal Forum’s recommendationscan make each of those cities andcommunities a stand-alone attractionand destination, almost demandingthat visitors extend their stays to includeside trips to these downtownsand special districts.■ Share the Katrina Experience. HurricaneKatrina was an experience noone should live through, but SouthMississippians did. Like HurricaneCamille, it will be a part of commonexperience forever. It is somethingthe rest of the world immediatelywill connect with the Coast and itspeople. This identity can be an advantageas people from around theworld will, out of curiosity, want tosee the destruction and witness therebuilding. The suffering and extraordinaryresponse of residents is amajor news story and a major attraction.For the next year or two, “voluntourists”coming to the Coast toaid the recovery will also be a majorsource of tourism. As tourist attractionsreturn and the Coast moves towardthe transformation into a TierOne destination, it should capitalizeon the Katrina experience and theinterest generated in its consequences.A “Hurricane Katrina Tour” couldbe a popular attraction—rememberingits destructive force at specificsites, seeing high-water marks alongthe route, touring a Hurricane Museumof Remembrance, visiting Katrinaexhibits at the J.L. Scott Marine

THE GOVERNOR’S COMMISSION REPORT | 83Education Center and at Infinityat Stennis Space Center. Hurricaneeducation can become a major drawfor visitors and create another identityfor the Mississippi Coast.■ Historic/Cultural Preservation. Theinitial inventory indicates that morethan 1,000 historic structures—bothpublicly and privately owned—weredamaged or destroyed by the storm. 13Due to lack of funds to rebuild andprotracted insurance negotiations,many of the damaged historical andcultural structures are standing unattended.Early estimates suggest a costof at least $8.5 million just to stabilizethose damaged structures so thatthey may be repaired or rebuilt inthe future. 14 Without restoring or rebuildingthose structures, Mississippiand the nation loses much of the historyand culture that defines this regionand attracts visitors. Addressinghistorical and cultural preservation iscritical to accomplishing the “senseof-place”goals.■ Capitalize on our National HeritageArea Designation. In 2004, the MississippiCoast became one of only 27congressionally-designated NationalHeritage Areas. The Mississippi GulfCoast National Heritage Area ManagementPlan, which covers the sixSouth Mississippi counties, shouldbe completed and approved by theNational Park Service, by February2006. The National Alliance of HeritageAreas’ annual meeting will beheld on the Coast in October 2007.A major part of the recovery planshould include supporting and seekingthe funding opportunities andother benefits as one of the nation’sfew National Heritage Areas.The GulfCoast’s economyhas beenparticularlydependentupon tourism.■ The 29 state-licensedcasinos, prime tourismattractors, providednearly 30,000 jobs andgenerated more than$2.8 billion in revenues.■ Before the hurricane,about 22 percent of alljobs in the three coastalcounties were in theleisure/hospitality sector,twice the state averageand more than twicethe national average.■ In Harrison County in2004, 28.7 percent ofall employment wasdirectly tied to tourism.In Hancock County,15.3 percent of jobswere in this sector.Sources:Bureau of Labor StatisticsMississippi Tourism AssociationMississippi Development AuthorityWhat We Can Do Right NowApplying those guiding principles,the Commission recommends the followingfirst steps:■ The Harrison County Sand BeachDepartment and Mississippi Departmentof Marine Resources, throughits Coastal Cleanup programs, shouldclean up the beach and adjacent waterways.Before casinos, the beach wasthe Coast’s primary attraction and instantlycan begin attracting touristsagain. This also will require cleaningthe shallow waters of the MississippiSound to remove debris visible at lowtide.■ MDOT should rebuild Highway 90and the bridges consistent with theprinciples of the Mississippi RenewalForum. MDOT must be sensitiveto regional needs and expectationsregarding transportation plans, andshould follow the transportation andplans recommended through theCommission.■ The Coast should capitalize on the“Voluntourism” market. In the modelof the aftermath of the Mount St.Helens eruption, thousands will visitthe Coast to witness the fury of natureand the spirit of renewal of SouthMississippi. Many will want to be partof that recovery. The Mississippi DevelopmentAuthority (MDA) shouldencourage such attractions to out-ofstatemarkets, and the CVB shouldmarket these sites to in-state markets.■ The state legislature should createa coast-wide Tourism PromotionCommission and fund it with newfunds and/or grants made available

84 | TOURISMto MDA. The origin of such an organizationmay exist in the tri-countypartnership recognized by the state.Regardless of the enabling legislation,the area needs a Coast-wide mechanismfor managing and funding tourismmarketing and promotion. Financialassistance is needed to keepthe organizations such as CVB operationaluntil they can recover theirown funding. Enacting a 1 percentfood and beverage tax may providemuch of the necessary funding.■ Local governments should rebuildpublic piers and marinas according tostronger construction standards andbest practices models provided by theMississippi Department of Wildlife &Fisheries. The Coast must have reliablefacilities to attract boaters, fishermen,and charter boats. Fundingfor these projects may be availablethrough the Water Resource-PlanningAssistance to States program.■ The Tourism Promotion Commissionshould research and test the TierOne destination criteria, includingvalidation of the assumptions and criteria(number of rooms, exhibitionspace, etc.) and determine the retailcapacity needed to attain Tier Onestatus. Additionally, the Tourism PromotionCommission should quantifythe benefits of Tier One status andthe methods to market effectively thedesignation. Funding for this studymay be available through grants fromthe U.S. Chamber of Commerceand/or the federal Economic DevelopmentAdministration.■ Local governments should raise roadsidebeautification standards. The areamust be maintained as a clean, pristineenvironment like any major destinationattraction. The boards of supervisorsin Hancock, Harrison, andJackson Counties should standardizelitter laws and enforce them. Eachcounty’s beautification commissionsor organizations should implementKeep America Beautiful educationalprograms to encourage litter controland cleanup.■ Local governments and beautificationcommittees should enhance landscapingin public areas. Hurricane Katrinatook thousands of trees, shrubs, flowers,and plants from neighborhoodsand roadways. 15 Besides the loss oftheir beauty, the trees cleaned the air,slowed erosion, and provided windbreaksfrom storms. Replacing cen-

THE GOVERNOR’S COMMISSION REPORT | 85tury-old trees will occur over generations,but starting the replanting effortnow will add immediate beauty andbegin the process of replacing the loss.Appropriate local organizations suchas county beautification committeesand neighborhood garden clubsshould provide volunteers for a massiveplanning, landscaping, and maintenanceeffort. Senator Trent Lott hasdirected the Director of Urban Forestryof the United States Forest Serviceto visit the Mississippi Coast foran initial assessment of damage to thetree canopy. The Home Depot Foundationis donating $100,000 to beginrestoration, and the U.S. Forestry Serviceis coordinating other restorationefforts. Local governments shouldlead this effort of coordinating variouspublic and private resources.■ State and local tourism officialsshould share the news of recoveryand renewal and meet with bookingagents, airlines officials, and tourismindustry groups to share plans thatthe gaming industry and other majorattractions will rebuild and returnbigger and better than before.■ The state legislature should beginthe restoration of our cultural andhistoric attractions by enacting stateHistoric Preservation Tax Creditlegislation (HB 1604), which wouldprovide state tax credits and go alongwith federal preservation tax creditsto commercial and residential propertyowners who restore damagedhistoric resources. The federal KatrinaEmergency Tax Relief Act of 2005(KETRA), H.R. 3768, includes specialincentives for individual donorsby allowing them to deduct certaincash gifts in amounts up to 100 percentof their adjusted gross incomeuntil the end of 2005. KETRA thussuspended, for the remainder of 2005,the rule that typically limits the useof charitable deductions to 50 percentof a donor’s adjusted gross income.KETRA also provides that thecharitable contribution deduction forsuch cash gifts will not be treated asan itemized deduction for purposesof the overall limitation on itemizeddeductions. This one-time incentivefor individuals to make year-end cashgifts is not limited to Katrina relief,but can be made to any 501(c)(3) organizations.Congress should extendKETRA to 2007.■ Tourism, heritage, and cultural organizationsshould consider oppor-

86 | TOURISMtunities to share resources. For example,the J.L. Scott Marine EducationCenter and the Maritime andSeafood Industry Museum may becombined into one facility. The cityof Biloxi and Board of Trustees of theOhr-O’Keefe Museum of Art alsoshould focus on soliciting donationsand grants from around the world tocomplete and promote of the Ohr-O’Keefe Museum of Art. The internationalreputation of artist GeorgeOhr and architect Frank Gehry willgarner international attention to thismuseum’s recovery and renewal efforts.The rebirth of the Ohr-O’KeefeMuseum should be a symbol of Mississippi’scommitment to the arts andculture.■ The Governor’s Office and MDAshould host planning charrettes onthe model of the Mississippi RenewalForum’s design charrette. A similarapproach for taking ideas to actioncan be used to develop strategies forheritage and cultural tourism, for retailbusinesses, and for other sub-sectionsof the tourism economy.■ The state and the Mississippi CoastColiseum Commission should quicklycomplete the Coliseum expansionand remodeling. Demand for meetingspace will increase as casinos converttheir meeting and exhibit space intogaming floors. This should be adjustedas needed based on the results ofa study to test Tier One destinationresort requirements for conventionspace.■ Tourism promotion organizationsshould follow through with the creationof a clearinghouse and onestop-shopto research and apply forgrants, loans, and other support forexisting tourism-based organizations.MDA, the Mississippi Main Street Association,Mississippi Heritage Trust,and the Mississippi Department ofArchives and History are coordinatingthe creation and funding of thisentity.■ The Tourism Promotion Commissionshould develop a new marketingplan and slogan for the MississippiGulf Coast. South Mississippihas never received this amount ofnational and international media attention,and tourism officials quicklyshould develop a marketing themeand brand-building plan to capturethis market. The plans should considerand support the goal to reach Tier

THE GOVERNOR’S COMMISSION REPORT | 87One designation.■ Events and festivals should continue.Without such events as Smokin’the Sound, Cruisin’ the Coast, PeterAnderson Festival, and Mardi Gras,Coast communities will lose criticaltourist dollars. Local festival organizersshould seek assistance from MDAand festival organizers in other states.Hotels should receive appropriate resourcesto open quickly and accommodatevisitors to these events.■ Tourism promotion organizationshould focus on golf and charter fishing.Of 16 golf courses in the region,14 were open by January 1, 2006. 16■ The Mississippi Golf Associationshould attract regional golfers andplace golfers with available rooms.The dollars spent by golfers may bethe quickest avenue for stimulatingthe tourism market. MDA can helpthe Golf Association create and financepromotional material and distributeit to golfing markets, lettinggolfers know that courses are openand hotel rooms available. Promotingthe existing Golf Trail and that thesecourses are open with signage on I-10 would have an immediate impacton tourism. The charter boat industryalso survived the hurricane comparativelywell and should be part of thestate’s short-term tourism promotion.Planning for the Long Term■ Private development should transitionthe Coast from the nation’s premierVoluntourism market to a TierOne Destination. This includes buildingadditional hotel rooms, meetingand convention space, restoring and/or reconstructing museums/aquariums/learningand visitor’s centers,and launching a major nationwidemarketing campaign by the TourismPromotion Commission.■ MDA and the local CVB should createat least one new major attractionin South Mississippi. A NASCARtrack, zoo, professional sports facility,and a cruise ship are all possibilities.A new J.L. Scott Marine EducationCenter, Biloxi Seafood Museum,NASA’s Infinity complex and theeco-tourism opportunities along thePascagoula River can each becomemajor attractions. A new HurricaneKatrina Experience at Infinity couldteach about record-breaking Katrinaand about hurricanes in general. Thiscould be tied to a coast-wide “high

88 | TOURISMwater mark” tour. Private developmenttargeted with appropriated taxincentives should fund this attraction.■ MDOT and the Mississippi CoastTransportation Authority should linkattractions, accommodations, and conventionand meeting facilities by trolley,rail, ferryboat, bike and pedestrianpaths, and other multi-modal options.These alternatives to car travel notonly move people conveniently alongour linear market, but could be attractionsthemselves. Funding sourcesinclude grant programs administeredby the Federal Transit Authority.■ Tourism organizations should leveragethe “mini-brands” of our citycenters. The Renewal Forum illustratedmethods to capitalize on theindividual identities and characters ofCoast cities. Developing and promotingthose separate identities help createreasons for visitors to stay longerand go to more than one destination.Tourism officials and organizationsshould highlight these 11 uniqueidentities in their marketing strategy.■ MDA and “eco-tourism” operatorsshould advance “eco-tourism” opportunities.Existing nature trails onland and waterways are attractive tothis market. The Pascagoula River,Biloxi Bay, Turkey Creek, JourdanRiver, the National Seashore, andother areas along the Mississippi GulfCoast provide excellent opportunitiesfor tourists to explore the naturalbeauty and resources of the Coast.■ Local developers should expand theretail horizons. Shopping is the favoriterecreational activity for manytourists, but they want to visit storesnot available at home. MDA and localgovernments should target major retailerslike Nordstrom’s, Saks, Target,Crate & Barrel, and Pottery Barn—especially those willing to tailor theirstore designs to the style and scale appropriateto the Coast. At the sametime, encourage local artists and otherentrepreneurs to create products thatreflect the culture of South Mississippi.■ Local governments and cultural organizationsshould create more themed“trails.” Possible unique tour pathsinclude a Museum Trail, Golf Trail,Nature Trail, African-American HistoryTrail, a Civil War to Civil RightsHeritage Trail, and Art Trail—eachlinking similar attractions. An Art Trail,

THE GOVERNOR’S COMMISSION REPORT | 89for example, from the Walter AndersonMuseum of Art in Ocean Springs tothe boardwalk artists of Bay St. Louis,can be marketed to a targeted interestgroup, just as a Golf Trail is being marketedto golfers. A Hurricane Katrina“High Water Mark” trail could linkhurricane-related exhibits and attractionsand lead to the Katrina exhibit atthe Infinity visitors’ center at StennisSpace Center.■ The Governor’s Commission shouldpublish and distribute the recommendationsof the Commission related totourism industry stakeholders such ascasino owners, hotel owners, airlines,developers who should understandand be encouraged by South Mississippi’srecovery. Before they make thedecision to pull out of this marketor simply not enter the market, theyshould recognize these goals and plansand be a part of this unprecedentedrenewal.■ Local and CVB officials should workwith the state legislature to restructuretourism promotion and funding.The Tourism Promotion Commissionshould be created and newfunding sources considered, such as a1 percent F&B tax—to hit a goal of a$20 million annual budget to marketSouth Mississippi tourism.■ The state should use anniversariesof Katrina to call attention to SouthMississippi’s renewal. Through advertisingand stories in industry/tradepublications and associations, tourismofficial should demonstrate our progressby marking annual hurricane anniversaries.

90 | SMALL BUSINESSSMALLBUSINESSEighty percent of Mississippi’sbusinesses fit the definitionof “small business,”employing fewer than 20employees. 1 So when HurricaneKatrina gashed homes and lives, itespecially affected a primary engine ofthe state’s economy.As the data in the boxes on these pagessuggest, entrepreneurs and small businessowners were on a roll before Augustof 2005. They were creating jobsfaster than larger firms were eliminatingthem. 2 Businesses owned by womenand minorities were growing, and payrollswere increasing. 3 Small businesssalaries are often better than those inlarge firms, because so many high-payingprofessional, financial, scientific, andtechnical positions fall under this category.As a highly diversified sector, smallbusiness remains particularly vulnerableto disasters like Katrina, and for oneprimary reason—small businesses tendto be in smaller buildings less likely tohave survived the hurricane. Many arehome-based. So when 65,000 housingunits are lost in South Mississippiand another 55,000 homes suffer severedamage, small businesses take a disproportionalhit. 4First, the Governor’s Commissionmade a rough assessment of damage tothe sector by inviting chambers of commercein the affected areas to surveybusinesses. The Jackson County, OceanSprings, Hancock County, Picayuneand Mississippi Gulf Coast Chamber(including the Biloxi, Gulfport, LongBeach and Pass Christian chambers)worked together to conduct the inventory.An online survey form was createdwith the help of the MississippiDevelopment Authority (MDA) andmade available on its website, the Mis-

THE GOVERNOR’S COMMISSION REPORT | 91Since so many small businesses are based at home, damge to houses harmed manyemployees in this category.

92 | SMALL BUSINESSsissippi Economic Council website, andall chamber websites. The survey alsowas mailed and hand-delivered to asmany Coast businesses as possible.It was estimated that better than halfof all South Mississippi small businessessuffered damage from Hurricane Katrina.By late November at least 20 percentremained nonoperational. 5Identifying the ChallengesBesides the obvious—the destructionof their facilities—what obstacles facesmall businesses recovering and resuminghealthy growth?The challenges are divided into sevencategories:Confusion About Access to HelpThe Federal Emergency ManagementAgency (FEMA), Mississippi EmergencyManagement Agency (MEMA),Small Business Administration (SBA),Mississippi Development Authority(MDA), Mississippi Department of EmploymentSecurity (MDES), MississippiInsurance Department, area Chambersof Commerce and other federal, stateand local agencies provide a variety ofassistance to small businesses under normalcircumstances, and that assistancehas increased dramatically in responseto Hurricane Katrina. Almost everyneed of small business can be met oraddressed by one or more governmentagencies or community organizationsprepared to help them recover. A majorproblem, however, is that too manysmall business owners are not aware ofavailable assistance or how to access it.A misperception also exists that assistanceis either unavailable or the bureaucracyinvolved in receiving supportfrom this myriad of agencies is so complicatedthat it simply is not worth theSmallbusinessesplay crucialroles inMississippi’seconomyIn 2002, the last yearcomplete fi gures areavailable, fi rms with lessthan 20 employeesaccounted for 82% of allbusinesses in Mississippi.These small businessesprovided:■ 173,500 jobs■ $3.9 billion in payrollsSource:2002 Business Censustrouble. This misperception is commonand accounts for less than one-thirdof the FEMA support applications requestedby businesses being returned toFEMA. 6The Housing ShortageTo restart operations, businesses needemployees, and employees need placesto live. Small businesses tend to be evenmore dependent upon their few employeesthan larger firms because theyhave so little “bench strength.” The lackof housing is a principal reason for thedifficulty facing companies in attractingenough employees to open their business– or to open at full strength. Throughoutthe Mississippi Coast “Now Hiring”signs are prevalent; most restaurantsand other service establishments thatare open have “limited menus,” “limitedservice,” or “limited hours” becausethey do not have an adequate numberof employees to operate at full strength.The problem is particularly acute in thehardest hit, coastal counties.The Transportation SqueezeMany small businesses see no advantageto opening quickly because transportationproblems deny them customersor employees. As of early December,parts of Highway 90 remained closed.The Biloxi-Ocean Springs and BaySt. Louis bridges are not in operation,and the Popps Ferry Bridge opened onChristmas weekend. Traffic along PassRoad, the only fully navigable east-westalternative to I-10 in Harrison Countyfor several months after the hurricane,made traveling short distances a dailychallenge. Most affected are restaurantsand retail outlets, which rely on walkintraffic. Customers must brave limitedroad access and increased traffic to shop,and these transportation challenges may

THE GOVERNOR’S COMMISSION REPORT | 93be another reason why some potentialemployees have not returned to orsought work.Alternative Income and BenefitsAmericans have given generously toSouth Mississippi since the hurricane.The American Red Cross and a hostof non-government agencies have providedfree food and clothing as well asemergency shelter. Some are also providingdirect financial assistance. FEMAhas provided thousands of Katrina victimswith cash payments up to $2,000,and the federal government has liberalizedits food stamp program for Katrinavictims. Many employers have guaranteedsalaries to employees for a periodafter the hurricane. In addition to allthis assistance, MDES expedited theprocess for unemployment assistance tothose who lost or could not find a job.Consequently, many potential workershave little financial incentive to returnto work immediately. As these benefitsend, and businesses competitively increasetheir wage levels, more workersshould be available to meet demand.Until then, small businesses are findingit especially difficult to attract workers.Communication DisruptionsThere were unusual communicationschallenges in getting business assistanceto those who needed the help. Katrinaknocked out all telephone service, andfor more than a month wireless communicationcapability was significantlyreduced. In Hancock County and portionsof Harrison County, telephoneservice remains extremely limited. Thepopulation has been dependent uponcell phone service since the hurricane,but there is no directory of cell phonenumbers available. Internet service toSouth Mississippi was interrupted andMany smallbusinesses seeno advantagein openingquicklybecausetransportationproblems denythem customersor employees.in the hardest hit areas, Internet serviceis still not available. Small businesses relyheavily on wireless communications tomanage inventory and serve customers.Access to Capital IssuesBusinesses need capital to repairand recover. Insurance payouts can beslow in coming simply because of thesheer magnitude of this record-breakinghurricane season. Additionally, the“flood/wind damage” conflict affectsbusiness—especially small business—asmuch as it does homeowners. Untilthey receive insurance payments, smallbusiness owners have to rely on individualsavings to cover personal and businessrecovery expenses. Those not fullyaware of bridge loans and other financialassistance – or those not taking advantageof it – are least likely to reopensoon. Moreover, many small businessesdid not have sufficient business interruptioninsurance coverage, and lostincome since August results in limitedcapital to invest in rebuilding.Many small businesses are not yetaware of the very helpful tax and lowinterestincentives recently passed byCongress and the state. The appropriationgives $441 million to the SmallBusiness Administration Disaster LoanProgram for homeowners and businessessuffering physical damage andeconomic injury.Lack of DaycareMost daycare facilities are small businessesand were either completely destroyedby Katrina or are slow in reopeningfor the same reasons of otheremployers. Without daycare facilities,many potential employees who haveavailable housing need someone to carefor their children before they can returnto work.

94 | SMALL BUSINESSBringing Resources to the EffortThe MDA is making important contributionsfor funding resources forsmall businesses affected by the hurricane.Currently, MDA is making loansfrom a $25 million loan fund, based ona model implemented in Florida afterits recent hurricanes. 7 The first “bridge”loan applicants are receiving loan proceedswithin 48 hours of loan applicationfor amounts ranging from $1,000to $25,000. To help spread the word,the Governor’s Commission coordinatedwith the Sun Herald, the Bay Press,the Sea Coast Echo, the Mississippi Pressand other local newspapers and businessjournals to publicize these programsand resourcesThrough the Small Business Com-mittee, the Governor’s Commissiontook two specific actions shortly afterthe Commission was formed. First, atthe requestof the Commission, the edi-torial board of the Sun Herald agreed topublicize these resources, and second, onNovember 2, a Small Business and MinorityContractors Forum was held inBiloxi to address concerns about businessrecruitment and minority partici-Small businessesare especiallysensitive tochanges thataffect the securityand quality of lifeof all citizens.

THE GOVERNOR’S COMMISSION REPORT | 95pation. A standing-room-only crowd of300 people met with representatives ofgovernment agencies and large primecontractors leading the cleanup effort,including the Government Services Administration,Ashbritt, Bechtel, W.G. Yates& Sons Construction Company, andthe U.S. Army Corps of Engineers. Thepurpose of the forum was to strengthenthe network of small business subcontractorsavailable to work with the largerfirms participating in the recovery. Themeeting produced results; for example,W.G. Yates & Sons Construction Companycommitted to awarding 70 percentof its subcontracts to Mississippi-basedbusinesses and/or minority-owned businesses.MDA is conducting and schedulingsimilar meetings with small and minority-ownedbusinesses.The Mississippi Gulf Coast Cham-ber of Commerce is matching businessneeds with resources. Recognizing thatneeds vary with location, the Chamberhas created a business questionnaire toidentify the needs of businesses in eachcommunity.The Governor’s Commission is consideringtwo buildings for use as businessincubation centers, and in the nearfuture, the Commission may host networkingevents for business owners tointeract with each other.2004 Mississippi businessesFirms with fewer than 20 employees make up the vast majority of businesses in almost every sectorexcept government. A snapshot of 2004 Mississippi businesses by sector shows:Sector No. of Units Units w/

96 | SMALL BUSINESSPrior toKatrina, smallbusinessesowned bywomen andminoritieswere growingat a fast clip.Growth between 1997 and2002 in businesses owned by:■ Women: 23%■ Hispanics: 34%■ African-Americans: 42%■ Asians: 22%Source:U.S. Department of Labor, Bureauof Labor Statistics.RecommendationsResearch and discussions with smallbusiness employers and employees ledto the following recommendations,some of which transcend business-onlystrategies and include proposals forstrengthening the stability of regionalinfrastructure and social services. Becausesmall businesses are closely connectedto the health of communities,they are especially sensitive to changesthat affect the security and the qualityof life of all citizens.Create a Mobile Small BusinessEmergency Recovery CenterThe energizing tax incentive plan approvedby Congress must be publicizedto small businesses. A clearinghouse forall business support assistance can teamresources with businesses in need. TheCenter should be located in a mobilevan capable of going on-site in the mostdevastated areas, bringing the resourcesto the business owner/manager insteadof making the business come to the appropriateresource.On board should be representativesof appropriate federal, state, and localagencies supporting small business, withwireless Internet and satellite capabilityso applications can be completed on-site.The Detroit Metro Chamber donatedsuch a mobile communications centerto the Mississippi Gulf Coast Chamberto use after Katrina. The Coast Chamberis making this mobile communicationsvan available to any small business.The van can be used as a mobile SmallBusiness Emergency Recover Center,and area Chambers of Commerceshould help coordinate the site visitsthroughout the hurricane-affected area.The primary expense will be towingthe mobile center and should be paidfor by area Chambers of Commerce ifgrant money is not available.Prepare and Continually Update aSmall Business Survival KitKatrina taught that the best way forsmall business to recover is to be far betterprepared before the disaster strikes.Using the American Red Cross’Emergency Preparedness Kits for theWorkplace as a model, MDA and areaChambers of Commerce should assemblea complete Small Business SurvivalKit that can be provided at minimal costto every small business owner/managerbefore disasters occur. If this kit hadbeen in place before Katrina, manyproblems faced today by small businessowners would have been avoided, andthey would have been far more preparedto recover after the tragedy.The Commission recommends thatthese kits be used as templates to bemodified with all local emergency informationand then, using the mobilecenter above, distribute them to thebusiness community.Create the Position of SouthMississippi Small BusinessEmergency Preparedness Directorand Establish the Mechanism toFund the Position PermanentlyJust as MEMA works throughout theyear – coordinating with federal, stateand local agencies as part of a comprehensiveemergency management team– to prepare the population for disastersand their recovery, an emergency managementagency and director for smallbusiness should be created. The directorshould not be affiliated with an existingagency with other responsibilities;he or she must be able to devote timepreparing and updating Small BusinessSurvival Kits, giving presentations andworkshops throughout South Mississippi,and working closely with all federal,

THE GOVERNOR’S COMMISSION REPORT | 97state and local business organizationsand agencies to be aware of all smallbusiness assistance.This director should work withChambers of Commerce in the regionto set up classes and training programs.Once the Coast Chamber returns topermanent offices, the mobile communicationscenter donated by the DetroitMetro Chamber should be madeavailable as a Mobile Business ResourceCenter and rotate from among communities,making it easy for business ownersto visit the site, receive Survival Kits,ask questions, and generally preparetheir businesses for the future disasters.The position may be created witha grant from an existing disaster reliefprogram, but the Mississippi Legislatureor local county governments shouldcreate a mechanism to fund the positionpermanently.Secure an Updated Populationand Business CensusesMarket data is critical to small business,including population data from thePopulation Census conducted every 10years, and business data from the Censusof Business conducted in years endingin 2 and 7. Prior to Katrina, an abundanceof good population and businessdata was available, but with severalneighborhoods completely obliterated,and populations shifted or displaced,existing data has limited use. Recoverywill require accurate data, and developersconsidering the market will requirefeasibility studies with better informationthan those currently available. TheUnited States Department of Commerceshould conduct an off-year populationcensus and an off-schedule businesscensus in 2006. The business censuswould be updated as scheduled in 2007,but data from the national Census ofBusiness usually takes two years to becomeavailable at the county and metrolevels. These two, off-schedule censuseswould be taken only for the MississippiCoast and, therefore, data should beavailable more quickly.Create a Cellular Phone DirectoryServiceKatrina highlighted the reliance onwireless communications, especiallyin the hours and days following a majordisaster. Unfortunately, no cellularphone directories exist. Cellular carriersshould create a pool of numbersthat can be accessed after an emergency,with appropriate privacy protections inplace. Of course cell customers shouldhave the option to be excluded fromthe directory assistance program, butthe ability to call an information linefor those cell numbers in an emergencywould ease some of the desperation followinga catastrophe.Create Business ImprovementDistrict AuthoritiesTo encourage small businesses to locatein city centers and to follow theapproaches advocated during the MississippiRenewal Forum, local munici-Katrinahighlighted thereliance onwirelesscommunications,especially in thehours and daysfollowing a majordisaster.

98 | SMALL BUSINESSpalities, pursuant to legislative authority,should create Business ImprovementDistrict Authorities (BID) in each city.A BID is a publicly-sanctioned, yetprivately-directed organization, thatsupplements public services to improveshared, geographically-defined, outdoorpublic spaces. Such organizations subscribeto a self-help doctrine, wherebya compulsory self-taxing mechanismgenerates multi-year revenue. Bringingshoppers back to downtown – especiallyin the evenings – will revitalizedowntowns and help draw restaurants,art shops, and other attractions to theserevitalized business districts. The varietyof small business boutiques will also attracttourists downtown.Rebuild or Restore HistoricDowntownsLocal governments and the state legislatureshould encourage the restorationof historic buildings for commercialor private use to help maintain asense of place, as well as adding to thecharm of downtown. Using the BIDconcept to encourage downtown businessesand property owners to worktogether and revive historic elementslost in the hurricane will create an idealenvironment that attracts business – especiallydiverse, small retail, professional,and service businesses – and will attractresidents and visitors as customers. Anhistoric district will also establish aconsistent theme for new businesses tofollow. Revenue from BID assessmentsmay also be used to market historic anddowntown districts.Conduct a Retail Charrette toDevelop More Small RetailOpportunitiesThe research conducted in preparationfor the Mississippi Renewal Forumsuggested that South Mississippi is under-servedby retailers and too dependenton “big box” discount retailers.MDA should sponsor a retail charretteto develop a plan for attracting a morediverse retail mix to the Coast. Evenbusinesses not considered “small businesses”will create opportunities formore small businesses to support themand traffic to support the existing smallbusinesses near them.

THE GOVERNOR’S COMMISSION REPORT | 99Unemployment: The Katrina EffectFollowing is a comparison of South Mississippi’s employment levels by county for 2004 (annual averageemployment), August 2005 (last full month before Katrina) and October 2005 (most recentmonth reported by MDES):County 2004 Annual Average August 2005 October 2005Forrest 33,900 33,780 32,020George 7,820 7,650 6,630Hancock 19,630 19,500 14,230Harrison 87,620 87,030 81,840Jackson 57,640 59,780 48,870Pearl River 20,810 20,860 18,990Stone 6,530 6,480 4,730Mississippi 1,248,100 1,253,500 1,175,800Source: MDESMeanwhile, according to the October 2005 employment date released by the MDES, unemploymentis at record levels across South Mississippi:Hancock Co. 24.3% George Co. 9.7% Forrest Co. 7.3%Harrison Co. 24.0% Pearl River Co. 16.5% Mississippi 9.6%Jackson Co. 17.4% Stone Co. 12.2% U.S. 4.6%Source: MDESSOURCES:Small Business Profile: Mississippi 2002 Report from the U.S. Small Business Administration.Employer Firms, Establishments, Employment, Payroll, Annual Receipts by Firm Size and State, 2002 U.S. Dept. of Commerce.Mississippi Development Authority.Mississippi Department of Employment Security.

100 | AGRICULTURE, FORESTRY, AND MARINE RESOURCESAGRICULTURE,FORESTRY,AND MARINERESOURCESThe numbers associatedwith losses to agriculture,forestry, and marine resourcesfrom HurricaneKatrina illustrate the importanceof these industries to Mississippi.Recovery will cost billions. The effortwill take years. The natural bountyof the state and the enterprise of itscitizens, however, can return these economicdrivers to prominence with specificaid and actions as recommendedbelow.ForestryBetween 50,000 and 60,000 privatelandowners have forest damaged by thehurricane. Additionally, the state sustainedsubstantial losses to 16th Sectionforest lands, which generate revenue forlocal school districts, and losses werealso suffered in lands used as wildlifemanagement areas by the MississippiDepartment of Wildlife, Fisheries, andParks.The Commission is concerned thatthe tens of thousands of private, individual,and family forest landowners whowere severely affected will not continuegrowing timber because of the limitedability to recover or insure their investments.The programs described beloware necessary to restore the rural economy,a diversity of forest resources, andthe quality of life of South Mississippi.Further, regeneration of destroyed forestlands is imperative to the long-termviability of forest-related species of fishand wildlife, including threatened andendangered species, and the timbereconomy of Mississippi.Emergency Forest RestorationAssistance ProgramCongress recently approved $404.1

THE GOVERNOR’S COMMISSION REPORT | 101

102 | AGRICULTURE, FORESTRY, AND MARINE RESOURCESmillion for the Emergency ForestryConservation Reserve Program to assistnon-industrial private forest landownersand to assist the states reforestationefforts. To qualify for assistance underthis program, private non-industriallandowners should be required to:■ sign a contract with the MississippiForestry Commission agreeing toimplement a reforestation and forestmanagement plan prepared bythe county forester or prepared by aregistered forester and approved bythe county forester;■ show a loss, caused by HurricaneKatrina, of 35 percent or more ofmerchantable timber;■ own a tract of forested land of at least20 acres prior to the declaration ofthe Presidential Disaster Area.Oversight of the requirements shouldbe provided by county foresters. Uponapproval, landowners would be eligibleto receive 60 percent of the value oftrees lost as a direct result of HurricaneKatrina. Half of the total compensationdue would be paid to the landowner upfront and the other half would be paidafter completion of the terms of the reforestationplan, which must be completedby March 31, 2010. Compensationwould be subject to a $250,000limit and be tax exempt. The $250,000limit, however, will not apply to 16thSection school trust lands and otherqualifying state lands.Additional Reforestation ProgramsTo provide further incentive programsto assist the state and privatelandowners, the Commission recommendsthe following proposals. To createa reforestation program for 600,000acres, we suggest the federal governmentprovide:■ $100 million to fund the HealthyForests Reserve Program, a programwithin the Natural Resources ConservationService, to restore 160,000acres. The program can provide thegreatest benefit to the private landownerby allowing the land-ownerto utilize cost-share to restore theforests and utilize an easement paymentto help offset income loss.■ $10 million to the Department ofthe Interior’s Fish and Wildlife’sPartners for Fish and Wildlife Program,to restore 30,000 acres.■ $10 million to the Farm ServiceAgency’s Tree Assistance Program,to restore 30,000 acres. Utilizing thefunds appropriated for this program,adequate funding would be dedicated,with waiver of the cost-sharingrequirement, for the reforestation of16th section school lands.■ $10 million to the Landowner IncentiveProgram, a program of theMississippi Department of Wildlife,Fisheries, and Parks, to restore30,000 acres.■ $15 million to the Forest Land Enhancement/StewardshipProgram, aprogram of the Mississippi ForestryCommission, to restore 50,000acres.■ $6 million to fund the EmergencyRestoration Tax Credit Program, anew program which should be authorizedby Congress for natural disasters.The funding would go to theMississippi Forestry Commissionand the Mississippi Department ofWildlife, Fisheries, and Parks to restorean estimated 300,000 acres.Emergency ReforestationTax CreditThe Commission recommends thatCongress enact federal income tax cred-

THE GOVERNOR’S COMMISSION REPORT | 103its, similar to successful programs usedin Mississippi and Texas, as an incentivefor private investment for the reforestationand wildlife restoration in countiesdesignated as Presidential Disaster Areas.The program would be administeredthrough the U.S. Department of Agriculture,Forest Service’s State and PrivateForestry Division and implemented bythe state Forestry Commission and stateFish and Wildlife Foundation. Underan agreement with the landowner, theappropriate state agency would providevoluntary technical and financial assistancefor up to five years to help restoreforests and fish and wildlife habitat onthe property through the proposed taxcredit based program. Any individual,group or association would be eligibleto participate in the program.To be eligible for the tax credit, alandowner must have a restorationplan prepared for the eligible tract bya registered forester or certified fish orwildlife biologist. The forester or biologistwould certify, in writing, that theconservation practices were completedand the conservation plan followed. TheU.S. Forest Service, in consultation withthe state forestry and fish and wildlifeagencies, would determine the eligibleactivities, which could include: forestrestoration and debris removal, controlor eradication of invasive species, sitepreparation, tree planting, direct seeding,firebreaks, restoration of hydrology,restoration of wildlife habitat and corridors,fencing for habitat protection,removal of barriers for aquatic species,stream bank stabilization, restorationof threatened and endangered specieshabitat and corridors, and restoration ofrivers and streams.The Commission recommends thatany eligible owner who incurred costsfor approved restoration practices oneligible lands be allowed a tax credit, inan amount equal to the lesser of 75 percentof the actual costs of the approvedconservation practices or 75 percent ofthe average cost of approved practicesagainst the taxes imposed for the taxyear in which the costs are incurred.A landowner would be eligible for upto $50,000 of tax credits per year for amaximum of three years after the presidentialdeclaration with any unusedportion of the credit being eligible tobe carried forward in succeeding taxyears. The Commission also recommendsa similar restoration tax creditfor homeowners limited to $1,500 peryear for three years to help restore urbanand community forests.Invasive Species ControlHurricane Katrina spread invasivespecies of plants into the damaged forestsof South Mississippi. In areas withsevere wind damage, the removal ofthe forest canopy would dramaticallyincrease available sunlight reaching theunderstory and encourage an explosionof many highly invasive species. Withoutaggressive action, it is extremelylikely that these species will “capturesuccession” across thousands of acresand prevent reestablishment of nativeforests across ownerships, including anarray of ecologically and economicallysignificant public and private lands. Itis highly likely that the movement ofheavy equipment through infested areaswill exacerbate the spread of cogongrass,an invasive grass spread by windblownseeds and underground creepingrhizomes.The Commission recommends a $30million congressional appropriation tofund the Environmental Quality IncentivesProgram (EQIP) or to provide adirect EQIP appropriation to the Mis-Hurricane Katrinaspread invasivespecies of plantsinto the damagedforests of southMississippi.

104 | AGRICULTURE, FORESTRY, AND MARINE RESOURCESsissippi Department of Agriculture andCommerce (MDAC) to treat 90,000acres infected with cogongrass, a selectnumber of other species, and to controlgiant salvia, Chinese tallow trees, privethedge, and Japanese climbing fern inthe Presidential Disaster Area.Forest-Associated Wildlifeand Fisheries ResourcesHurricane Katrina caused injury notonly to the forest plant life, but also toanimals that will suffer due to habitatdestruction. Threatened or endangeredspecies, such as the gopher tortoises, redcockadedwoodpeckers, gopher frog,yellow blotched map turtle, ringed sawbackturtle, and bald eagle have sufferedsubstantial habitat damage. Although thetotal negative impacts of this storm areincomprehensible, an opportunity existsto restore habitat for bobwhite quailand providing additional economic opportunityfor regional tourism.The Commission recommends a $10million congressional appropriation tofund the Wildlife Habitat IncentivesProgram (NRCS) for species injured bythe destruction to the forests caused byHurricane Katrina.Fire PreventionAs a result of the hurricane, theamount of debris available for fuelinga wildfire is 10 to 20 times the normallevels in South Mississippi, increasingthe potential for fire hindering firefighting efforts. Wildfires occurring inthe damaged areas, therefore, will burnmore intensely and rapidly. Additionally,the opening of the canopy by HurricaneKatrina will cause native vegetationto grow excessively, adding to thedangerously high fuel levels across thearea. Existing fire lanes and forest roadsare now blocked with debris, and manypublic roads have only small open lanesnot wide enough for fire units.The Commission recommends a $60million congressional appropriation tofund the Mississippi Forestry Commission’sState Fire Assistance/HazardMitigation Program and to provide assistanceto local volunteer fire departments.The acquisition of additional firefighting equipment, contract fundingfor water drop capability with helicoptersand/or small aerial tankers, morewater handling capability in the formof slip-on pumper units, larger wildlandfire engines for ground attacks, and additionalpersonnel and training to staffthe units, are all required. Moreover,further mitigation activities are necessarybecause dead timber will take yearsto deteriorate to where it no longerposes a significant fire threat.Timber Sales/SalvageLogging/Storage Yards. The unsurpassedvolume of downed timber inthe affected areas has created complexissues. The amount of available downedand damaged timber quickly saturatedthe market, impacting timber pricesstatewide. It is anticipated that industry-ownedlands and large land holdingswill be harvested first, leavingthe small private, non-industrial forestlandowners with timber that cannot besold. Shipping distances, increased fuelcosts, logging restrictions, reduced efficiencyof harvest, availability of loggers,housing for loggers, insurance limitationson loggers, weight limits, and lackof rail transportation are other factorsaffecting the success of harvesting thedowned timber.The Commission recommends thatthe U.S. Department of Agriculture,Forest Service Economic Action Programbe funded with $4 million to assistloggers with fuel, housing, and thedevelopment of wet storage yards.Salvage Income Tax Exemption.While much of downed timber willhave little value due to splintering of thelogs, prompt salvage is needed to capturevalue and prevent future insect andwildfire outbreaks. The Commission

THE GOVERNOR’S COMMISSION REPORT | 105supports efforts to ensure the preservationof salvaged wood for future manufacturingby a process termed “wet storage.”The forest products industry andsmall wood dealer businesses have actedquickly to expand the capacity of wetstorage yards to keep salvaged timberviable for utilization for as long as twoyears and increase the value recoveredin salvage operations for landowners.The Commission recommends thatincome derived from salvage cuts in theaffected areas be exempt from federalincome tax of up to $2.5 million foreach landowner who has filed reforestationplans by 2010. The capital gain taxalso should be limited to 5 percent or10 percent of the value of the salvagedtimber. The Commission also recommendsthat an additional incentive allowlandowners to avoid taxes on salvageincome by reinvesting in qualifiedreplacement property, including the costof restoration and reforestation.Casualty Loss Reform. While somelandowners can write off losses on federalincome tax returns, many landownersaffected by Hurricane Katrina havelittle or no basis in timber to providethis option. Long-term landowners andthose who received gifted propertypresumably have little unused basis in it.The Commission recommends a casualtyloss be allowed for these landownerswhen filing federal income taxes, whichwould allow a loss to be taken on somepercentage of market value prior to thedisaster, rather than on basis. The programwould provide a set rate per unitdestroyed and a requirement for professionalappraisal to help prevent fraud.Infrastructure and Public SafetyInfrastructure. In Mississippi, the forestproducts and agricultural industriesmust rely on safe and well-engineeredAn essentialproject is theconstruction ofMississippiHighway 15from the Coast,north to theTennesseestate line. Thisroad willsupport thegrowth of theregion andprovide acriticalhurricaneevacuationroute.road systems to transport products tomarkets and maintain their global competitiveness.New highway constructionto encourage economic developmentand extensive repairs to damagedroads and bridges in South Mississippiare now necessary. An essential projectfor Mississippi is the construction ofMississippi Highway 15 from the Coast,north to the Tennessee state line. Thisroad will support the economic growthof the region and provide a critical hurricaneevacuation route.The Commission recommends thatMDOT implement the following:■ Construct a bypass for Highway 98that will allow traffic to flow southand west of Hattiesburg. Currently,through traffic must travel through acongested urban area, passing retail,commercial, and residential areas.■ Construct a four-lane highway connectingMobile, Ala., with McComb,Miss., thereby creating the “Mobileto McComb Highway.” (Route detailsin the full committee report onwww.governorscommission.com.)■ Widen U.S. Highway 26 to fourlanes from Lucedale west to the PearlRiver Bridge near Bogalusa. Thisroute is a major highway, with heavytruck traffic that has significantly increasedover the past 10 years. Everyday, 450 to 600 loads of forest-relatedproducts travel to various Mississippiand Louisiana mills betweenWiggins and Bogalusa.■ Widen U.S. Highway 589 to fourlanes from Seminary, adjacent toU.S. Highway 49, south to I-59 atthe Purvis exit. This route wouldprovide a safer route and relievetraffic on the north and west sidesof Hattiesburg.Public Safety. Hurricane Katrina hascreated a significant need for the federal

106 | AGRICULTURE, FORESTRY, AND MARINE RESOURCESAgriculture, Forestry, and Marine ResourcesMississippi’s stake in agriculture, forestry, and marine resources is enormous.Forestry and AgricultureBefore Katrina:■ Forestry and forest products had an annual economic value of $13.4 billion. 1■ A total of 130,000 people, 10 percent of the state’s workforce, worked in the forestry industry. 2■ The state had more than 5,000 tree farms, the most in the United States; private, non-industrial landowners owned 69percent of the state’s 18.6 million acres of timberland. 3■ The poultry industry, the state’s largest agricultural industry, had a production value of more than $2.1 billion in 2004;the state’s seven integrator companies contract with 2,000 producers with 7,500 total poultry houses growing almost 840million birds annually.■ Mississippi’s dairy producers had revenues of $63 million in 2004.Marine Resources■The total economic impact of the state’s commercial seafood industries in 2003 was over $900 millionwith 17,000 employed. 4■ Recreational fi shermen in 2004 took over one million trips from the Coast with an economic impact of $170 million. 5■■■■■In 2004, about 184 million pounds of seafood entered Mississippi ports with a value of approximately $44 million to thefi sherman and a total value exceeding $450 million.Prior to Katrina, 35 processing plants in the state and 29 wholesale operations employed 2,700 people.The shrimp industry alone is estimated to have an annual economic impact of $200 million to $250 million.Before the hurricane, there were 500 shrimp vessels employing more than 1,600 individuals.Menhaden landings in 2004 were close to 159 million pounds valued at $9.5 million.Hurricane Katrina’s damage to these industries was staggering.Sample estimated losses in key industry sectors:■ $6.3 billion in long-range recovery impact, commercial seafood and marine resources■ $2.2 billion total, agriculture and forestry 6■$1.3 billion, timber■ $144 million, row crops 7■ $102 million, catfish farmers 8■ $70-95 million, beef cattle industry equipment 9■ $21 million, dairy 10■ $17-19 million for nurseries, fruits, and vegetables 111Mississippi State. Mississippi Forestry Commission; Mississippi Forestry Association. A Response, Recovery, and Renewal Plan for Mississippi’sForest Resource. 19 Oct. 2005: 2.2Mississippi Forestry Association. http://msforestry.net/.3Mississippi Forestry Association. http://msforestry.net/.4Walker, William W., Ph.D. Expert Views on Hurricane and Flood Protection and Water Resources Planning for a Rebuilt Gulf Coast. Testimonybefore United States Houseof Representatives Subcommittee on Water Resources and Environment. 20 Oct. 2005: 2.5Walker, Expert Views 2.6Lester Spell, Jr., D.V.M., Preliminary Assessment of Damages to Mississippi Agriculture and Forestry from Hurricanes Katrina and Rita. 30Sept. 2005: 1.7Spell, Preliminary Assessment 4.8Spell, Preliminary Assessment 5.9Spell, Preliminary Assessment 5.10Spell, Preliminary Assessment 5.11Spell, Preliminary Assessment 7.

THE GOVERNOR’S COMMISSION REPORT | 107interstate weight limits to be amendedto address safety issues and the increasedhauling needs of the forestry industry.States have long set weight limits for theirroads and highways. With the advent ofthe Dwight D. Eisenhower System ofInterstate and Defense Highways (the“interstate system”), the federal governmentestablished its own weight limitsfor interstate highways, allowing a grossweight tolerance of 84,000 pounds. Asignificant number of states, not includingMississippi, have received variousexemptions from the interstate highwaylimits. On state roads, Mississippi allowsa 5 percent gross weight tolerance or84,000 pounds gross weight and no axlelimitations with the applicable harvestpermit. As a result of the greater stateroad weight limits, larger trucks arerequired to traverse smaller congestedstate roads, rather than the more efficientand safe interstate routes.The Commission, with support froma coalition of forestry and agriculturalorganizations, including the MississippiForestry Association, the MississippiLoggers Association and the AmericanLoggers Council, recommends that thestate obtain a federal exemption allowingfor forestry and agricultural commoditiesto be hauled on interstatehighways with state weight limits andrestrictions. The exemption would shifta substantial amount of existing tripmileage from two-lane secondary roadsand state highways to interstates, resultingin fewer trips and much improvedpublic safety. (Suggested enabling legislationis contained in the full committeereport at www.governorscommission.com.)Insects and Diseases. Before HurricaneKatrina, approximately 70 millionacres of public and private landsnationwide were at serious risk fromA research andeducation programmust bea fundamentalcomponent tothe rebuildingeffort and willprovide theguidance foreffectiverecovery.26 different insects and diseases, mostof which are non-native, with $137 billionspent annually in control measures.Considering the threat of the southernpine beetle and the black turpentinebeetle to already stressed coastal forests,the Commission recommends $2 millionbe appropriated to the USDA ForestService’s Cooperative Lands ForestHealth Management Program.Damage Assessment. Initial damageassessments have provided an overallview of forest damage in Mississippi.Additional assessments are needed toprovide detailed information to forestindustry and land managers on the resourcebase and recovery options. Theseassessments must take place soon toensure maximum resource utilizationand to assist the industry in operationaldecisions. The additional monitoring ofrecovery efforts is needed over the longterm to ensure restoration of the resourcebase needed for future industrialoperations. The Commission recommendsthat the Mississippi Institute forForest Inventory receive $2 million andthe USDA Forest Service receive an additional$1 million to assess wildlife,fisheries, wetlands, scenic and naturalareas, hunting and fishing losses, tourismpotential, and related topics.Forest Resources Assessment, Researchand Education. A research and educationprogram must be a fundamentalcomponent to the rebuilding effort andwill provide the guidance for effectiverecovery. Programs developed throughresearch and education will demonstrateto local communities their optionsfor building a new Mississippi forest,one designed to accomplish specificobjectives for economic developmentand restoring the environment.The faculty and staff at MississippiState University’s College of Forest Resources,the Forest and Wildlife ResearchCenter, and Alcorn State University’sSmall Farm Development Center andthe Extension Program have the expertiseand are prepared to provide leadershipthrough research and education toaddress the long-term restoration of thestate’s forestry resources.The Commission recommends utilizing,in the designated PresidentialDisaster Areas, Mississippi State University’sCollege of Forest Resources andForest and Wildlife Research Centerto: 1) assist the recovery and restorationof Mississippi’s forest, wildlife, fisheries,water, and aquatic resources; 2) assist inthe rebuilding and expansion of Mississippi’sforest products and outdoorbased recreation and tourism industries;3) evaluate and assist in recovery of theeconomic and rural social infrastructure;4) develop rapid damage detectionprotocols for natural disasters; 5)develop current geospatial and decision

108 | AGRICULTURE, FORESTRY, AND MARINE RESOURCESsupport systems for industrial and communityuse of our restored resources; 6)evaluate and assist in developing policiesregarding recovery of the naturalresources and the resiliency for futurenatural disasters; and 7) to assist small,disadvantaged farmers and communitiesaccess available resources.The Commission recommends acongressional appropriation of $10 millionto fund the assessment, researchand educational efforts.AgricultureRow Crop FarmingThe high fuel costs and crop damageresulting from Hurricane Katrinahas made 2005 the most expensive cropproduction year in Mississippi history.Row crop farmers face unprecedentedchallenges, including rising productioncosts and limited access to appropriatefinancing. Farm loans are increasinglydifficult to obtain with low commodityprices, global competition for markets,and urbanization. With these currentfarm economic conditions, the stateshould enact programs to enable farmersto remain competitive in today’s marketthrough tax credits, cost-share programs,low-interest loan programs, and expandedinsurance programs. States suchas Texas, Nebraska, Oklahoma, NorthDakota, Missouri, and many others haveinitiated similar, successful programs. Asa result, the Commission recommends,of the following programs in the designatedPresidential Disaster Areas:■ Low-interest loans and cost-shareprograms. These programs shouldbe available to help with workingcapital, the purchase of machinery,or the acquisition of renewablefarmland. In 1992, the MississippiLegislature passed, but neverfunded, a guaranteed loan programfor beginning farmers. Recognizingthe existing need, the Commissionsupports its funding.■ Expansion of national agriculturalinsurance programs. Expansion ofthe federally backed agriculture insuranceprogram would be helpfulnot only to Mississippi but also toother agriculture producing statesby broadening insurance coverage

THE GOVERNOR’S COMMISSION REPORT | 109to a greater number of counties andfood crops, including fruits, vegetables,nuts and others. For crops thatare ineligible for the federal cropinsurance programs, the producers’only option is participating inthe USDA’s Farm Service Agency’sNon-Insured Assistance Program,which provides only minimal orcatastrophic risk protection whenlow yields, loss of inventory, or preventedplanting occur due to naturaldisasters. In the case of disaster, theprogram covers the amount of lossnot greater than 50 percent of theexpected production, and the paymentis based on 55 percent of theaverage market price of the specificcommodity. Only about 50 percentof Mississippi’s commercial foodcrop producers are currently enrolled.Other pilot programs shouldbe enacted to cover various otherfood crop producers to allow themto recoup losses.■ Tax credits. In Nebraska, tax creditsare offered for retiring farmerswho lease or sell land to existing oryoung farmers in order to sustainthe agriculture land base already inproduction. Landowners receive arefundable tax credit equal to 5 percentof the amount of rent receivedeach year, for three years, on eachrented asset leased to individuals inthe farm sector. Also, farm incometax credits prompted when farmdiesel and gas reach predeterminedlevels could benefit farmers tremendouslyin years of excessive energyexpense. The Mississippi Legislatureshould authorize similar tax creditsfor Mississippi farmers.■ Development of alternative fuelplants. With new national opportunitiesin alternative energy, rowcrop farmers could help sustain biodieseland ethanol production plantswithin the state. Technology suggeststhat if on-road diesel fuel contained1 percent bio-diesel, it would utilize250 million bushels of soybeans, increasingprices at least $0.35/bushel,and add more than $900 million tothe gross farm income. Consideringthe increased production of bothforms of fuel and the state’s proximityto large fuel usage markets, productionof these alternative energyforms should be further analyzed bythe state.■ A crop disaster direct payment program.Congress should authorizea supplemental direct paymentto producers in disaster countiesthrough existing farm bill mechanisms.Eligible Mississippi row cropfarmers should receive the followingthrough direct payments: $89.2million for cotton farmers, $19.075million for rice farmers, $17.4 millionfor corn farmers, $18 millionfor soybean farmers, and $190,000for grain sorghum farmers. Thiswould provide quick assistance torow crop producers in Mississippi.■ Land, Water and Timber ResourcesAct. The Mississippi Land, Water &Timber Resources Act is designedto assist value-added, agriculturalprojects in the initial startup costs.Since the program’s inception in2000, nearly $30 million has beeninvested in 41 projects. It has provedinvaluable in creating new and variedopportunities for Mississippifarmers and landowners. Extendingand expanding funding for the MississippiLand, Water & Timber ResourcesBoard will stimulate futuredevelopment and provide differentavenues from which our farm sectorhas been absent.■ Mississippi Development Authority’sAgriculture Business Loan Program.This program was developed inthe late-1980s to help agriculturalproducers add value to their cropthrough working capital purchases.Prior to the hurricane, the programwas financially stressed. Expansionand increased funding is necessaryto encourage investment. Congressrecently approved $200 million forthe Emergency Conservation Program(ECP) to rehabilitate farmlanddamage caused by natural disastersand $300 million through the EmergencyWatershed Program (EWP) toremove debris, repair structures, andreshape and protect eroded land.PoultryThe poultry industry, Mississippi’slargest agricultural industry, faces unprecedentedeconomic and environmentalchallenges. To address them, theCommission recommends:Direct Compensation. Based uponestimates from Mississippi State University’sPoultry Science Department,direct compensation through USDAgrant sources is needed to offset the followingcategories of losses:■ Fuel. The Commission and theMississippi Poultry Association estimatea need of $6.32 million tooffset one-time additional costs offuel resulting for electrical powerloss during times of high temperatures.Of the 7,500 poultry housesin the state, 4,388 will likely requirethe assistance. FEMA grants may beavailable to fund this program.■ Income interruption. The Commissionand the Mississippi PoultryAssociation estimate needs of$1.61 million in income interrup-

110 | AGRICULTURE, FORESTRY, AND MARINE RESOURCEStion assistance for producers. Theamount is based on the loss of 6million birds, averaging a weight of5.5 pounds, at a loss of 5 cents perpound. USDA may be an availablefunding resource.■ House damage and loss. While almostall producers have some formof insurance on their poultry houses,due to tax depreciation, manyfarmers will not receive insurancepayouts that approximate their reconstructionor repair costs. TheCommission supports the implementationof a cost-share assistanceprogram that would help rebuildpoultry houses after insurance settlements,in addition to low-interestdisaster loans for the producer.USDA grant opportunities may existto fund this program.Advancing environmental issues. MississippiState University and the Land,Water, & Timber Resources Board areconducting research and demonstrationprojects that address problems associatedwith litter disposal. Considering the importanceof the industry, a priority mustbe placed upon finding effective methodsfor disposal that are environmentallysafe, non-offensive to the public,and practical to the farmer. Additionally,the state Department of EnvironmentalQuality is studying a project funded bythe Land, Water and Timber ResourcesBoard that involves installing an on-thefarmanaerobic digester to turn poultrylitter into methane gas, thereby eliminatingodor concerns.Accelerating port redevelopment. Thestate should immediately rebuild thecommercial components of the portfacilities in Pascagoula and Gulfport,which shipped more poultry to Russiathan any other port in the United States.Prior to rebuilding the ports, temporaryPoultry—Mississippi’slargestagricultrualindustry—facesunprecedentedeconomic andenvironmentalchallenges.freezer facilities must be secured and installedto allow Mississippi products tobe exported to world markets.Mississippi replacement tax relief.The industry standard tax on replacementparts is 1.5 percent. While Mississippi’stax is 1.5 percent on start-uppurchases, replacement parts are taxedat 7 percent. To assist poultry farmers inreplacing parts and machinery damagedor destroyed by Hurricane Katrina, thestate legislature should lower the statetax on such replacement parts and servicesto the industry standard.Beef and Dairy CattleFEMA assistance. An estimated 175dairy farms sustained $8 million inequipment, materials, labor, and dumpedmilk losses. It is estimated that farmersspent approximately $437,500 overnormal operational expenses for energycosts alone. The Commission recommendsthat FEMA assistance be securedto reimburse these dairy producers forup to 100 gallons of diesel fuel per day.Due to milk being considered a “criticalfood,” Louisiana dairy farmers receivedthe payments, and Mississippi dairyfarmers should be similarly reimbursed.Dairy Disaster Assistance Program.Another substantial source of incomeloss caused by Hurricane Katrina todairy producers was the dumping ofmilk because producers were unable tokeep it cool or transport trucks were incapableof accessing the farms.Throughout South Mississippi, grazingopportunities for the fall have beenlost due to the loss of fencing, lack ofresources to plant rye grass, and reducedgrazing capacity because of drought.Moreover, some winter feed supplieswere destroyed by hurricanes, and earlyuse of hay and silage supplies will createa short supply. As a result, fall graz-

THE GOVERNOR’S COMMISSION REPORT | 111ing will be minimal, thereby furtherlimiting production. The Commission,therefore, recommends federal funding,which could mirror the provisionsof the dairy disaster assistance programset forth in the Military ConstructionAppropriations and Hurricane SupplementalAppropriations Act of 2005, asfollows: (1) farmers should be eligiblefor 50 percent of repair or replacementof uninsured losses to dairy operationsstructures at an assistance level not toexceed $250,000; (2) $1.5 million to assistdairy farmers in covering productionand spoilage losses; and (3) $13.6million to assist dairy producers withprolonged production decreases andexcessive costs incurred over the next12 months due to hurricane damage.Livestock Assistance Program. Feedshortages will be experienced throughoutMississippi in the coming months,causing farmers to incur increased coststo purchase feed. In order to partiallyrecover Mississippi livestock producerfeed losses, the Commission recommendsfederal funding in the amount of$17 million for the livestock assistanceprogram, which could mirror the provisionsof the dairy disaster assistanceprogram set forth in the Military ConstructionAppropriations and HurricaneSupplemental Appropriations Actof 2005. The program will allow producerswith 30 percent grazing/feedloss due to the hurricane to qualify fordirect payments.Catfish FarmingThe catfish industry has also beenaffected by Hurricane Katrina. Theweather conditions damaged the leveesused to ring the ponds and fostered thedevelopment of columnaris, a parasiticcondition facilitated by stress-inducedfactors. Farmers had difficulty in aeratingtheir ponds in the hot conditionsfollowing the hurricane. Other economiclosses were the result of increasedfuel costs to run generators and the inabilityof farmers to obtain feed. A totalof $17 million is required to addressthe needs of the catfish industry. TheCommission recommends that USDAappropriate supplemental funds to reimbursecatfish farmers for their lossessimilar to the previously funded CatfishFeed Assistance Program.Nursery Plants, Fruits andVegetablesIn large part, Mississippi’s nurseryindustry is located in the areas whichwere most severely affected by the hurricane.Significant portions of Mississippi’snursery sales are directed to localoutlets that have been temporarilyremoved due to hurricane damage. Asa result, the Commission recommendsthe following:■ Using the Nursery and TropicalFruit Producer Hurricane ReliefAct (H.R. 4031) to provide emergencyrelief to growers sufferinglosses from the hurricane. The Actcodifies the nursery disaster programimplemented in Florida due to theimpact of three hurricanes in 2004.Nursery producers in designatedPresidential Disaster Areas should besimilarly eligible to seek reimbursementof costs associated with debriscleanup and removal. The bill also includesa provision for a special inclusionin the Tree Assistance Programfor tree nursery growers, Christmastree growers, and tree seedling producers.■ Expanding provisions set forth inthe Florida Vegetable, Fruit andTropical Fruit Disaster Program authorizedwith Section 32 funds orreenacting it to apply to Mississippifruit and vegetable producers’ lossesattributable to Hurricane Katrina.Tree, Vine, and Bush CropsHurricane Katrina caused tremendouscrop production losses, resulting in a needfor replanting. These include productsproduced on a vine, tree or bushes, includingpecans, blueberries, muscadines,and peaches. An estimated $5.3 millionis needed to assist these growers.The Commission recommends that,through the Tree Assistance Program,authorized in the Farm Security andRural Investment Act of 2002, Congressprovide funds to assist producers. Underthis program, producers are eligiblefor assistance if they suffered at least 15percent mortality. Eligible producerscan be reimbursed for 75 percent of thetotal cost of replanting with maximumpayments of up to $75,000 under theprogram.Marine ResourcesHurricane Katrina dealt a devastatingblow to the beautiful MississippiGulf Coast, including its fish resourcesand industries and its highly productivecoastal marshes and estuaries. The entireMississippi coastline was subjectedto the most damaging portion of thestorm, being situated in the northeastquadrant.The Category 4 winds battered thecoastline for 12 hours, causing an unprecedentedstorm surge ranging from15 to 35 feet. The loss of fish and shellfishnursery habitat, fisheries-relatedjobs, and fisheries infrastructure, includingboat dockage, public access, and seafoodprocessing capacity will obviouslyhave a long-term adverse impact to thearea’s economy. Its economic impact,however, may be shortened with imme-

112 | AGRICULTURE, FORESTRY, AND MARINE RESOURCESdiate and decisive involvement of localcommunities and government support.The Commission, in cooperationwith several marine resource usergroups, supports a three-phase approachto improve Mississippi’s marine resourcesfor future generations.Phase 1 addresses immediate actionto restore marine resources as quickly aspossible. Phase 2 sets a rebuilding schedulefor up to five years for restorationof Mississippi’s natural storm defenses,flood control capacities, coastal habitats,and commercial and recreational fishinginfrastructure to pre-Hurricane Katrinalevels. Phase 3 consists of a long-rangeplan of up to 20 years to return Mississippi’smarine resources and water-dependentmarine resource industries topre-Hurricane Camille levels.The long-range goals address: restoringand creating essential marine habitats;improving living marine resources;providing conditions that will encouragea working waterfront for marineresource industries; and supportingresearch, education, outreach, and resourcemanagement of marine resourcesand water dependent industries.The total cost to rebuild Mississippi’smarine resources and water-dependentmarine resource industries to pre-hurricaneCamille levels is estimated to be$7.53 billion.The most pressing short-term needsof the marine resources and relatedindustries center on the needs of thecommercial and recreational fishing industries.The Commission estimates thecost to address the immediate needs setforth below at $1.2 billion. While manyof the Commission recommendationsset forth below have begun, it is imperativethat they be completed within thenext 12 months:Restoration of Infrastructureand ResourcesInfrastructure. The most immediateneed addressed by the Commission wasthe lack of the essential seafood infrastructureto support the industry andthe jobs it provided. Infrastructure wasdestroyed or heavily damaged, includingsupporting marinas, harbors, piers,and public launching facilities. Mostof the shore-side infrastructure for therecreational fisheries, commercial fisheries,and charter industries that providefuel, ice, and bait were similarly affected.They must be immediately rebuilt withfunds from public and private sectorsources, and they must provide for temporaryinfrastructure while long-termrebuilding efforts are underway.Debris removal. Numerous large fishingvessels remain aground in a varietyof locations, including marshes. Hurricane-relatedhazards to waterway navigationmust be removed. The Commissionrecommends that the United StatesCoast Guard and other federal agencieslead this effort.The establishment of seafood industrialparks. The Commission recommendsa joint government-private sector effort,with federal and state incentives, todevelop all-inclusive seafood industrialparks. The Commission recognizes onedeterrent to the development of seafoodparks is pressure on the coastal realestate market. Considering, however,the importance of a diversified economy,tourism, and overcoming environmentalconcerns, the state should, in amanner similar to other regions of thecountry, set-aside tracts of land to establishpublic and privately funded seafoodindustrial parks in Hancock, Harrisonand Jackson counties.Financial assistance to fishermen.Many commercial fishermen are notworking due to damage to their vesselsor the destruction of living marineresources. Some form of direct federalcompensation should be provided as aretention incentive.Restoration of oyster reefs, shrimpnursery areas, and other habitats. Mississippi’soyster reefs suffered catastrophicdamage, and important shrimp nurseryareas were similarly affected by the hurricane.The oyster reefs were damagedas a result of silting, sediment deposition,and scouring from the hurricanewaves. While the original reef structurebeneath the sediments is presumed intact,revitalization efforts combiningcultch deposition and turning over culturedoysters is needed to restore thereefs to their former levels of productivity.It is believed it will take at leasttwo years to revitalize the oyster beds.Federal funds should be used to restoreoyster reefs, shrimp nursery areas, coastalmarshes, and other estuarine habitats.The Mississippi Department of MarineResource should be lead this restorationalong with local partners such asthe Mississippi-Alabama Sea GrantConsortium, the Nature Conservancy,Coastal Conservation Association, thecharter boat industry and other localseafood and sportfishing organizations.Federal partners should includethe Army Corps of Engineers, NOAAFisheries, NOAA Restoration Center,Department of Transportation, EnvironmentalProtection Agency, and Fishand Wildlife Service.Protecting, restoring, and creating essentialecosystems. Hurricane Katrina’sdevastation reduced both the total acreageand function of Mississippi’s estuarineand vegetative wetland habitat.The Commission estimates the cost ofrestoring them at $2.2 billion. The decreasedarea and fragmentation has led

THE GOVERNOR’S COMMISSION REPORT | 113to a decline in the essential ecologicalfunctions provided by these habitats.The Commission supports the use ofthe Estuary Restoration Act of 2000,which calls for a national strategy witha goal of restoring 1 million acres of estuarinehabitat by 2010.Mississippi’s offshore barrier islandsinclude Petit Bois, Horn, Ship andCat Islands. This island chain, located12 miles south of coastal Mississippi,provides a natural first line of defenseagainst hurricanes and other tropicalstorm systems. Unfortunately, thesenatural barriers have suffered a series ofonslaughts – first by Hurricane Camillein 1969, which created a major cutthrough Ship Island; then by HurricaneGeorges, which breached Horn Island;and several years later by HurricanesIvan and Katrina, which caused furtherdamage. Hurricane Katrina alone destroyedover 2,000 acres on these fourislands and drastically reduced the functionalityof the remaining acres.Rebuilding should focus on restorationand enhancement of riverinefloodplains and near-shore resources.Specific activities include de-snaggingand streambed reconfiguring of sometributaries to our major river systems toreduce flood potential; to reclaim barrierislands, including Deer Island; andto restore coastal marsh habitats andbeaches. The Commission recommendsspecific restoration efforts including:■ Mississippi Department of MarineResources should coordinate a surveyof the current size of estuarinehabitat by using historical side-scansonar and conventional surveys todocument the pre-hurricane Katrinastatus of the state’s oyster reefresources and coastal preserves. Aerialsurveys of the coast’s marshlandscould provide similar measures forthe wetlands. The effort will resultin the specific areas where restorationshould be focused.■ The Mississippi Department ofMarine Resources will coordinatewith the U.S. Army Corps of Engineers(Mobile District) to restoreDeer Island to its 1900 footprintby reclaiming the recently created55 acres of marsh on the northeastend damaged by Hurricane Katrina,filling the “gap” created by previoushurricanes, and continuing restorationof additional marsh and beachacreages to essentially double thefootprint of Deer Island as it existstoday.■ The Mississippi-Alabama Sea GrantThe loss of fish and shellfish nurseryhabitat, fisheries-related jobs, andfisheries infrastructure, includingboat dockage, public access, andseafood processing capacity willobviously have a long-term adverseimpact to the area’s economy.Photo: © Linda Saxon Nix

114 | AGRICULTURE, FORESTRY, AND MARINE RESOURCESThe Fertile Fisheries Crescent ishome to a wide variety ofestuarine-dependent species, andan area that also supports some ofthe nation’s most productiverecreational and commercialfisheries.Consortium has received a grantto coordinate the development ofan adaptable estuarine habitat restorationplan which will describeand prioritize restoration sites. TheMississippi Department of MarineResources should take the lead inacquiring funding for coastal preserves,acquisition, and managementby the public and private sectors.■ Mississippi Department of MarineResources will coordinate the utilizationof bridge rubble from the Biloxi-OceanSprings and Bay St. Louisbridges to create reefs, erosion control,and wave attenuation structures.The Commission recommends thatthe Mississippi Legislature coordinatethe following three long-term restorationefforts, including:■ Restoring the Pearl River and tributariesfrom Jackson to MississippiSound; the Pascagoula drainage basinto Mississippi Sound; and otherMississippi Rivers and coastal watershedsto the Sound;■ Using the Mississippi Coastal AreaRestoration Initiative for restorationof mainland coastal marshesand beaches, including an estimated1,890 acres of coastal marshes andforests that were severely damagedor destroyed;■ Using the Mississippi and LouisianaCoastal Studies to guide theimplementation of water and siltdiversions, reduction in saltwaterintrusions, fisheries infrastructurerestoration, and related projects.Improving Living Marine ResourcesThe Mississippi Sound and the adjoiningwaters of the open Gulf ofMexico lie in an area long known byfisheries biologists as the Fertile FisheriesCrescent. Home to a wide varietyof estuarine-dependent species, the areaalso supports some of the nation’s mostproductive recreational and commercialfisheries. Specific Commission recommendationsto improve living marineresources, estimated to cost $1.84 billion,include:■ Rebuilding Oyster Reefs. Based onpreliminary resource surveys, over11,500 acres of productive oysterreef areas suffered extensive damagewith estimated mortalities rangingfrom 90-95 percent as a resultof silting, sediment deposition, andscouring from the waves generatedby Hurricane Katrina. The Commissionrecommends revitalizingreefs through a combination ofcultch deposition and turning overcovered oysters to restore these reefsto their former productivity levels.The Mississippi Department ofMarine Resources should take thelead in coordinating with the oysterindustry the rebuilding and creationof new oyster reefs using funds fromNOAA’s National Marine FisheriesService, the NOAA RestorationCenter, the Department of Transportation,U.S. Fish and WildlifeService, and state sources.■ Restoring Artificial Reefs. Mississippi’sinshore and offshore artificialreefs were extensively damaged bythe hurricane. The program createdartificial fishery habitat by placingderelict vessels, concrete rubbleand other structures at specific locationsin federal waters offshorefrom the state. The areas providedhabitat for numerous recreationaland commercial fish with an annualeconomic impact of approximately$80 million. They must be restored.Mississippi Department of MarineResources should take the lead incoordinating with the sportfishingindustry the rebuilding of artificialreefs using funds from NOAA’s NationalMarine Fisheries Service, theNOAA Restoration Center, TheDepartment of Transportation, U.S.Fish and Wildlife Service, state andlocal sportfishing organizations.■ Rebuilding the Sea Trout Hatchery.Mississippi’s spotted sea trout hatchery,a joint venture of the MississippiDepartment of Marine Resourcesand University of Southern Mississippi’sGulf Coast Research Laboratory,was completely destroyedby Hurricane Katrina and must berebuilt. The Mississippi Departmentof Marine Resources should takethe lead in coordinating with thesportfishing industry the rebuild-

THE GOVERNOR’S COMMISSION REPORT | 115ing of the Sea Trout Hatchery usingfunds from NOAA’s National MarineFisheries Service, Departmentof Transportation, U.S. Fish andWildlife Service, and state sources.■ Developing an EnvironmentallySustainable Marine Aquaculture Industry.Sustainable marine aquaculturetechnologies for marine finfishand molluscan aquaculture shouldbe developed to provide job alternativesfor the commercial fishingand other marine related industries.The Mississippi-Alabama Sea GrantConsortium will coordinate withthe Mississippi Department of MarineResources, state universities,and local constituents in the developmentof a sustainable marineaquaculture industry that is gearedtoward the development of jobsfor the seafood industries. Fundingshould be sought through NOAA.Establishing Conditions That WillEncourage a Working WaterfrontCultural Impact. The culture of theCoast, especially in Biloxi, has beenshaped to a large extent by shrimpers,oystermen, small boat builders, netmenders, and seafood processors. Thefamed Biloxi Schooner, a symbol recognizedthroughout the United States,was developed specifically to navigatethe shallow waters inside the barrierislands. Among the cultural resourceslost or significantly damaged as a resultof Hurricane Katrina were the recentlyrestored Ship Island Lighthouse;the Round Island Lighthouse near themouth of the Pascagoula River, whichwas undergoing restoration work;Beauvoir, the historic home of JeffersonDavis; the Old Red Brick House;Grass Lawn; Tullis-Toledano Manor;and the Church of the Redeemer. TheSeafood Industry Museum and the J.L.Scott Marine Education Center in Biloxiwere also destroyed.Inland Processing Plants. While thepressure on the coastal real estate marketis significant, it is still necessary toset aside some areas in Jackson, Harrisonand Hancock counties through zoningto accommodate the commercial fishingindustry. The Commission has alsostudied the possibility of establishingprocessing plants inland in industrialparks, but ambient air standards and waterdischarge issues would likely limitthe areas where such operations will beallowed. Further, with an inland facilitythe catch is not unloaded directly fromthe boat, rather it is loaded onto trucksand then driven to the inland facility,increasing cost and delivery time. Thereis land at the mouth of the PascagoulaRiver and along its banks that would beimmediately compatible with commercialfishing operations, including processingwith virtually zero populationdensity. There have been such operationsconducted off and on in this areafor decades, including E.G. Purina PetFood, Gulf Cities Fisheries, and ZapataHaney. While steps should be taken topreserve as much of the industry in existinglocales as is possible, new sites alsoshould be explored, so that the industrycan grow larger than it was before thehurricane.The Commission recommends thefollowing, which are estimated to cost$1.225 billion:■ Implement federal and/or statelegislation in support of a workingwaterfront. The Commissionrecommends that the state acquireproperty and designate it for publicaccess and for use by water-dependentindustries, including dockingand service facilities for Mississippi’scommercial and charter fishing fleet.Pascagoula’s Singing River Island,the current site of the homeport,is a potential all-encompassing site.There are also sites up the PascagoulaRiver in existing commercialareas that would be suitable for suchactivities and for growing supportingbusinesses. (Information aboutexisting laws, pending legislation,and proposed measures that addressthis goal can be found in the completecommittee report at www.governorscommission.com.)■ Congressional legislation to increasequotas for migrant workers to supportthe seafood processing industry.■ Implement smart growth practicesand adopt zoning ordinances to fostermixed-use development by thestate and local governments.■ Increase congressional funding forthe Department of Interior’s CoastalMississippi National HeritageProgram, which in 2005 receivedonly $250,000, to expedite the restorationof historical and culturalresources.■ Adoption by marinas of best managementpractices, including aClean Marina Program, which canimprove water quality.

116 | DEFENSE AND GOVERNMENT CONTRACTINGDEFENSE ANDGOVERNMENTCONTRACTINGAs with all physicalstructures on the Coast,Mississippi’s federaland private sector defenseand governmentservice facilities were severely damagedby Hurricane Katrina. Some weredestroyed. While estimates of physicaldamage are still being compiled, earlyprojections put the total in the billionsof dollars. 1Compounding the capital loss isthe lack of housing for employees inthis sector. Immediately following thestorm, all production ceased; however,quick action by industry leaders resultedin a resumption of at least somework in a matter of days. Affected operationslost employees who evacuatedand were unable to return. Many ofthose workers remain absent, creating asevere labor shortage. Northrop Grumman,for example, had approximately15,000 employees at its Pascagoula andGulfport operations before the storm.Three months later, only 10,000 returnedon a full-time basis. Some wereworking only part of the week becauseof the housing shortage. 2 Some maynever return.The responsibility and the resourcesfor repairing much of the physical damageare relatively clear, especially withthose facilities owned and operated bythe federal government. More problematicare the connected issues that mustbe addressed before the military, otherfederal agencies and their contractors,and local governments can resume andgrow their partnership.RecommendationsRegarding the defense and governmentcontracting sector, the Commissionrecommends the following:HousingWhile the overall housing issue is ad-

THE GOVERNOR’S COMMISSION REPORT | 117Aerial photo of Naval Station Pascagoula on Singing River Island.

118 | DEFENSE AND GOVERNMENT CONTRACTINGdressed in another chapter, the Commissionoffers several recommendationsthat are unique to the needs of the defenseand government contracting sector.■ The governor should seek the supportof the state’s congressional delegationin requesting that the Department ofDefense and other federal agenciespermit, where appropriate, the useof government-controlled propertyas sites for temporary and affordablehousing. The lack of available sitesfor trailers and other manufacturedhousing has been a major factor indelaying their installation. Perhapsproperty owned by Stennis may beused for temporary housing in HancockCounty.■ FEMA should place larger defenseand government contractors in directcontrol of immediate temporaryhousing for their own employees,both now and in the future. TheStennis Space Center (Stennis) hasdemonstrated this arrangement betweentwo governmental entities,NASA and FEMA. The agreementbetween NASA and FEMA providesthat some administrative expense beborne by the defense contractor, butthe federal government is responsiblefor all costs associated with the executionof the temporary housing. Largedefense contractors readily have theresources and management systems toreduce significantly the time line ininstalling temporary housing.■ The larger defense contractors inthe region should become financialpartners in the transitional housingprograms coordinated by FEMA andEmergency Support Function 14(ESF-14). If necessary, the MississippiLegislature and United States Congressshould grant financial incentivesFederaldefense andgovernmentcontracting inMississippirepresents:■ A $6 billion stateindustry, 60 percent ofwhich is focused in theGulf Coast region hardesthit by HurricaneKatrina.■ More than 30,000 jobs.■ An estimated annualpayroll of $1.5 billion,generating millions intax revenue to supportcommunity services,public education,and infrastructuremaintenance.Commission Researchto encourage this program. The contractorwould bear the financial responsibility,but some of the expensescould be offset by governmentalsubsidies, tax incentives, and rentalincome. The contractor would realizeits bigger return on investmentthrough maintaining a workforce andcontinuing production.Addressing the Skills GapThe lack of workers, especially thosewith the required technical skills andprofessional training, directly affects theability of companies to meet contractproduction schedules. This situationthreatens not only current contracts butalso those they may compete for in thefuture. Given the contributions of thissector to the state economy, the skilledlabor shortfall is a significant economicdevelopment issue.The Commission recommends thatthe boards of trustees of the communitycolleges immediately assess currentand future training needs and establishprograms to fill the gap. State funds existfor skill training and should be matchedby the community colleges to specificneeds of these industries.Putting Retired FederalFacilities to New UsesThe Mississippi Army AmmunitionPlant (MSAAP) at Stennis and NavalStation Pascagoula (NSP) are amongfacilities designated for transfer or closureby the Department of Defenseand Congress as a result of the recentround of Base Realignment & Closure(BRAC) studies. For all practical purposes,both have been closed for sometime. The ammo plant has been mothballedfor years, and ships previouslyhome-ported at Naval Station Pascagoulaeither have been decommissioned

THE GOVERNOR’S COMMISSION REPORT | 119or reassigned to other areas. The federalgovernment should accelerate the ownershiptransfer process to assist efforts instimulating the economy.NASA is prepared to accept MSAAPat its Stennis location, and the officialclosing of NSP would allow Pascagoulato move forward with existing plans toincorporate that land in its economicdevelopment plan.The governor and the Mississippicongressional delegation should urgethe Department of the Army and theDepartment of Defense to transfer immediatelythe facilities with federalfunding necessary to transition the facilitiesfor other jobs creating opportunitiesat Stennis. NASA has identifiedprograms that could utilize the facilities.MSAAP sits on about 4,200 acres andapproximately 1.7 million square feet ofspace, with a large portion of the facilityavailable for growth. This square footagewould almost double the square footageof Stennis; however, a recently completedfacility assessment of the buildings atMSAAP found them to be in poor tofair condition with repair needs totaling$49.2 million. 3NASA’s concern with assumingownership is the liability of approximately1 million square feet of buildingsthat have been unoccupied andpoorly maintained for over 15 years.This liability may be reduced by the recentannouncement of an expansion ofPratt Whitney Rocketdyne operations,as well as expansions of other enterprisesat the installation. There remains,Fishing pier at Naval Station,Pascagoula.

120 | DEFENSE AND GOVERNMENT CONTRACTINGhowever, over 600,000 square feet thatrequires $30.2 million in work, andNASA would have to meet the financialburden of this transfer without affectingobligations to its other missions. 4If NASA acquires the facility, itshould use its established proceduresand contractors to operate the facilityconsistently with the operations ofStennis. NASA should realize efficienciesin most of its operations, furtherenhancing the competitive positionof the region. Stennis’ impact on theregions is underscored by the state ofLouisiana’s reliance on the facility. Approximately25 percent of Stennis’ employeesare from Louisiana, and the statepassed legislation that allows it to spendits own economic development fundsin Mississippi and at Stennis. 5 Congressrecently appropriated $349.8 million torepair and harden NASA facilities thatsustained hurricane damage.The same uncertainty that plaguedplanning for MSAAP following its inclusionon the BRAC list also has complicatedlife for workers and officials atNaval Station Pascagoula. This uncertaintyof future use could adversely affectjob-creation, and, like the MSAAP,the NSP land has significant potentialfor serving the recovery of South Mississippi’sbusiness base. The Commission,therefore, recommends an expeditioustransfer of Department of Defense assetsof the United States Navy and personnelfrom Naval Station Pascagoulaon Singing River Island, and from theLakeside Naval Support Facility (also inPascagoula), so as to allow for the immediate,public/private redevelopmentof the island site and associated realproperty and facilities.The Commission further recommendsthe immediate reversion of bothNaval Station facilities and associatedproperties to the state of Mississippi.The reversion should be executed withthe federal government waiving compensationso as to lighten revenue expendituresof the state during its recoveryfrom Hurricane Katrina.If this transfer/reversion occurs inthe manner prescribed, the City of Pas-cagoula, Jackson County, and the stateof Mississippi should immediately beginworking with the Department ofHomeland Security (DHS), the UnitedStates Coast Guard, and other federal/state agencies to develop a suitable reuseof Singing River Island. The reuseshould serve both national securitymissions and appropriate private-sectordevelopment. The federal governmentalso should consider transferring theVeteran’s Hospital property in Gulfportto the city for better public utilizationof the property.Securing Our Opportunitiesto CompeteConsidering the intense, competi-tive national and international businessenvironment, local, county and stategovernment entities should aggressivelysupport the defense and governmentcontracting industry. The Commissionhighlights the necessity of preservingand implementing incentives that allowthis sector of the state economy to grow.Despite Katrina’s severe blow to the taxbase of the communities, all levels ofgovernment should be sensitive to thepotential negative consequences of increasingthe tax burden of defense andgovernment contractors. Congress approved$1.69 billion to ensure continuationof Naval shipbuilding activities onthe Gulf Coast.

HUMANSERVICESThe reports that follow from the Health and Human Services, Education,and Non-Governmental Organizations committees describe themost complicated and fragile systems that connect all Mississippians.In the best of times, the individuals and organizations responsible forthese services are overwhelmed and underfinanced. In a time of nationaldisaster, their capabilities are strained to the breaking point.What has Katrina taught us about how we may better manage health,education, and social services?■ First, we must admit that the demands we place upon these systems areonly likely to increase. There will be more storms. There will be morepressure from the effects of population growth, especially in the coastalregion and especially for services to our most vulnerable residents – thevery young, the very old, and the least affluent.The sense of urgency a hurricane brings should help us focus on keygoals.We must:■ Replace crucial infrastructure. Help is coming. The recent federal appropriationwill help hospitals, schools, and other institutions partly recoverfrom the hurricane. Mississippians owe a debt of gratitude to GovernorBarbour, Senators Cochran and Lott, and other members of the state’scongressional delegation for securing those dollars.■ Seek value in collaborations and connections. Throughout this Commissionreport, you’ll see advocacy for forming regional coalitions to reducewaste and increase effectiveness. That approach will be especially rewardingfor cash-strapped nonprofits and government social services.

122 | EDUCATIONEDUCATIONWhile HurricaneKatrina dealt adevastating blowto all institutionsof learning in thestate, Mississippi now has a unique opportunity:It may analyze where it wasbefore the hurricane, the losses sustainedfrom it, and the future the state shouldchart as the recovery process continues.To grow a thriving economy and highquality of life for its citizens, Mississippimust have a strong education system —one that prepares children to becomethoughtful, productive adults.The recovery from Hurricane Katrinapresents the opportunity to implementprogressive measures that profoundlyimprove education in both South Mississippiand across the state. Educationproponents should use the destructionof Katrina to strengthen their resolve totransform the state’s education systemon a large scale. Starting with affectedcounties and moving toward a statewidenetwork, it is possible to partner, leadand innovate the way to a better future.The DamageNot only did Katrina damage and destroyschool structures, it also damagedand destroyed materials acquired byteachers over many years of service anddestroyed intellectual property garneredby universities from years of research.The hurricane levied a tremendoustoll on students, parents, teachers, andadministrators, uprooting them fromtheir homes and lives and giving them anew set of challenges. More than 15,000students and hundreds of teachers andadministrators were left homeless alongthe Coast. Immediately following Katrina,10,000 displaced students fromthroughout Mississippi and from otherstates enrolled in school districts that

THE GOVERNOR’S COMMISSION REPORT | 123Elementary school in Bay St. LouisCopyright Godbold & Company Photography, Inc.

124 | EDUCATIONBy the Numbers Number Total % of TotalSchool Districts with Damage 79 149 53%Schools Damaged 263 1005 25%Schools Totally Destroyed 16 1005 1.5%School Buses Damaged 159 7031 2.3%Source: Mississippi Department of Education; Mississippi Department of Education.Annual Report, Reporting School Year 2003-2004. 2005.were not their own. Other states haverequested the records of approximately1,400 Mississippi students who havetransferred, at least temporarily. 1The funding stream for the schoolshas been severely compromised. Localschool districts may wait years beforead valorem tax revenue returns to pre-Katrina levels. In addition, the gamingindustry on the Coast, which generateda significant portion of the local taxrevenue for schools, was significantlyderailed in Katrina’s path. The time requiredfor the gaming industry to repairand rebuild will be very costly to theCoast’s school districts. The MississippiDepartment of Education (MDE) estimatesthat tax revenue from gamingwould have been over $300 million toschool districts but lost due to the hurricane.Colleges and universities also sustainedsignificant damage. The administrationbuilding at the University ofSouthern Mississippi, Gulf Park campuswas damaged beyond repair. Thefirst floor of all front buildings, includingAdministration, Lloyd, Hardy, andElizabeth Halls, was completely washedout. The new library and the AdvancedEducation Center were built to moderncodes but sustained damage, includingwater on the first floor. The Cookbuilding, Provost’s home, and Cox Librarywere destroyed.The Marine Education Center Buildinglocated at Point Cadet in Biloxi iscondemned. The marine research siteof the Gulf Coast Research Lab, whichproduces between $12 and 14 millionin work per year, lost significant intellectualproperty such as specimen collectionand research data. Ten communitycolleges suffered damage from thehurricane. Damage to facilities totaledover $68 million, while replacementcosts for textbooks, instructional materials,career tech, computer and sciencelabs and library/media holdings totaled$1.75 million. Faculty and staff housingprovided by the colleges suffered damagetotaling $500,000. 2By December, enrollment in thedistricts hardest hit by the hurricanereturned to at least 75 percent of pre-Katrina levels. Several districts have returnedto full pre-hurricane enrollment,but much work lies ahead to rebuildMississippi’s education systems.Where We Are NowWith regard to early childhood care,many facilities that have reopened arefacing shortages of food and hygienesupplies for ongoing programs. Thosenot licensed by the Head Start programmay face a funding shortage. When thestate’s waiver of the usual certificationrequirements for state aid expires, somechildren enrolled after the hurricanemay not remain eligible. The questionof where those children will receiveservices if parents otherwise providethem looms large.In K-12, the immediate crisis haspassed, and schools have reopened.FEMA-provided portable classroomshave helped bridge the gap and provideinstructional space until new buildingsare built and damaged buildings are repaired.Schools now must decide howand where to rebuild. Many familieswill not face the risk of another majorhurricane and will move inland, addingsite selection and design capacity to thelist of mounting concerns for districtsrepairing and rebuilding.The funding issue is crucial. Schooldistricts have relied heavily on reservefunds to reopen. With ad valorem revenuedropping dramatically, the Governor’sOffice and state superintendenthave successfully pursued federal fundingto make up for the loss. School districtswill need the best estimates of cashflows from state and local sources tooffset the loss of tax base and the shiftsin enrollment after the hurricane. Thisnew federal funding must be carefullyshepherded and allocated appropriately.In higher education, an immediatechallenge is to accelerate our institutions’abilities to develop graduateswhom the post-Katrina recovery perioddemands. The Mississippi Departmentof Employment Security estimatesthat there is a shortage of 20,000skilled workers on the Coast. The state’sworkforce development programs mustplay an important role in meeting theseneeds, and high school vocational andtechnical centers and community collegesshould be utilized as skilled workforcetraining centers. Grants from theU.S. Department of Labor or the U.S.Department of Agriculture’s Rural En-

THE GOVERNOR’S COMMISSION REPORT | 125terprise Grant program may be availableto fund this workforce training.Two months after Katrina, more than25,000 workers remained unemployed.State funding sources for workforce developmentare depleted, so additionalresources must be found elsewhere toincrease training programs and prepareexisting workers for new kinds of jobs.RecommendationsThe Commission proposes the following:Early Childhood■ DHS should waive for 12 months itscurrent policy requiring a parent toapply for child support or to establishpaternity in order obtain childcare funded with CCDF funds.■ DHS and the Governor’s Officeshould release emergency hurricanefunds to school districts to pay incentivesto teachers who hold appropriatecredentials in licensed■ DHS and the Governor’s Officeshould oversee implementation ofstate proposals to assist in the recoveryof programs on the hard-hitCoast and form an advisory groupof early childhood program directorsand teachers, community collegeearly childhood staff, publicschool officials, child care resourceand referral staff, representativesfrom the early childhood programat Keesler Air Force Base, and theGovernor’s Office.■ The Mississippi Legislature shouldenact legislation that would requireDHS to transfer no less than20 percent of Temporary Assistancefor Needy Families (TANF) grantfunds into Child Care DevelopmentFunds (CCDF) each year.■ The Mississippi Legislature shouldenact legislation that would requirethe DHS to meet matching fundrequirements that would maximizethe state’s access to federal CCDFfunds each year.■ DHS and the Governor’s Officeshould apply for aid from the Bush/Clinton Relief Fund to extend for12 months the aid qualifying familiescan receive for childcare.Top: St. Martin Middle School in Jackson County; Bottom: Middle school in OceanSprings.Copyright Godbold & Company Photography, Inc.

126 | EDUCATIONearly childhood programs.■ Private corporations should use asmodels successful approaches suchas: the Chevron Daycare Recoveryprogram, which operates in JacksonCounty with 23 daycare centers;military programs for supportingfamily childcare; and efforts by thegaming industry to develop earlychildhood and childcare programswith flexible schedules to accommodateworkers on all shifts.K-12■ The U.S. Congress appropriatedfunds to offset property tax andgaming revenue losses. Congressauthorized $1.4 billion to aid K-12 schools that were damaged orare serving students in the affectedstates.■ The Mississippi Legislature shouldappropriate funds to build wirelessInternet access along the Coast. Followinga disaster like Katrina, wirelessinfrastructure would provide abetter avenue for communicationsand recovery of business operation.■ MDE and local school districtsshould offer additional on-linelearning opportunities by openinghigh school computer labs at night.Offering online courses in the eveningwill provide flexibility to studentswho must work during theday.■ MDE should hold Coast school districtsharmless on average daily attendance(ADA) and property valueworth when calculating MississippiAdequate Education Plan (MAEP)allocations for the next two years.The MAEP formula utilizes propertyvalue and ADA to calculate anappropriation for each district. Usingpre-Katrina numbers is necessaryto ensure financial stability inthose districts.■ Local school districts should collaboratewith FEMA to ensure newbuildings are designed to mitigatefuture wind and water damage.■ Local school districts should mitigatefuture damage by relocatingschools further inland when possible.Top: Elementary school in Long Beach; Bottom: Elementary school in Pass ChristianCopyright Godbold & Company Photography, Inc.

THE GOVERNOR’S COMMISSION REPORT | 127Higher Education■ The Institutions of Higher Learning(IHL) and the State Board forCommunity and Junior Collegesshould use existing funds to createthe Advanced Partnership for HigherEducation (APHE), a partnershipbetween the University of SouthernMississippi, Mississippi Gulf CoastCommunity College, and PearlRiver Community College designedto meet the educational andeconomic development needs of theGulf Coast. APHE’s purpose wouldbe to foster new levels of collaborationto promote economic development,design new degree programs,integrate current degree programs,and improve the cost-effectivenessof higher education on the Coast.■ Community Colleges have requestedfederal appropriations to offsetproperty tax and tuition revenuelosses. About one-fifth of the budgetsof community colleges on theCoast are dependent on local taxsupport.■ IHL and the Governor’s Office haverequested federal appropriations toprovide financial tuition assistanceto homeless/displaced postsecondarystudents. Students who have experiencedgreat financial loss wouldnot otherwise be able to continuetheir education. MDE estimatesthat at least 25 percent of studentsin higher education on the Coastpostponed college plans after thehurricane and 7,500 college studentswere displaced or homeless.Congress appropriated $200 millionto the U.S. Department of Educationto assist institutions of highereducation and students. These fundsshould be appropriated carefully.■ IHL and MDE should expand dualKatrina cost the state school systemthree-quarters of a billion dollars.Estimate Cost of:School Bus ReplacementSchool Repairs/ReconstructionFurniture/Equipment ReplacementTechnology ReplacementTextbook ReplacementInstructional MaterialsTOTALenrollment opportunities. Dualenrollment allows high school studentsthe opportunity to gain collegeand high school credit for thesame course. This will alleviate futurefinancial burdens for studentswho desire to attend post-secondaryinstitutions.Workforce Development$9.4 million$321.2 million$22.5 million$40.7 million$39.6 million$235 million$668.5 millionSources: Mississippi Department of Education.■ The state should utilize high schooland community college vocationalcenters at night for skilled constructionlabor training centers. TheGovernor’s Office should requestreimbursement for these expendituresfrom the U.S. Department ofLabor grants.■ IHL and MDE should collaboratewith the state legislature and theU.S. Department of Labor to offerfree tuition for students in coursesof study in industry-identified areasof need.■ The Mississippi Legislature shouldcreate tax incentives for employersto hire students in career and technicalprograms.■ Community colleges and universitiesshould expand “English as asecond language” community programsto integrate Hispanic citizensinto the Coast community.

128 |HEALTH AND HUMAN SERVICESHEALTHAND HUMANSERVICESThe economic impact ofHurricane Katrina onthe health care and humanservices industriesis staggering. Accordingto Commission research, hospitals sustainedan estimated $453 million inphysical damage and operational losses. 1The Mississippi Department of MentalHealth reports its facilities sufferedmore than $23 million in damage tophysical facilities.The impact on the industry’s abilityto recruit and retain health and humanservices workers is equally dramatic.Almost every provider interviewed byCommission members reported someloss of personnel, including physicians,nurses, and other healthcare workers. Inalmost every case, their principal concernswere the continuing out-migrationof workers because of the housingshortage, spousal employment, orworries about the region’s economicfuture.Workforce retention issues are exacerbatedby the national shortage ofphysicians, nurses, pharmacists, andother healthcare professionals. Clearly,recruiting to fill positions in such acompetitive environment will becomea more significant long-term challenge,and unless the challenge is addressedimmediately, personnel losses could reducethe quality of care.As the state moves from recoveryto renewal, health and human servicesand its skilled professionals will becomemore vital to a healthy and prosperousMississippi. The tens of thousands ofconstruction workers rebuilding homesand businesses will increase the demandfor health care. As South Mississippiansmove through their personal stages ofrecovery, there will be unprecedenteddemand for mental health services.

THE GOVERNOR’S COMMISSION REPORT | 129A Caesarean delivery performed during the height of Hurricane Katrina.Photo: Keesler Air Force Base

130 |HEALTH AND HUMAN SERVICESMoreover, the demands on human serviceswill grow at unpredictable rates.How does Mississippi address thecurrent need, plan for future disasters,and lay the foundations for a premierhealth and human services system?Disaster PlanningThe Commission recommends thatfuture disaster planning be coordinatedbetween all health and human servicesproviders, state and federal agencies, includingfirst responders, using a unifiedcommunication system. The HHS DisasterRecovery Director, as suggestedbelow, should create a written planwhich would set out the responsibilitiesof the various providers and agenciesbefore, during and after a disaster. Theplan should include the following:■ A Health and Human ServicesDisaster Director. The director,who would serve in the Office of theGovernor, would facilitate the developmentand execution of the planand would be responsible for effectivecommunication between providersand governmental agencies immediatelybefore, during and after a disaster.The director would be responsiblefor coordination of evacuation decisionsaffecting health and human-serviceproviders and their patients; coordinationof patient transfers beforeand after disasters; facilitating communicationsbetween providers andgovernmental agencies; stockpiling,delivering and ensuring the securityof mission-critical supplies such asdiesel fuel, gasoline, food, water, drugs,and tetanus shots to providers; coordinatingvolunteers; ensuring the availabilityof backup morgues; planningfor on-site security to health care providerswhere medications, food, andwater are held for patients to preventBesides thecrucial servicesit provides, thehealth andhuman servicessector:■ represents 12 percentof the state’s economy■ employs more than110,000 people, 7.6percent of the state’swork force (2001)Source:Doeksen, Gerald A.The Business of Caring: the EconomicImpact of Mississippi’s Hospital’son the State’s Economy, 2004.disruptions to patient care; and servingas a clearinghouse for facility assessments.■ A Unified Communications System.This would connect all healthcare providers, state and local agencies,the law enforcement community andfirst responders.■ Uniform Protocols for PatientTransfers. The protocol would identifythe types of patients to be transferred,the locations for the transfers,and the assistance available to facilitatethe transfer. The protocol would assistproviders, including mental health facilities,in ensuring patients are transferredto a facility that can best meettheir needs and in returning those patientsto the originating facility at theappropriate time.■ Uniform Facility Assessments. Toavoid duplication of multiple federaland state post disaster assessments, regulationsshould be changed to mandatethat the HHS Disaster Director,working with the Department ofHealth, conduct one all-inclusive survey.The survey would be conductedas needed and be made available to allstate and federal agencies on a timelybasis.■ Coordination of Mental HealthNetwork. There should be a singlesource network that coordinates accessto mental health providers that iscurrent and permanently maintained.The Director should ensure the networkis maintained and includes informationfrom the private, public,state facilities and clinics, independentpractitioners, and volunteer organizationsthat provide mental health careservices. This coordination will haveresponsibility for rapid and efficientmobilization of providers in times ofdisaster, ensuring that patients have

THE GOVERNOR’S COMMISSION REPORT | 131access to appropriate levels of mentalhealth care at all times.■ Special Needs Shelters. When adisaster is imminent, special needsshelters for oxygen-dependent, dialysis,and non-hospitalized patients whorequire ongoing care should be identifiedin every county. A written planfor these shelters should specify locations,management, staffing, security,and eligibility. The plan also shouldspecifically address shelters for mentalhealth patients who are being treatedin outpatient programs.■ Plans for Assisting Health andHuman Services Workers. Thereshould be predetermined arrangementsto ensure that transportation,fuel, housing, and child care are availablefor those expected to performin unusual circumstances. Provisionsto expedite emergency credentialingprocedures for temporary healthworkers and licensed child care facilitiesshould also be in place and routinelyreviewed to ensure effectiveness.Funding may be available fromthe Social Services Block Grants forwhich Congress recently appropriated$550 million.The Commission recommends that acomprehensive and coordinated disasterplan, including all of the recommendationsset forth above, be adopted priorto June 1, 2006. Costs would includecompensation for the director and perhapsone support position and, duringa disaster, the staffing of an operationscenter. The cost of the positions shouldbe minimal when compared to the efficiencygained in patient safety and theorganized delivery of services.Technology DevelopmentIn 2003,hospitals inMississippi:■ spent $10.3 billionthrough the stateeconomy■ maintained a $2.4 billionpayroll■ spent $665 million oncapital improvements■ created almost 120,000new jobs because ofoperational expansionconstructionSource:Doeksen, Gerald A.The Business of Caring: the EconomicImpact of Mississippi’s Hospital’son the State’s Economy, 2004.To take full advantage of advances inhealth systems technology, the Commissionrecommends establishing:■ A Geographical InformationSystem (GIS). GIS uses computersoftware to plot data points on ahigh-tech map with speed and accuracy.By viewing information aslayers, the GIS allows for the solvingof real world problems such as managinggovernmental services, and,in the case of health care and humanservices, tracking special needspatients, shelters and emergency resources.2 Home health, hospice, durablemedical equipment companies,and personal care facilities should beallowed to submit demographic andhealth data for patients to allow forinterface with GIS. By January 1,2008, the state should implement aGIS that improves services offered bythe Department of Human Services,Department of Health, and others.The GIS efforts in the state are coordinatedby the Remote Sensing/GISCoordinating Council, which wasestablished in 2003 by House Bill861. 3 To ensure technology is effectivelyutilized, the legislature shouldamend the statute to include on theCouncil the State Health Officer andthe Director of the Department ofHuman Services.■ A Regional Health InformationOrganization. As the infrastructureof the medical community is rebuilt,an opportunity exists to extendhealth information technology suchas Electronic Health Records (EHRs)to all providers. The EHRs should belinked to a Regional Health InformationOrganization (RHIO), whichin turn connects fragmented units ofinformation stored in hospitals, physicians’offices, labs and clinics. Thisinformation then can be captured ina unified, longitudinal patient record.

132 |HEALTH AND HUMAN SERVICESThe Commission recommends thata committee of health care providersbe appointed by the governor to determinethe feasibility of a RHIO accessibleto all participating providers.After addressing appropriate securityclearance and privacy issues, whichwould require patient preapprovaland adherence to privacy laws, healthcare providers, in the event of a disaster,would have to access the patient’scurrent medication profile, medicalhistory, treatment plans, and other recordsto ensure continuity of care.The appointed committee should exploregrant availability, preview existingprototypes, and perform an assessmentof potential provider and patient participation.At a minimum, a coordinatedpharmacy database for retail pharmaciesshould be created so providers canimprove continuity of care and patientsafety and reduce the potential for mistakesand system abuse during times ofemergency. South Mississippi providersshould coordinate their efforts withvarious national initiatives to developmore efficient health information technologyinfrastructure.A related long-term goal is to createa “one-stop shop” for human servicesdelivery. Creation of this systemwould be aided by converting paperbasedprocesses to digital files and usingdeveloping technology, includingInternet-based systems, for auditing andtracking. It will be possible to consolidatedata bases, eliminate duplication ofservices, and provide clients multipleaccess points to services regardless ofthe agency or program enrolling them.Workforce Retention andRecruitment■ Physician Retention. One of the mostsignificant issues that will affect theshort-term revitalization of the medicalcommunity is the retention andrecruitment of physicians who currentlyserve or will serve the coastalcommunities. Among the challengesis encouraging providers to remainin the area. While the displacementof the patient community in someareas has had a profound impact onthe financial viability of physician offices,an understanding of the renewalefforts underway in South Mississippi,many of which are outlined in thisreport, should encourage physicianfamilies to be a part of the recoveryprocess and lead to other physiciansto come to the Coast and be a partof its recovery. As plans for the futurematerialize, the state’s recovery accomplishmentsshould be formallycommunicated to the medical community.Opportunities on the GulfCoast should be aggressively marketedto healthcare providers nationwide toensure that physicians fully realize therevitalization efforts underway and theaccomplishments achieved. Establishmentof a formal residency program atone or more Coast hospitals also mayenhance recruitment and retentionefforts. Hospitals are encouraged toevaluate residency programs, identifypotential funding sources, and workfor the development of a program.■ Incentives for Serving Low-IncomePatients and Disaster Victims. TheCommission recommends that thestate submit a state plan amendmentto the Center for Medicare and MedicaidServices (CMS), modeled onthose recently approved in other states,to establish a supplemental physicianretention payment based upon averagecommercial payor rates. Physicianspracticing in designated PresidentialDisaster Areas would be eligible forthe program.■ Nurse and Other Health Care WorkerRetention. Educational opportunitiesshould be broadened for potentialnursing students, including providingadditional resources to communitycolleges and universities to increase capacityand to recruit students to theirprograms. Consideration should alsobe given to a coordinated marketingof health care careers to high-schoolstudents with a long-term objectiveof promoting careers in the industry.■ State Insurance Pool. The Commissionrecommends that the Commissionerof Insurance consider the establishmentof a State Insurance Poolfor health care providers for businessinterruption coverage in the event of adisaster. The pool would be establishedexclusively for salary/wage continuationto affected healthcare workers inorder to foster employee retention.

THE GOVERNOR’S COMMISSION REPORT | 133The pool may be created in at leasttwo ways. First, the Mississippi EmploymentSecurity Commission coulduse a portion of unemployment taxespaid by providers to fund the program.Alternatively, the Commissioner ofInsurance could create a new programthat would provide for the voluntarycollection of premiums from healthcare providers to fund a reserve foremployee wages for business interruptionresulting from a disaster.■ Medical Liability. The cost of malpracticeinsurance is a major factor inthe financial viability of a physician’spractice, thereby significantly affectingretention efforts. While recent tortreform efforts should be continued,the governor and legislature shouldmonitor malpractice premiums trendsand insurance options to ensure theavailability of affordable insurance forhealth care providers.The Economic Environmentfor Health CareThe impact of Hurricane Katrina haspresented new and significant challengesto all health care providers, particu-larly those which serve as the safety-netfor the indigent and uninsured. Ensur-ing health care coverage for patientsmost negatively affected by HurricaneKatrina will assist in protecting the economicviability of all health care pro-viders.The Commission supports federallegislation that would provide health-care coverage for displaced individualsand those who have lost incomes as aresult of this disaster. The Commissionalso supports federal legislation that assistshealth and human services provid-ers in obtaining funds to compensatepartially for the devastating impact ofHurricane Katrina on their operations.A logical way to compensate some pro-viders for increased costs and reducedrevenues would be to establish a “floor”for the wage index for providers in theaffected areas equal to 1.0. This wouldresult in a modest increase for most pro-viders, thereby assisting in the retentionand recruitment of nurses, technicians,and other health care workers.MedicaidThe Section 1115 and Section 1135waivers approved by the Departmentof Health and Human Services (HHS),waiving certain statutory Medicaid requirements,have been beneficial in ex-panding access to healthcare services tomany individuals affected by the storm. 4There are a number of issues that canonly be addressed by federal legislation,such as:■ Increasing the federal government’sshare of reimbursement available forMedicaid costs associated with servinghurricane victims. This wouldlikely include waiving/amendingprovisions of federal Medicaid law relatedto the federal medical assistancepercentage (FMAP) and other federalMedicaid reimbursement rates.■ Passing legislation that holds all statesharmless for any scheduled reductionin a state’s FMAP for fiscal years2006-2007.■ Passing legislation that holds all providersharmless for any changes toprograms such as Upper PaymentLimit, Disproportionate Share, andwage index for fiscal years 2006-2007.■ Ensuring that disaster relief funds areavailable for mental health servicesfor residents and first responders.■ Ensuring that legislation recognizesthat the impact of the disasteron healthcare providers will last formany months and should provide forcoverage for affected individuals for aperiod of at least 24 months.The viability and strength of Mississippi’sMedicaid program is vitally im-portant to all healthcare providers. Theprogram has struggled with budgetaryissues in recent years, and the burdenof increased enrollment that will resultfrom Hurricane Katrina will only addstress to the program. In the long-term,the significant number of “baby boom-ers” needing long-term care couldoverwhelm the Medicaid program ifmodifications are not made to existingeligibility rules and to provide al-ternatives for financing care. The WhiteHouse Conference on Aging recently

134 |HEALTH AND HUMAN SERVICESThe impactof HurricaneKatrina haspresented newand significantchallenges toall health careproviders, particularlythosewhich serve asthe safety-netfor the indigentand uninsured.published its Proposed Resolution to Enactthe Consumer Directed Long Term CareReform Act, which advocates the preservationof Medicaid for the truly needy,providing incentives for private savingsfor long-term care, and providing forconsumer choice in long-term care.The Commission supports legislationthat would protect Medicaid’s viability.Hospitals and other health care providersneed further education abouthow to utilize the “uncompensatedcare pool” created in the Section 1115waiver granted for Mississippi. TheCommission makes the following recommendations:■ The pool should cover services providedfor dates of service through atleast the next two years;■ Reimbursement from the federal uncompensatedcare pool should be definedas uncompensated care providedto any individual from a designateddisaster area; and■ Services provided by all health careproviders which are not covered ina Medicaid beneficiary’s home stateshould qualify for the uncompensatedcare pool.The Commission supports measuresthat are available to protect andstrengthen Mississippi’s Medicaid program,including the support of federallegislation to provide 100% federalfunding for all Medicaid expendituresfor individuals who are Katrina survivorsand for associated administrativecosts.Certifi cate of NeedMany health care facilities that receivedextensive damage during HurricaneKatrina are addressing a myriad ofissues to restore operations so they canmeet the health care needs of the communitiesthey serve. Certificate of Need(CON) regulations currently requirethat providers go through an applicationprocess to determine need beforecommitting to any capital expenditurein excess of $2 million.The CON program has been, andcontinues to be, an invaluable tool inhelping Mississippi protect access toservices in underserved areas and bycontrolling health care costs by preventingoverutilization of services. Theprocess, however, including requestedhearings and appeals, is time-consumingand expensive. Moreover, the currentemergency CON statute was notdesigned for a disaster of this scale andshould be amended and updated.The Commission recommends that:■ The Mississippi State Departmentof Health (DOH) adopt a CON exemptionor waiver for rebuilding aftercertain qualifying disasters. The exemptionshould be subject to carefulreview by the DOH and should carrystrong limitations as to expendedamounts, location of reconstruction,and additional capacity. This processshould be public, subject to reviewby the DOH staff to ensure a requestdoes not contemplate capacity or servicesnot existing before the disaster,and expedited. Any health care providerwanting to add capacity or servicesnot existing prior to the disastershould be required to go through theCON process as currently structured.■ The DOH should adopt a policy thatallows for an expedited CON reviewfor expenditures related exclusivelyto future disaster planning. The processshould be public and subject tostaff review, and receive an expeditedreview following its submission forapproval. The applications should beclearly related to disaster planning and

THE GOVERNOR’S COMMISSION REPORT | 135should not include any expansion ofservices or capacity. Issues that maybe addressed by such a policy includethe expansion or creation of on-sitepower plants and the development ofmeans to ensure an adequate watersupply.The Mississippi TraumaCare SystemThere are many challenges facingMississippi’s trauma system, includinginadequate funding, insufficient physiciancoverage in certain specialties, theinherent disincentive for hospitals toupgrade trauma levels, and poor coordinationand allocation of resources.Accordingly, the Commission recommendsa thorough outside assessment ofthe trauma system, in cooperation withand funded by DOH. DOH is encouragedto work with hospitals, physicians,ambulance providers, and members ofthe Mississippi Trauma Advisory Boardto develop plans to improve the system.The assessment should determinecurrent strengths and weaknesses andidentify opportunities for improvement.Necessary changes and incentivesshould be priorities to ensure the necessarytrauma care infrastructure is inplace.Mental HealthThe delivery of mental health servicesto patients has been severely affected bythe damage to the infrastructure that iscritical to providing care. The Commissionrecognizes that a new infrastructuremust be developed with a goal of promotingand enhancing cooperation andcommunication among mental healthproviders throughout the state to ensurethe delivery of the appropriate level ofcare in the least restrictive environmentpossible. In doing so, the Commissionbelieves the state will see improvementin the daily quality of care of some of itsmost vulnerable patients.The Commission proposes an independentassessment of mental healthneeds by an outside consultant to providerecommendations to better alignthe delivery of services and develop theinfrastructure it requires. The assessment– which has been estimated to cost$130,000-$194,000 – should be organizedto consider such key questions as:■ What are the best strategies for resourceallocation throughout thestate?■ How are overlaps in services eliminatedand gaps identified?■ How will shifting labor markets andwage regulations affect the competitionfor workers?■ Considering federal restrictions, canstate agencies be given the autonomyto change wage rates, within theirbudgets, to remain competitive withthe private sector?■ How can the state’s commitment lawbe more uniformly applied across thestate and provide for patients’ timelyaccess to care?The Commission also recognizesthat access to mental health care mustbe on the same level as access to otherkinds of medical care and, therefore,supports state legislative action that ensuresmental health beneficiaries enjoyparity with all other medical beneficiaries.Several national studies by differentgroups have been published that supportan increased premium cost rangeof 1-1.5 percent, with the cost beingshared between employers and employees.The studies indicate, however, thatparity substantially increases workerproductivity and also offers many otherlong-term benefits. 5Thoroughpreparationfor futuredisasters, theutilizationof technology,and thecreation of ahealth careenvironmentconducive tothe recruitmentandretention ofhealth careproviders,the physical,social, andmental healthneeds of thecitizens ofMississippi willbe met.

136 |HEALTH AND HUMAN SERVICESChild CarePreparation for future disasters shouldinclude plans for operational child carefacilities that help alleviate workforceshortages caused by school and day carecenter closures in the days and weeksfollowing a disaster. The Commissionrecommends that such a plan be coordinatedby the HHS Disaster Directorand funded by local businesses, medicalproviders, and/or local and state governments.The Commission supports the continueduse and maximum funding ofthe Child Care Development Fund(CCDF) for income-eligible children;the continued funding of the 4 percentQuality Training Programs across thestate; and the development of a newquality rated system that compensateschild care providers who provide appropriateearly childhood educationalactivities. The state should also evaluatethe potential for incentives to encouragethe private sector to develop childcare facilities, or partner with existingproviders, in order to make available thechild care our workforce needs. Childcare programs should be responsive tothe needs of working parents whilemeeting the developmental needs ofchildren.Case management programs willbecome particularly important in thecoming months as families are displacedfor extended periods. Community-orientedcase management plans shouldaddress housing, employment, transportationand education, with the primarygoal of self-sufficiency.Case management should also focuson children under state custody andensure that displaced parents with childsupport obligations meet their responsibilities.They are and should remainthe responsibility of DHS. DHS shouldalso continue to work closely with thestate Department of Employment Securityto promote job developmentand job placement to assist Mississippiansin reaching self-sufficiency. Childcare programs may also be eligible forfunding from the Social Services BlockGrants for which Congress recently appropriated$550 million.Damage at Hancock Medical Center in Bay St. Louis.Photo: Mississippi Hospital Association.

THE GOVERNOR’S COMMISSION REPORT | 137The ElderlyMany of South Mississippi’s oldestcitizens were hard hit by the hurricaneand are physically unable to meet thecurrent challenges. This short-rangeconcern, which is likely to exist forthe next few years, is exacerbated by alarger, long-range problem. The BabyBoom Generation, the largest in thenation’s history, is nearing its retirementyears and will make the senior populationthe fastest growing segment incommunities.The Commission recommends thatDHS develop a resource center for theaged that would provide informationand services including home-based services,independent living services, volunteerism,physical activity and wellnessprograms, vocational training, housingoptions, long-term care planning, andinformation related to the Medicareand Medicaid programs. Based uponthe experience of the DHS Division ofAging, it is estimated that the resourcecenter would require an annual budgetof approximately $350,000, whichwould be funded by the United StatesDepartment of Human Services’ Administrationon Aging and only requiresa 5 percent state match.The Commission also supports thedevelopment of senior wellness centersthat are designed to be hubs of activityfor the senior community. The centerscould be designed to efficiently convertto special needs shelters during a disaster.The anticipated cost of constructionis $1.5 million per center and might beavailable through a Community DevelopmentBlock Grant or Social ServicesBlock Grants for which Congress recentlyappropriated $550 million. Thecenters should be developed by theDHS Division of Aging in partnershipwith local governments.Other Recommendations■ The Commission proposes that appropriatestate legislative committeesregularly review regulations involvingthe reporting of diseases, isolation, andquarantine laws contained in MississippiCode Annotated Section 41-23-1, et seq., specifically with regard totheir effectiveness in natural disasters,bioterrorism events, and pandemicdisease.■ Because of the extensive damage doneto the South Mississippi RegionalCenter, which serves all six coastalcounties, the Commission suggeststhe Department of Mental Healthconsider establishing a permanentfacility north of I-10. If constructed,the facility could also serve as a specialneeds shelter for other mental healthpatients in the event of a disaster. TheCommission recommends that theDepartment of Mental Health andthe governor’s office seek congressionalfunding for the centers.■ The importance of health educationfor the children of Mississippi cannotbe overemphasized. The Commissionstrongly supports expansion of publichealth education in the classroom andrecommends substantially increasingour school children’s access to publichealth education through the developmentof a statewide curriculum.The long-term goal is to prevent baddietary and other habits which causesecondary disease that are prevalent inMississippi. The Commission recommendsthat the DOH and Departmentof Education work togetherto prioritize funding for this criticalinitiative, which can offer substantiallong-term health and financial benefitsto the state.■ The Commission also recommendsthat all hospitals regularly review theirbylaws to ensure that appropriatephysician coverage will be availablein-house during future hurricanes.These plans should address physiciancoverage in the days and weeksthat follow such a disaster, with theemphasis being on long-term needswhen major disasters strike.The Commission’s objective with regardto health and human services wasto make recommendations that wouldrestore and improve quality health services.Through preparation for futuredisasters, the utilization of technology,and the creation of a health care environmentconducive to the recruitmentand retention of health care providers,the physical, social and mental healthneeds of the citizens of Mississippi willbe met.

138 | NON-GOVERNMENTAL ORGANIZATIONSNON-GOVERNMENTALORGANIZATIONSNon-governmental organizations(NGOs)are often the first lineof defense and thelast recourse for peoplein need. They bring cultural and artsprograms to local communities, providea variety of social services to all age andincome groups, and give voice to theconcerns of those citizens they serve.Nationally, NGOs employ more than11.7 million people and accounts formore than 10 percent of the economy. 1Mississippi consistently has led the nationin per capita contributions to charitablecauses; however, services per capitaprovided by NGOs in Mississippi fallfar short of those in neighboring states.In South Mississippi, the aftermathof Katrina has demonstrated the criticalrole these organizations play in keepingthe social fabric of communities intact.Despite general awareness of the contributionsby the NGO sector, manySouth Mississippians, have a limited understandingof the organizational structureand daily operations, partly dueto the broad variety of organizations.NGOs include the local PTA to thecommunity foundation.Although South Mississippi is servedby a variety of NGOs, the sector doesnot have a common clearinghouse thatreflects the services they provide andmeasures the management and effectivenessof each organization. Further,while area NGOs generally have widecommunity support and are led bystrong leaders, there remains lacking aclear and united voice among NGOs.These deficiencies result in communicationgaps and inefficient delivery ofservices.These concerns were amplified bythe hurricane. Many organizations werenot operating under business models

THE GOVERNOR’S COMMISSION REPORT | 139NGOs are often the fi rst responders.Photo: United Way of South Mississippi

140 | NON-GOVERNMENTAL ORGANIZATIONSnecessary to compete successfully inan increasingly crowded funding environment.The Commission expectsthat the next several months will showthat Katrina taxed some NGOs beyondthe limits of long-term sustainability.NGO facilities were destroyed or significantlydamaged, and organizationalrecords and equipment were lost. Reducedstaffs have struggled to keep pacewith increasing needs. Without immediateaid and support, many organizationsmay lose their abilities to provideprograms critical to keeping the socialservice infrastructure intact.RecommendationsThe Commission makes the followingrecommendations based on theresearch and discussions of the NGOCommittee:■ Immediate funding assistance.Lost revenue is the most immediateissue for most of these organizations.Many were able to repurchaseor borrow computer equipment andfind temporary space for operationsand administrative functions. Numerousentities, however, have depletedthe limited reserves and arenot equipped to coordinate withnational organizations for fundraising.The Commission, therefore, isassisting in the placement of grantwriting teams to work with NGOsin applying for funding from sourcesthat previously have been undiscovered.Many services provided bythese NGOs are eligible for fundingthrough international organizations.This grant writing assistance shouldhelp relieve immediate problems,as well as aid in drafting intermediarybudgets, providing templatesfor future grant opportunities, andTheCommissionexpects thatthe nextseveral monthswill show thatKatrina taxedsome NGOsbeyond thelimits oflong-termsustainability.boosting local leaders’ experiencein national networking. The Commissionis coordinating efforts withthe Association of Fundraising Professionalsand the American Societyfor Association Executives. At theconclusion of “fund-raising season,”these associations will begin recruitingtheir members as volunteer grantwriters. NGOs should be aware thatCongress recently appropriated $550million in social services block grantsto furnish special assistance for thedisabled, counseling, child care, andemployment in the affected states.■ Greater representation in recoveryplanning. Without a donors’ forum,local NGOs find it difficult tohave a common voice and, therefore,have not been fully integrated in recoverydiscussions. The Commissionrecommends that the governor orother designated state or local officialappoint a member of the nonprofitcommunity to serve on future committeesor commissions tasked withlong-term recovery.■ A Non-Profit Clearinghouse.The Commission recommends thatthe Mississippi Center for Non-Profitsengage with organizations on theGulf Coast including United Way andGulf Coast Community Foundationto form an entity that creates lastingsupport for nonprofit organizationsin the area. This entity, the Gulf CoastNon-Profit Clearinghouse, should bethe cornerstone institution providingbusiness and professional developmentand key links with nationalorganizations, such as the NationalCenter for Philanthropy, for grantresearch. The Clearinghouse shouldbe the central communications pointamong NGOs during disasters andan information clearinghouse in recovery.The entity also may providegrant search resources and temporaryworking office space for NGOs.Funding should include partnershipswith regional and national organizations,such as Volunteer OrganizationsActive in Disasters (VOAD),AmeriCorp, Living Cities, America’sPromise, and the Knight Foundation.The Commission is working closelywith strategic local and national partnerssuch as Gulf Coast CommunityFoundation, United Way, Living Cities,and America’s Promise to ensurethat the success of the Clearinghousemakes it a model for regional grantorsand grantees.

SPECIALREPORTSWhere do we go from here?The following two reports help us direct our next steps.One helps answer the question that is on everyone’s lips:How do we pay for our rebuilding ambitions?The other report is a guide for keeping our most importantpromise to ourselves – to build back, not only better than ever, but safer thanever.Here is what we must do:■ Connect the needs in each of the hurricane-affected communities withresources available from federal and state government agencies and fromthe nonprofit and private sectors. With the governor’s appointment of animplementation group to coordinate and assist local communities’ rebuildingefforts, he is taking a crucial step in that direction.■ Commit to rebuilding approaches that acknowledge the realities of livingin a hurricane zone. Already local governments in the affected cities andcounties are discussing building and zoning codes to better protect livesand property, and some have already made changes to make citizens safer.

142 | FINANCEFINANCEIn the days following HurricaneKatrina’s landfall, many Mississippiansunderstood that eventhe most dramatic images broadcaston television around theworld failed to deliver the reality of thechallenges before them. While thosedirectly affected returned to the Coastto face the most immediate challenges,many began to ask the crucial questions:“How much will it cost to rebuild?” and“Where will the money come from?”The answer to the first question will beelusive, perhaps for years. A grand totalis less useful for families, businesses, andgovernment and nonprofit institutionsthan knowing the hurricane’s effectson their own properties or enterprises.Victims of the hurricane include municipal,county, and state governments;schools and universities; medical facilities;small and large private businesses;and individual residents.By providing some answers to thesecond question, however, the Governor’sCommission hopes to present achance for many to see more immediatebenefits.Public EntitiesLocal government budgets will facegreat pressure from the cost of rebuildingtheir communities, as well as long-andshort-term erosion of their tax base. Inanticipation of capital investment needsin connection with redevelopment, localgovernments may look to existingfinancing authority under Mississippilaw. Fortunately, the Mississippi Legislaturealready has provided a number offinancing tools to address the needs oflocal governments. Among them:■Lease Financings. Lease revenuebonds are secured by lease paymentsmade by the party leasing the facilitiesfinanced by the issue, in this casethe local government. Typically, leaserental bonds are used to finance constructionof facilities, such as schoolsor office buildings, used by a stateor municipality, which leases the facilitiesfrom a financing authority. Inmany cases, lease payments may besubject to annual appropriation orwill be made only from revenues associatedwith the facility financed. Inother cases, the leasing state or municipalityis obligated to appropriatemoneys from its general tax revenuesto make lease payments.■ Revenue Bonds. These are payablefrom identified sources of revenueand do not permit the bondholdersto compel taxation or legislative appropriationof funds not pledged forpayment of debt service. Pledged revenuesmay be derived from operationof the financed project, grants and

THE GOVERNOR’S COMMISSION REPORT | 143

144 | FINANCEexcise or other specified non-ad valoremtaxes. Generally, voter approvalis not required prior to issuance ofsuch obligations. The rating and costof capital varies greatly on the qualityof the revenue source and the level ofprojected debt service coverage.■ General Obligation Bonds. Generalobligation bonds are secured by thefull faith, credit, and taxing power ofan issuer. General obligation bonds issuedby local units of government aretypically secured by a pledge of the issuer’sad valorem taxing power. Ad valoremtaxes necessary to pay debt serviceon general obligation bonds arenot often subject to the constitutionalproperty tax millage limits (an “unlimitedtax bond”), although in somecases such limit may exist (a “limitedtax general obligation bond”). Suchbonds constitute debts of the issuerand often require approval by electionprior to issuance. In the event of default,the holders of general obligationbonds have the right to compel a taxlevy or legislative appropriation. Thisgenerally is the lowest borrowing costfor local governments.■ State Moral Obligation Bonds (MississippiDevelopment Bank). Moralobligation bonds are issued by a stateagency or authority that is securedby a non-binding covenant that anyamount necessary to make up anydeficiency in pledged revenues availablefor debt service will be includedin the budget recommendation madeto the state legislature or other legislativebody, which may appropriatemoneys to make up the shortfall. TheMississippi Development Banks issuessuch debt in the state. The legislatureor other legislative body, however,is not legally obligated to makesuch an appropriation.Mississippi’sCurrentFinancialSituationWhile the state faces noliquidity concerns in thenear term, it expects tolose approximately $300million in revenue overfour months. The Bureauof Buildings has reportedlosses at state universitiesand community collegesto be approximately$176 million. Damage toother state-owned buildingsis estimated to be$345 million. Even afterreimbursement from theFEMA, the state expectsto require $400 million forinfrastructure repairs.Source:Mississippi Department of Finance andAdministration. Bureau of Buildings, 2005.■ State General Obligation Bonds. Issuedby states, these bonds are generallybased upon appropriations madeby the state legislature for the purposesspecified. The state’s generalobligation credit, rated in the “AA”category, is very attractive to creditsensitiveinvestors and can be soldwith a very low cost of capital.Public Entity PossibilitiesPost-Katrina■ Mississippi Development Bank HurricaneKatrina Relief Program. Localgovernmental units affected by HurricaneKatrina—such as counties,municipalities, school districts, utilitydistricts, public hospitals—may beeligible to participate in the MississippiDevelopment Bank HurricaneKatrina Relief Program. Currentlythis Program has approximately $100million in available funds to offer inloans. These loans offer a variable interestrate with no principal or interestpayment for two years (capitalizedinterest), and loans may be prepaid atany time with 30-days notice. Thereis a mandatory redemption for suchloans at the end of two years. Theloan proceeds may be used to financecapital projects, equipment, workingor operating capital, and debt serviceneeds. There is no requirement for abond issue at the local level, but thelocal governmental unit executes theloan agreement pursuant to a resolutionadopted by the governmentalentity approving the loan and taxintercept agreement. This program isdesigned to take one week to completethe process from the local actionto the closing of the loan and deliveryof proceeds.■ Advance Refunding. Congress haspassed legislation that will in part al-

THE GOVERNOR’S COMMISSION REPORT | 145low an additional advanced refundingfor bonds issued by the state, a localgovernment or any political subdivisionif such bonds were issued tofinance facilities located within theGulf Opportunity Zone. This allowsany eligible governmental entity anopportunity to take advantage oflower interest rates.■ FEMA Loan Programs. In additionto the 500 plus programs currentlyoffered by FEMA, the FEMA CommunityDisaster Loan Act of 2005 wassigned by the President on October7, 2005, authorizing up to $1 billionin direct loans to local governments.The Community Disaster Loan Programprovides operational fundingto help local governments that haveincurred a significant loss in revenuedue to a federally declared nationaldisaster that has or will adversely affecttheir ability to provide essentialmunicipal services.■ Local governments must show asubstantial loss (greater than 5 percent)of tax and other revenues forthe current or succeeding year as aresult of a major disaster.■ The disaster must have adverselyaffected the level of essential municipalservices previously provided.■ State law must not prohibit localgovernments from incurring indebtednessresulting from a federalloan.■ The loan amount cannot exceedthe lesser of 25 percent of the applicant’soperating budget for thefiscal year of the disaster, or a cumulativeestimated revenue loss forthe fiscal year of the disaster andthe subsequent three fiscal years.■ Capital outlays and debt service(interest and principal) for capitalitems will be excluded in the calculationof the applicant’s operatingbudget.■ The term of the loan is five years,and can be extended to 10 years,with the applicant selecting thepayment schedule.■ The interest is the rate for five-yearmaturities as determined by the Secretaryof the Treasury on the date thepromissory note is executed. If anapplicant can demonstrate unusualcircumstances involving hardship, theAssociate Director may approve a rateequal to the five-year maturity rateplus 1 percent, adjusted to the nearest1/8 percent, and further reduced byone-half.■ FEMA will execute a promissorynote to the applicant cosigned by thestate. If the state cannot legally cosignthe note, the local government mustpledge collateral security. Funds willbe dispersed in accordance with theterms of the note.■ Funds must be used to carry on existinglocal government functions ofa municipal operation character orto expand such essential functions tomeet disaster-related needs.■ FEMA will provide technical assistanceto expedite the application andapproval process.■ To initiate the process, the local governmentshould complete the Certificationof Eligibility for CommunityDisaster Loan form and submit it tothe governor’s authorized representative.Private EntitiesExisting Authority and IncentivesIndustrial Development Bond Programs.The Mississippi Business FinanceCorporation (MBFC) serves as a statewidefinancing source, which allowscompanies to consider financing andincentive alternatives through a single

146 | FINANCEChart 1. Segmentation of themunicipal bond market by type.contact. MBFC is a public corporationof the state organized pursuant to Miss.Code Ann. Sections 57-10-167 and 57-10-201 et seq. MBFC administers severalfinancing programs including SmallEnterprise Development Finance Program(SED), the Industrial DevelopmentRevenue Bond Program (taxableand tax-exempt), and the EquipmentLease program.■ SED Program. Under the SED Program,eligible companies may borrowup to $2 million from MBFC tofinance capital projects. MBFC providescompanies an opportunity toparticipate in the SED Program bymaking long-term loans to eligiblecompanies at tax-exempt interestrates. To participate in the SED Program,the company must be approvedby MBFC and provide an irrevocable,direct pay letter of credit from an approvedbank and additional collateralas required by MBFC.■ Industrial Development Revenue BondProgram—Tax-Exempt. Through itsSource: Federal Reserve Flow of Funds Datatax-exempt IRB Program, MBFCprovides long-term financing formanufacturing or processing companiesat tax-exempt interest rates.The bond issue may be structured asa fixed interest rate or variable interestrate financing. As security for thebonds, MBFC may require a letter ofcredit from a qualifying bank or othercollateral.■ Industrial Development Revenue BondProgram—Taxable. MBFC may issueits taxable Industrial DevelopmentRevenue Bonds for commercial businessesapproved by MBFC for a termnot to exceed 30 years. As security forthe bonds, MBFC may require a letterof credit from a qualifying bank orother collateral.■ MBFC Equipment Lease Program.Under the MBFC Equipment LeaseProgram, qualifying companies maylease manufacturing equipmentthrough a major leasing company attax-exempt interest rates (variable rateor a fixed rate). The company’s obligationunder the lease is secured bythe machinery/equipment, which isfinanced under the lease agreement.Economic DevelopmentIncentives through MBFCCompanies may be eligible to financemanufacturing facilities, certainwarehouse or distribution centers, andtelecommunications and data processingcenters through MBFC’s financeprograms and also receive income taxcredits on Mississippi corporate incometaxes. Credits for eligible companiesare computed on the company’s annualdebt service for the project financedsubject to the limitations discussedbelow. For eligible projects financedthrough MBFC programs, companiesmay also receive sales or use tax exemp-

THE GOVERNOR’S COMMISSION REPORT | 147tions for project expenditures. This exemptionwould include a sales/use taxexemption for equipment purchasesor building material purchases madeby the company as part of an eligibleproject. Companies are also eligible fora 10-year ad valorem tax exemption forproject expenditures at the discretion ofthe county and/or the city where theproject is located.■ Rural Economic Development AssistanceProgram (“RED”). Companiesmay receive income tax creditson Mississippi corporate incometaxes pursuant to Miss. Code Ann.Section 57-10-401 et seq. Eligiblecompanies, including manufacturingfacilities, certain warehouse or distributioncenters, and telecommunicationsand data processing centers;may receive credits on Mississippicorporate income taxes. Credits arecomputed on the company’s annualdebt service for the project financedthrough the MBFC Industrial DevelopmentBond Program. The incometax credit taken each year cannotexceed 80 percent of the company’sincome tax liability. Annual debt servicefor a project includes all costs associatedwith the issuance of bonds,letters of credit, annual service fees,and principal and interest payments.The income tax credits may be carriedforward for three years after thedate the credit is earned. 1■ Exemption for Eligible Purchases.Mississippi Code Ann. Sections 57-10-255 and 57-10-439 provide anexemption for all purchases requiredto establish the enterprise which arefinanced by proceeds of MBFC revenuebonds. This exemption wouldinclude an exemption from sales/usetaxes for project purchases for the enterprisefinanced. Project purchasesinclude equipment purchases andbuilding material purchases made directlyby the borrower as part of theproject financed.■ Ad Valorem Tax Exemption. As providedin the MBFC guidelines, any advalorem tax exemption granted in connectionwith the Rural Economic DevelopmentAssistance Program shall beinitiated by a local political subdivision.The school tax portion of the ad valoremtax exemption shall not be granted.A resolution from the political subdivisionsauthorizing any ad valorem taxexemptions for a period up to 10 yearsshall be submitted to MBFC prior toclosing the bond financing. 2Loan Programs and OtherFinance ProgramsThe Mississippi Development Au-thority (MDA) provides a number offinance programs to encourage eco-nomic development:■ MBIA Loan Program. The Mississip-Chart 2. Segmentation of themunicipal bond market byunderlying rating distribution.Source: Securities Data Company

148 | FINANCEChart 3. Segmentation of themunicipal bond market by use ofinsurance on municipal debt.pi Business Investment Act Programis established under the direction ofMDA for the purpose of making loansto local governments for financingprojects necessary to complement industrialinvestment by eligible privatecompanies and to create and maintainnew full-time jobs within the state.A private company must: create andmaintain at least one new full-timejob for every $15,000 loaned; makea private match of at least $3 for every$1 of state assistance; create andmaintain a minimum of 10 new fulltime jobs.■ CAP Loan Program. The CAP LoanProgram is administered by MDA forthe purpose of assisting counties andmunicipalities in making capital improvementspursuant to Miss. CodeAnn. Section 57-1-301 et seq. Themaximum loan amount under theprogram is $500,000 during a calendaryear. Loan proceeds may be expendedfor public infrastructure and the construction,renovation, or purchase ofSource: Securities Data Companyindustrial buildings as provided underthe enabling act.■ Mississippi Small Business AssistanceProgram. This assistance is availableto manufacturers, wholesalers, retailers,and service providers that meetthe requirements for a small businessunder the enabling act. Proceeds maybe used for land/building, machinery/equipment,working capital, andstart-up expenses. The maximum loanunder the program is limited to 50percent of project cost or $100,000,whichever is less.■ Mississippi Major Economic ImpactAuthority. Pursuant to Miss. CodeAnn. Section 57-75-1, this programauthorizes the state to issue generalobligation bonds to assist local governmentsin developing major capitalprojects. Proceeds of the bonds maybe used to provide for transportation,education, recreation, and medicalfacilities surrounding the projectsite. In addition, public infrastructureimprovements may be eligible for financing.Eligible projects include newprojects or expansions to existing facilitieshaving a minimum investmentof $300 million by the private enterpriseor the U.S. government. Eligibleprojects under the enabling act includeindustrial or commercial facilities, researchand development, warehousingor distribution facilities, transportationfacilities, processing facilities,mining establishments, U. S. governmentprojects, and tourism projects.The Advantage Mississippi Initiative,which was enacted by the state legislaturein August 2000, amends theMajor Economic Impact Act to applyto an industrial enterprise with acapital investment not less than $150million and 1,000 net new full-timejobs, or with 1,000 net new full-time

THE GOVERNOR’S COMMISSION REPORT | 149jobs paying 125 percent of the averageannual state wage. The MississippiMajor Economic Impact Act was alsoamended to authorize the MississippiMajor Economic Impact Authorityto negotiate a fee-in-lieu of franchisetax on an eligible project, which maynot be less than $25,000 annually.The amendment also allows the StateBond Commission to issue generalobligation bonds in a limited amountfor additional purposes which includethe cost of providing for recruitment,selection, and training of employeesand related activities.■ Mississippi Loan Guaranty Program(Guaranty Loan). Under the GuarantyLoan Program, the state of Mississippiprovides loan guarantees forborrowers approved by the MississippiBusiness Finance Corporation. Theguarantee reduces the lender’s risk,which enables the borrower to obtainfinancing for eligible projects. Eligibleparties include manufacturers, wholesalers,retailers, and service providers.Proceeds may be used for land/building,machinery/equipment, workingcapital, and start-up expenses. Themaximum loan amount is $500,000.The maximum guarantee is 75 percentof the loan amount or $375,000,whichever is less.■ Minority Business Enterprise LoanProgram (Minority Loan). Underthe Minority Loan Program, MBFCmakes loans to qualified minoritybusinesses. Eligible businesses includemanufacturers, wholesalers, retailers,or service providers that meet therequirements for a minority businessunder the enabling act. Eligible expendituresinclude land/building, machinery/equipment,working capital,and start-up expenses. The maximumloan under the program is $500,000,with a minimum loan of $2,000. Forloans over $15,000, the state fundsup to 50 percent while for loans of$15,000 or less, the state funds up to100 percent.■Community Development BlockGrant Program (CDBG). The CDBGProgram makes grants available to citiesand counties that show a genuineneed for specific projects and canmeet the program’s state and federaleligibility requirements. All Mississippicounties and cities are eligible forCDBG funds. The cities of Jackson,Biloxi, Gulfport, Hattiesburg, MossPoint, and Pascagoula are “entitlementcities” and may recieve CDBG fundsdirectly from the federal governmentinstead of applying through the state.The primary criteria for receivingCDBG funds is to provide jobs forpersons of low and moderate income.MDA accepts applications for communitiesin subcategories: (1) Economicand Development Public Improvementfunds improvements suchas the provision of water, sewer, andaccess roads within a community; and(2) Economic Development Programthat provides for-profit businesses theability to promote economic developmentby creating and retaining jobsprimarily for low- and moderate-incomefamilies.Tax Increment Financing(TIF)Tax increment financings (alsoknown as a “tax allocation bonds”) arepayable from the incremental increasein tax revenues realized from any increasein property value resulting from capitalimprovements benefiting the propertiesthat are financed with bond proceeds. Taxincrement bonds often are used to financepublic infrastructure improvements inconnection with redevelopment projectswithout the necessity of issuing generalChart 4. Segmentation of themunicipal bond market bymunicipal market use of proceeds.Source: Securities Data Company

150 | FINANCEobligation bonds. Under the enabling act,the local government shall prepare thetax increment financing plan, which describesthe public infrastructure improvementsto be financed and the economicdevelopment project to be constructed bythe private company.Public Improvement Districts(PID)Pursuant to Miss. Code Ann. Section19-31-35 et seq., private developers inMississippi also may take advantage of asignificant economic incentive for thefinancing of basic project infrastructurethrough the creation of a publicimprovement district, commonly referredto as a “PID.” Once establishedby a local government, a PID offersprivate developers the opportunity tohave tax-exempt revenue bonds issuedfor the purpose of financing qualifiedinfrastructure. A PID allows a local governmentin Mississippi to offer an effectiveeconomic development incentivethrough financing public improvementswith a lower, tax-exempt interest rate.Special assessments levied on the landand improvements within a PID serveas collateral for the bonds issued by thePID. Additionally, such special assessmentsmay be used to satisfy the debtservice of the PID bonds. Interest rates,maturity and terms and conditions ofany bonds issued by a PID will be basedon the borrowing strength of the privatedeveloper, the type of development andthe specifications of the bond purchaser.Private Activity BondsTax-exempt bonds can be used for avariety of private purposes designatedby the federal government. These taxexemptgovernment bonds may be usedto finance certain projects, includingbut not limited to airports, water treatmentplants, facilities for certain privatebusinesses such as manufacturing, andChart 5. Permissable uses of tax-exempt bonds for private activities.redevelopment in certain designatedareas. The amount that can be issued islimited to an annual cap for each state.Federal AppropriationsCongress recently approved a $29billion measure for hurricane disasterassistance in the affected states. Themeasure, led by Senators Thad Cochranand Trent Lott, the state’s congressionaldelegation, and Governor Barbour,includes funding for the CommunityDevelopment Block Grant (CDBG)program, assistance for education needs,and funding for state and local law enforcement.Twenty-four billion dollarswill be provided through previously appropriatedFEMA funds, and an additional$5 billion will come from a slim,across-the-board cut to discretionaryspending. Bill highlights include:■ CDBG. $11.5 billion for relief effortsand mitigation activities, includinghousing assistance, infrastructuredevelopment, and assistance to publicservices.■ State and Local Law Enforcement.$125 million for funding law enforcementactivities in hurricane damagedareas, including the hiring of additionalofficers in areas that have experienceda sudden population increasedue to hurricane evacuees. Fundingalso may be used to replace equipmentthat was damaged, lost, or destroyedby the hurricane.■ U.S. Army Corps of Engineers LeveeRestoration. $2.89 billion will beused to accelerate completion of authorizedlevee projects around NewOrleans, restore levees damaged byHurricane Katrina, and completeLouisiana and Mississippi studies onincreased hurricane protection forCategory 5 protection.Source: Goldman, Sachs & Co. Memorandum to Governor’s Commission, Committee on Finance, Nov. 2005.

THE GOVERNOR’S COMMISSION REPORT | 151■ Small Business Administration DisasterLoan Program. $441 millionin funding will provide loans to homeownersand businesses sufferingphysical damage and economic injuryand to cover the costs associated withadministering these loans.■ Federal Highway Administration.$2.75 billion will allow the affectedstates to repair roads and bridges.■ Social Services Block Grants. $550million provides funding to furnishsocial services tailored to the needsof the affected states. Services mayinclude special assistance for the disabled,counseling, child care, and employmentservices.■ U.S. Department of Education. $1.6billion is provided for education assistanceto K-12 schools that were damagedor serving students affected bythe hurricane. Another $200 millionis available for assistance to highereducation institutions and students.■ Shipbuilding. $1.69 billion will ensurecontinuation of Naval shipbuildingactivities on the Gulf Coast.■ National Institute of Standards andTechnology. $4.5 million is includedfor the Manufacturing ExtensionsPartnership Program to provide consultingto businesses and manufacturerswhose productivity and workforcewere affected by 2005 hurricanes.■ Veterans Affairs. $685.5 million includes$619.7 million for the Departmentof Veterans Affairs and $65.8million for the Armed Forces RetirementHome.■ Military Construction and FamilyHousing. $1.378 billion is providedfor the Army National Guard to helprebuild Jackson Barracks in Louisianaand replace readiness centers acrossMississippi and Louisiana. Fundingwill also be used to help rebuild StennisSpace Center, Keesler Air ForceBase, and provide Navy and Air Forcefamily housing.■ United States Department of Agriculture.$1.1 billion will provide a varietyof assistance. The Emergency ForestryConservation Reserve Program willreceive $404.1 million to help provideassistance for forest landownersin hurricane-affected counties; $200million is provided for the EmergencyConservation Program (ECP) torehabilitate farmland damage causedby natural disasters; $300 million isprovided through the EmergencyWatershed Program (EWP) to removedebris, repair structures, and reshapeand protect eroded land.■ Rural Development Programs. $45million is provided for the RuralCommunity Advancement Programto provide grants to communities toreestablish water, waste disposal, andwastewater facilities. Another $65 millionis provided to the Rural HousingService and will be made available tolow-income families to purchase andrepair single-family homes.■ Training and Employment Services.$125 million provides job trainingopportunities for dislocated hurricanevictims.■ NASA. $349.8 million will providenecessary repairs and hardening forNASA facilities that sustained hurricanedamage. These facilities are criticalto the mission of NASA and areintegral to the shuttle program andfor future manned space activities.■ While officials continue to determineamounts ultimately allocated to Mississippi,the appropriations describedabove will provide a major componentto the state’s recovery.TheMunicipalMarketToday there is approximately$2 trillionof tax-exempt debtoutstanding issuedby over 50,000 stateand local issuers in theUnited States. Retailinvestors are the majorparticipants in themunicipal market,either through fundsor direct holdings. Thevast majority of municipalbonds are lowrisk,investment-gradecredits. Tax-exemptbonds provide themajor source of stateand local governmentfunding as wellas providing fundingaccess for certainprivate activities, someof which are illustratedin Chart Five.

152 | FINANCEGulf Opportunity Zone ActIn addition to these generous appropriations,Congress has passed the KatrinaEmergency Tax Relief Act of 2005(H.R. 3768). This new law gives HurricaneKatrina victims, both individualsand businesses, temporary tax breaks.The most significant legislation, however,may be the federal legislation establishinga Gulf Opportunity Zone(the “Zone”) where businesses locatedin the Zone would enjoy certain taxbenefits and incentives, similar to thoseoffered in lower Manhattan in 2002.These business incentives certainly arecritical to rebuilding the Coast and areessential for the areas affected by Katrinato regain some sense of normalcy.There is no doubt that the vast majorityof money that is going to rebuildthe Mississippi Gulf Coast must comefrom the private sector; that is, largelyprivate investments. Gulf OpportunityZone Legislation provides tax incentiveswithout requiring the direct appropriationof funds by the federal government.It is expected that up to 50 Mississippicounties, essentially those south ofthe line from Vicksburg to Columbus,will qualify for at least some of the anticipatedredevelopment incentives. Abrief outline of the significant incentivescontained in the proposed legislationfollows.■ 50 Percent Bonus Depreciation. Thefirst incentive relates to certain propertybought after August 28, 2005,that is used in a trade or business.Generally, this incentive will allowan additional deduction for depreciationof 50 percent the year the purchasedproperty is placed in service.Property that is eligible for this bonusdepreciation deduction includesmost types of depreciable real property.Of particular importance is thefact that, unlike the legislation passedpost-September 11, it is expectedthat the bonus depreciation will beavailable not only for costs incurredon rebuilding projects but also newprojects as well.■ Tax-exempt Bonds. The second incentivewould allow the state of Mississippito issue a limited amount oftax-exempt, private activity bonds tofinance the development of a widearray of commercial projects in theZone after August 29, 2005.■ Bonds would be available to almostall business sectors (gamingis excluded).■ Bonds would be tax exempt whichshould result in savings of up to200 basis points in interest costsper annum.■ As under current law, an applicantwill not have access to both the 50percent bonus depreciation andthe tax-exempt bonds.■ Net Operating Loss Carryback. Thelast incentive would allow an extendedcarryback period for net operatinglosses by businesses with preexistingoperations in the Zone. Suchan extension may assist taxpayers tomore quickly convert operating losses(including any resulting from thetax benefits discussed above) into taxrefunds.■ Other Important Provisions. Thelegislation contains a number ofother important incentives and reliefprovisions that are importantto businesses considering an investmentin the Mississippi Gulf Coast,including:■ Increase in Qualified RehabilitationCredit. The credit for qualifiedexpenditures for an historicstructure was raised to 26 percentand for other qualified structuresto 13 percent.■ Expensing Rules for Demolitionand Clean-up. Ordinarily demolitionand site clean-up costs mustbe capitalized. Special rules permitexpensing of up to 50 percentof such costs incurred through2007.■ New Market Tax Credit AuthorityIncreased. The allowable creditis equal to 39 percent of qualifyinginvestments in low-incomecommunities. To qualify, the investmentmust be made by anauthorized community developmententity. An additional $1 billionin authority was granted forthe years 2005 - 2007.■ Reforestation Incentives for SmallTimber Owners. The cap on thedeductibility of reforestation costswas doubled to $20,000 per yearthrough 2008 and a special fiveyearNOL carryback for smalltimber operations was authorized.To qualify, the timber owner mustown less than 500 acres of timber■ Low-Income Housing. The Actauthorizes almost $40 Millionin additional low-income taxcredits for Mississippi. Additionalprovisions will increase the creditsavailable to investors for newconstruction and rehabilitationexpenditures.■ Expensing of Qualified EnvironmentalClean-up Costs. Thedeductibility of environmentalclean-up costs incurred on qualifyingsites was extended for twoyears and applies to the clean upof petroleum products. To qualify,costs must be incurred from August27, 2005, through 2007.

THE GOVERNOR’S COMMISSION REPORT | 153RECOVERYRECOMMENDATIONSIntroductionThe purpose of this sectionis to describe specificdisaster-recoverypolicy issues and providerecommendations wherewarranted. First, a list of 10 guidingprinciples for long-term communityrecovery has been developed. The principlesare intended to offer state andlocal officials with a broad frameworkfor action. It is by no means a mandate,but rather a series of suggestionsthat may be used to help frame ongoingdecisions faced by state and localofficials as they work towards makingthe Coast better than it was before thedisaster. Next, emphasis has been placedon the identification of existing recoveryassistance, including funding, policies,and technical assistance that impactthe ability of individuals, families, businesses,and communities to recover. Thesection concludes with a discussion ofvarious organizational models that maybe used to implement the long-termvision of the Governor’s Commissionand help communities across Mississippirecover from Hurricane Katrina in away that makes them better than theywere before the disaster. Appendix A:Disaster Recovery Assistance describeskey federal, state, and nonprofit recoveryassistance, including its applicabilityto the State of Mississippi. Appendix B:Identifying Post-Disaster Recovery andReconstruction Funding, Assistance,and Implementation Strategy, outlinesthe steps needed to successfully procurefunding, change or create policy, andobtain technical assistance necessary tohelp in the implementation of a longtermdisaster-recovery strategy. Theseappendices may be found at www.governorscommission.com.RecommendationsThe following recommendations areintended to summarize key issues identifiedearly in the overall long-termrecovery process. These and additionalrecovery issues should be addressed byboth the existing network of federal,state and local government officials;community groups (some of which mayhave emerged following the disaster);nonprofit and private sector partners;

154 | POLICY RECOMMENDATIONSas well as the office created to managethe state’s long-term recovery effort.The recommendations noted here werenot prioritized in terms of their importance.Rather, they represent an initiallist to consider as the network of recoverygroups move from response andearly recovery activities to long-termrecovery and reconstruction. Theserecommendations also are intended tostimulate dialogue among other stakeholders,many of whom have focusedtheir efforts on assisting those who mostoften fall through the cracks followinga disaster, namely the disenfranchisedand less powerful. These recommendationsmay spur future discussion and theformulation of new recommendationsor the modification of those presentedhere. In many cases these recommendationscut across issue-specific committeerecommendations offered elsewherein this report. In order to frame currentand future actions, therefore, a series ofguiding principles are offered below.Guiding Principles forRebuilding the MississippiGulf Coast 1■ Economic Vitality. Actions shouldreflect the need to rebuild and sustaina diverse, vibrant economy. Aswith all principles, building a strongeconomy should complement,rather than contradict others listedbelow.■ Protect Environmental Quality. Disaster-recoverypolicies and reconstructionpractices should respecthow decisions enhance or degradeenvironmental quality. Preservingnatural systems, such as wetlandsand barrier islands, which are oftenlocated in known high-hazard areas,provides an additional benefit ofprotecting adjacent property fromflooding and coastal storm surge.■ Promote Social and IntergenerationalEquity. Improve social conditionsto include assisting the mostsocially vulnerable populations andtaking actions that enable futuregenerations to live, work, and playin a place that is better than theconditions of the past.■ Maintain and Enhance a HighQuality of Life. Recovery and reconstructionactivities should improvethe way in which people live,work, and play. Specific factors include:enhanced recreational, healthcare, educational, and employmentopportunities.■ Institutionalizing Hazard Resilience.Identify and implement acomprehensive strategy that protectslives and property from thedamaging effects of natural hazards.Actions may include land-use,codes, public education, and thehardening, retrofitting, or relocationof at-risk structures.■ Aesthetics and Historic Preservation.Encourage the preservationof historic structures and sites aspractical and consider the reconstructionof structures in a way thatcaptures the historic vernacular andlocal community aesthetic.■ Public Participation. Incorporatepublic participation practices intorecovery decision-making processes.Participatory actions may include,but are not limited to, publiceducation, participatory planning,notifiying people of relevant issues,

THE GOVERNOR’S COMMISSION REPORT | 155policies and funding opportunities,referenda, representative policymaking,open meetings, and hearings.Next, a series of recommendationsare offered, including a summary oftheir relevance, followed by potentialchallenges to their successful implementation.Recommendation 1:Maximize the use and disseminationof available data and research findingsthat may be used to enact policy change,affect reconstruction practices, and preparebetter for future events. Data andresearch findings may include thosecreated before and after Hurricane Katrina.Following major disasters, includingKatrina, FEMA and other federalagencies routinely conduct numerousstudies that are relevant to recovery andreconstruction activities. Other organizations,including colleges and universities,state agencies, environmentalgroups, and others may conduct studiesand perform a range of activities.For example universities and collegesperform multiple research efforts to addresscomplex policy issues. A specialeffort should be made to reach out toMississippi colleges and universities.This may involve the identification ofspecific research questions that must beanswered following Katrina.In many cases, this information isnot widely disseminated nor effectivelyused to shape meaningful policy andprograms. The ability to collect and disseminatethis information is not normallyassigned to a particular agency. Touse this information to affect meaningfulpolicy decisions, therefore, this datashould be organized and widely disseminatedto citizens (as appropriate),local, state and federal officials taskedwith recovery; policymakers (includingmembers of the Mississippi Legislatureand congressional delegation); membersof key associations and nonprofit organizationsand agencies. Specific examplesinclude, but are not limited to:■ Mitigation Assistance Team finalreports■ FEMA High Water Mark Study■ FEMA Advisory Flood RecoveryElevation Maps■ University and college researchprojectsOne option involves the creation ofan information clearinghouse that collectsand displays relevant written anddigital information in an easily accessiblelocation. This proposed approachis complementary to the suggested creationof design centers along the Coast.In some instances, the data and studiesmay be analyzed by members of thelarger recovery network, including localofficials, members of state and federalrecovery planning teams, state officialstasked with identifying unmet disaster-recoveryneeds, and hazard scholarswho are trying to answer assigned researchquestions. The collection of data,for example, could also be used to helpcoordinate and direct the actions of theproposed design centers. Data shouldbe displayed and analyzed using a GeographicInformation System (GIS)where practical. Specific data layers mayinclude, but are not limited to:■ Level of damages sustained byparcel“In 1965 The Beatlesreleased a song, ‘InMy Life.’ Some of thelyrics fit how peoplealong our Gulf Coastfeel about the changescaused by Katrina aswell as our historicallosses. The song beginswith ‘There are placesI’ll remember all mylife, though somehave changed, someforever not for better,some have gone andsome remain, all theseplaces have their momentswith lovers andfriends.’”– Edmond Boudreaux, Biloxi

156 | POLICY RECOMMENDATIONS■ SmartCode transects■ Advisory Flood Elevation Maps■ Orthophotos of coastal Mississippi■ Proposed design vernacular (basedon A Pattern Book for Gulf CoastNeighborhoods)■ Demographic information■ Types and amount of disaster assistanceprovidedFinally, and perhaps most important,this information could be tracked overtime in to provide tangible and measurableindicators of the degree to whichrecovery has occurred.Policy Implementation Challenges:Requires a well coordinated effort tofirst identify, and then link data andresearch findings to appropriate policymakersand those tasked with theirimplementation.Recommendation 2:Maximize the wise and coordinateduse of multiple recovery assistance tools,including funding, technical assistance,and policy initiatives, to ensure that affectedmunicipalities and counties areable to address local needs and recoverin a way that takes advantage of thepost-disaster window of opportunity tobuild back communities that are betterplaces to live, work and play than theywere before the disaster. 2Successful disaster-recovery requiresthe clear identification of local needsand the type of federal, state, regional,nonprofit, and private sector assistanceavailable. In the case of disaster-recovery,assistance generally can be brokendown into three categories: funding,technical assistance, and policies. Theprogrammatic requirements associatedwith differing levels of assistance variesgreatly. Generally, as funding movesfrom federal to private sector aid, theamount of “strings attached” to funding,policy and technical assistance decreases.As a result, communities shouldstrategically use differing types of assistance.Developing a well thought-outrecovery assistance strategy increasesthe likelihood that a wide array of localneeds is met. Alternatively, local governmentsmay target the use of thosefunds or technical assistance with thefewest policy constraints as a means toaddress the hardest to meet local needsthat cannot be satisfied by other, moreproscriptive sources of aid.Technical assistance is provided invarious forms by of differing groups.Examples may include conducting educationand outreach efforts for disastervictims or local governments, recoveryand reconstruction workshops, assistingin the development of a disaster-recoveryplan, the provision of policy guidance,the listing of funding available,and the writing and implementationof grant programs. The development ofa comprehensive recovery and reconstructioneducation, training, and outreachprogram will be discussed in thefollowing recommendation.Identifying important policies andhow they may affect recovery efforts isa key, but often overlooked part of developinga meaningful recovery strategy.The best plans may prove ineffective ifexisting or proposed policies run counterto identified objectives. If policieshinder the ability of the state, counties,and local communities to recover andrebuild in a way that makes them betterplaces that they were before the disaster,then those policies should be challenged

THE GOVERNOR’S COMMISSION REPORT | 157and potentially changed. Similarly, theadoption of new policies such as hazardmitigation that can help speed recovery,address identified needs, and better protectlives and property cannot only facilitatethe long-term recovery process,it also represents a way to make sure thestate, counties, communities, businesses,families, and individuals are better preparedto confront the challenges of recoveryin the event of another disaster.Policy ImplementationChallenges:The ability to coordinate effectivelythe number of differing and sometimesconflicting assistance programs is a majorchallenge. Developing a coordinated“assistance distribution network” iscritical to taking advantage of the postdisasterwindow of opportunity to facilitatea comprehensive recovery effortthat includes the most vulnerable andleast likely to recover populations.Recommendation 3:Identify the means to build and sustainlocal and state long-term recoverycapacity. Long-term recovery requires asustained commitment of state and localofficials in order to be effective. Identifyinglocal needs and procuring theassistance needed to meet them preandpost-disaster necessitates a trainednetwork of local elected officials, localand outside professionals and disasterrecoveryexperts, nonprofits, and privatesector leadership. Maintaining acapacity to recover from disasters is animportant function of local and stategovernments.A major challenge facing local andstate governments following major disastersis the ability to hire and maintainthe qualified staff needed to administerfederal grant programs, conduct localtraining programs, and assist localgovernments to plan and implement acomprehensive recovery strategy. Possibleapproaches include:Maximizing the Use of State ManagementCosts for Hazard Mitigation and PublicAssistance Programs. Following federally-declareddisasters, FEMA providesfederal funds to the state that officialscan use in the administration of federalgrant programs. These funds are typicallyused to pay for additional temporarydisaster-based staff, equipment, andmaterials needed to aid local governmentsimplement these programs. InMississippi, MEMA plans to use twoprimary approaches to address mitigationand public assistance programmanagement. The Mitigation Sectionplans to hire mitigation staff and placethem within planning and developmentdistricts in order to assist local governmentscomplete hazard mitigation plansthat will contain a series of identifiedhazard mitigation projects, develop hazardmitigation grants, and ultimatelyimplement the grants once approvedby FEMA. Contractors may be usedto supplement this assistance as necessary.The Public Assistance Section haschosen to hire contractors to supplementstate staff. Specific tasks will includethe writing and review of projectworksheets. Contractors will also assistthe state with project closeouts as requested.MEMA, working with FEMA,has developed joint Mitigation/PublicAssistance teams, tasked with the identificationof 406 mitigation opportunities(for a more detailed discussion ofthe importance of integrating hazardmitigation into recovery, see the recommendationon maximizing the useof mitigation in long-term recovery).“We don’t need thatextra-high,extra-wide bridgebetween Biloxi andOcean Springs. I thinkthey should listen tothe Ocean Springsresidents who want asmaller, moreattractive bridge.”-- Brenda Finnegan, Ocean Springs

158 | POLICY RECOMMENDATIONSPolicy Challenges:This approach represents a good wayto hire recovery staff focused on theadministration of the Hazard MitigationGrant Program and the PublicAssistance Program. It does not providethe means to hire staff to focus onthe broader long-term recovery process.Since the funds are intended tobe used for the administration of twospecific programs, the staff hired usingthis method must be released once theprograms are completed. As a result, thestate is unable to retain trained staff followingthe completion of the programs,unless other funding mechanisms areidentified. This represents a major challengeto state emergency managementagencies across the country.Establishing Local and Inter-State Disaster-recoveryNetworks. Following majordisasters like Hurricane Katrina, majorfinancial constraints are placed on localand state governments. Further, thesegovernments are often unprepared toaddress the policy challenges, includingbroad economic and social recoverychallenges. In order to provide assistanceto local officials, who are oftenstretched to provide daily public services,a locally-created assistance “network”is necessary. These networks may takethe form of a standing disaster-recoverytask force or other organizationalstructure that meets on an ongoing basisto address issues, offer solutions, andconvey local needs to state and federalofficials. The creation of local recoverytask forces should be the driving forcebehind the creation of a local recoveryplan, many of which are in the initialstages of development. Similarly, a commonrecommendation of a recoverytask force is to develop a comprehensiverecovery and reconstruction planthat identifies local issues and needs andoutlines the steps necessary to addressthem.Maximizing the Use of Existing Stateand Federal Contract Vehicles to Bring inLong-Term Recovery Experts to Assist theState and Local Communities. In additionfor the need to draw from localexpertise, others from within the stateor from across the United States have agreat deal of disaster-recovery expertise,much of which has been learned firsthand.The ability to draw quickly fromthis expertise is possible, but often noteffectively utilized. This is particularlytrue in the case of long-term communityrecovery. The Emergency AssistanceCompact (EMAC), for example,provides a tested vehicle to provide stateand local experts. Those called, however,often are focused on the administrationof the three primary FEMA programs(Hazard Mitigation Grant Program,Public Assistance, and Individual Assistance)rather than those individuals whohave experience in local community recoveryplanning and the administrationof multiple federal, state, nonprofit andprivate sector funding streams.The Governor’s Commission recommendsthat the EMAC, workingin concert with the Governor’s Office,MEMA and FEMA, identify and deploya cadre of long-term communityrecovery planning experts who can becalled on to assist directly the state andlocal governments with the range ofissues that occur as part of long-termrecovery activities. An emphasis shouldbe placed on those who have extensivebackgrounds in the developmentand implementation of comprehensiverecovery strategies to include planningfor post-disaster-recovery and reconstructionas well as the identificationand implementation of the resourcesneeded to achieve a sustainable recov-

THE GOVERNOR’S COMMISSION REPORT | 159ery. FEMA can also provide experiencedrecovery experts through the useof two existing contracts, the TechnicalAssistance Contract and the HazardMitigation Technical Assistance Program(HMTAP) Contract. At this timethe NISTAC contract has been usedto bring on staff who works withinFEMA’s Long-Term Community Recoveryteam, often referred to as EmergencySupport Function 14 (ESF-14).The National Response Plan includes15 Emergency Support Functions, all orsome of which can be called upon toassist following presidentially-declareddisasters. The HMTAP contract hasbeen used to perform a number of activities,including the assessment of howstructures performed following HurricaneKatrina, documenting high watermarks, creating Flood Advisory Maps,and assisting local governments develophazard mitigation plans and mitigationgrant program implementation strategies.To meet the needs of local governmentsand disaster victims effectively,the state, working in cooperation withFEMA should conduct a local personnelneeds assessment and determine thebest way to identify and deploy thosewith the requisite experience, skills andabilities to identified communities.Developing Trained Local and State Cadreof Disaster-Recovery Planning, Policy andGrants Management Experts. As noted inthe previous recommendation, staff expertisein disaster-recovery planning,policy, and grants management are cruciallyimportant. It is also important tohire staff for an extended period of timeas local recovery will last for at least fiveyears, if not longer. EMAC and FEMAcontractors represent a valuable sourceof assistance but will not be presentthroughout the entire recovery process.The State of Mississippi, therefore, coordinatingwith the Governor’s Office,the Mississippi Development Authority,Mississippi Emergency ManagementAgency, Mississippi State University,Coastal Planning Development Districts,and FEMA; will provide planners,recovery policy specialists, and grantsmanagement experts to the six southernmostcounties and affected municipalities.The Governor’s Office will providelong-term recovery policy analysts andstaff to help coordinate the state’s implementationof long-term recovery planningefforts. This staff will be located inJackson as well as the Coast. Emphasiswill be focused on the implementationof a long-term recovery strategy, includingthe creation of recovery policy, theidentification and resolution of policyissues, as well as directing the overalllong-term recovery planning, policy,and grant implementation efforts. A seriesof federal state and regional agenciesand organizations will be workingwith the Governor’s Office to assist inthe implementation of recovery objectives.Mississippi DevelopmentAuthority should provide thefollowing services:■ Provide financial and technicalgrants management and recoveryplanning assistance to counties andmunicipalities. This assistance iscontingent on counties and municipalitiesagreeing to develop initialplans that identify how to improveplanning for future growthparticularly in Pearl River, Stoneand George Counties, and developrecovery plans that describe a strategicplan of action identifying specificpolicies and projects that theywill implement.“We have the chanceto make the Coast awonderful placefor tourists,vacationers, and bothpoor and richresidents.”– Charlie Swanson, Diamondhead

160 | POLICY RECOMMENDATIONSMembers of the Congress forthe New Urbanism shouldprovide the following services,as requested by the state:■ Assist in developing reconstructionplans for the 11 municipalitiesseverely affected along the Coast;and■ Conduct ongoing technical assistancefor local governments, operatingout of on-site design centerslocated along the Coast.FEMA’s Long-Term CommunityRecovery (ESF-14) staffshould provide the followingservices, as requested by thestate:■ Bring together federal agenciestasked with the provision of recoveryaid to support identified initiativesof the state;■ Assist municipalities and countieswith development of long-termcommunity recovery plans, as assigned;■ Assist municipalities and countiesin identifying appropriate federal,state, nonprofit, and private sectorfunding sources to implement theprojects identified in long-termcommunity recovery plans;■ Provide technical assistance to municipalitiesand counties to includerecovery planning workshops, disbursementof recovery self-helpguides, and other recovery assistanceas agreed to by FEMA, theGovernor’s Office, and MEMA;■ Provide, as appropriate, disaster assistanceinformation that can beused by the state to assess unmet disasterneeds.MEMA should provide the followingplanning and grantsmanagement services:■ Identification of hazard mitigationprojects;■ Writing hazard mitigation plans;■ Writing Hazard Mitigation GrantProgram applications;■ Notifying other planning partnersabout proposed and pending HazardMitigation Grant Program applicationsand Public Assistanceprojects;■ Providing ongoing technical assistanceto local governments, includingguidance on the implementationof hazard mitigation grants andPublic Assistance projects.Planning and DevelopmentDistricts should provide thefollowing planning andgrants management services:■ Writing of hazard mitigation plansand implementing local mitigationstrategies;■ Writing and implementing disaster-recoverygrants; and■ Assisting local governments withintegration of hazard mitigationand recovery plans into existingcomprehensive plans.Establishing a Permanent State Disaster-RecoveryTask Force. The state shouldconsider establishing a state-level disaster-recoverytask force to address

THE GOVERNOR’S COMMISSION REPORT | 161the massive challenge of coordinatingthe array of disaster-recovery assistanceprograms available following HurricaneKatrina. To be prepared for future disasters,this model should be formallyestablished and continue to meet afterthe recovery and reconstruction fromKatrina is complete. Primary tasks alsomay include raising issues and creatingrecovery policy issues that servesthe needs of disaster victims and impactedcommunities. A similar recommendationhas been proposed by theGovernor’s Commission in the land usechapter.Developing an Ongoing Recovery Trainingand Outreach Program. Long-termdisaster-recovery represents the leastunderstood aspect of emergency managementby federal, state, and localemergency management practitioners.It is incumbent on the state and FEMA,therefore, to do a better job of traininglocal, regional, state, and federal officialsas well as contractors and other membersof the recovery network about issuessuch as long-term recovery planning,the writing and implementation ofrecovery grants, and how to better takeadvantage of the unique circumstancesfollowing a disaster of the magnitude ofHurricane Katrina that provide communitieswith an opportunity to enactmeaningful improvements and change.Training and outreach efforts also mayinclude regular discussions with localofficials regarding the benefits of adoptingbuilding codes, joining the NationalFlood Insurance Program (NFIP), joiningthe Community Rating Systemand the development of hazard mitigationand recovery plans. Specific actionsshould include conducting disaster-recoveryassistance workshops where differingagencies and organizations whoprovide assistance can brief local governmentofficials. Topics should include:the level and type of technical assistancethey can provide, available funding programsthey administer, and a discussionof the policies they implement.It is also important to reach out to disastervictims. The current emphasis onthe Disaster Recovery Center (DRC)as the means to achieve this goal is notenough. In addition to the use of DRCsas a vehicle to disseminate information,FEMA, MEMA, and other relevantaid agencies should conduct extensivecommunity-based outreach activities.Emphasis should be placed on publicmeetings with disaster victims to describeprograms that offer assistance.A better job needs to be done to trainand educate insurance agents, lendersand the public about NFIP. Specifictopics should include an overview ofthe program, why it is important to purchaseflood insurance, and the need toconsider purchasing flood insurance regardlessof whether you are in a mappedflood hazard area. Following HurricaneKatrina thousands of homeowners andbusiness owners sustained flood damagebut did not maintain flood insurance,either because they were not in a designatedfloodplain, their insurance agenttold them it was not necessary, theybelieved it was too expensive, or theybelieved that their homeowner’s policycovered flood-related damages. In orderto make sound financial decisions,lenders should become more familiarwith the flood program and consideradvising, or requiring, individuals whotake out a loan to finance the constructionor purchase of a home or businessto purchase of a flood policy if locatedwithin the new mapped AdvisoryFlood Elevation or the historic flood ofrecord, Hurricane Katrina.“I am writing to youfrom Hattiesburg. I wasable to hear live audioof the presentationsmade at the Forum onmy local MississippiPublic Radiostation and was soexcited to hear it as ithappened! What amomentous time forour state!”– Jennifer West, Hattiesburg

162 | POLICY RECOMMENDATIONS“As we decide howbest to go aboutrebuilding theMississippi Gulf Coast,it is critical that wemake plans whichsquarely address thecentral issue of thecommunity: ‘What sortof quality of life do we,the citizens, wish toenjoy during our livesand pass on to ourdescendants for themto enjoy after we aregone?’”– Donald Newcomb, Long BeachConsider the Development of State EnablingLegislation. The Mississippi Legislaturemay consider the adoption ofenabling legislation that codifies howthe state will recover from a major disaster.Specific actions may include, thecreation and funding of state programsdesigned to address shortfalls in theStafford Act and traditional supplementalfunding packages, the possible creationof a state disaster-recovery fund,and the development of a state longtermrecovery organizational model.This fund should emphasize the hiringof permanent state staff members whoare experts in long-term recovery planningand policy. This expertise shouldinclude a thorough knowledge of recoveryprocesses and programs beyondthose administered by FEMA and notedin the Stafford Act.Policy ImplementationChallenges:Coordinating the collection of programsand developing a strategy thatmeets identified needs will require agreat deal of cooperation across federal,state and local recovery partners. Meetingas a group on a regular basis, preferablyas part of a widely recognizedorganization with political standing, iskey to success. Members of the groupshould also be willing to assign the staffand resources needed to make policydecisions and implement proposed actionover a long period of time.Recommendation 4:Maximize the use of mitigation inlong-term recovery. Under ideal circumstances,communities have developedand implemented a comprehensivestrategy to reduce the impact ofnatural hazards before a disaster occurs.In reality, policies and implementationof specific projects are often adoptedfollowing a disaster. This is due to severalfactors, including a willingness toalter the status quo based on a betterunderstanding of hazard risk, the presenceof federal mitigation funding, andan educational effort to demonstratethe merits of adopting hazard mitigationpractices. Specific hazard mitigationstrategies should include, but arenot limited to:■ Hardening or relocating vulnerablecommunity infrastructure. Anemphasis should be placed on theuse of 406 Public Assistance fundsto rebuild damaged infrastructurewhenever possible.■ Investigating nontraditional mitigationfunding sources. Numerousfederal agencies, nonprofits andthe private sector may be able andwilling to pay to implement hazardmitigation measures.■ Adoption of building codes. Theadoption of building codes representsone of the most far-reachingand effective options available tolocal governments. The success ofbuilding codes depends on the developmentof an effective enforcementprogram.■ Develop local hazard mitigationplans. Hazard mitigation planninginvolves the identification of a longtermstrategy to reduce the vulnerabilityof communities to identifiednatural hazards. Several communities,including some on the GulfCoast, have not completed localhazard mitigation plans. The completionof these plans is necessaryto remain eligible for post-KatrinaHazard Mitigation Grant Programfunding. The recommendations inthese plans should be integrated

THE GOVERNOR’S COMMISSION REPORT | 163into the actions sited in local comprehensiveplans, plans being developedby the Center for the NewUrbanism, and the recovery plansbeing developed by ESF-14 teams.■ Local communities should consideradopting FEMA’s Advisory FloodElevation Maps for reconstructionpurposes. The maps represent thebest available information regardingcoastal flood hazards. Rebuilding tothe pre-Katrina Flood InsuranceRate Maps will result in communitiesexposing people and theirproperty to an unnecessarily highflood risk.■ Consider the adoption of zoning,impact fees, and other land usetechniques to reduce the impactsof natural hazards. Local governmentsshould consider how theirexisting land-use practices increaseor decrease overall vulnerability tohazards.■ Educate citizens, local officials,business owners, lenders, insuranceagents, and others about the naturalhazard risk faced by coastal communitiesin Mississippi. Armingthose who may be affected by futuredisasters, including those whoprovide financial assistance to disastervictims, allows them to makebetter decisions that reduce theirphysical vulnerability or financialrisk.■ Encourage the purchase of flood insurance.Hurricane Katrina causedflooding outside of the boundariesof local Flood Insurance RateMaps.Recommendation 5:Expedite disaster-recovery processes,recognizing that federal, state and localgovernments must make decisionsthat are wise in the long run. The rapidprovision of assistance is often hinderedduring a major disaster. Federal, state,and local officials are typically overwhelmed.In the case of HurricaneKatrina, the magnitude of damages isunprecedented, requiring new and innovativeapproaches to distribute assistance,emphasizing the importance ofrelying on a broad recovery networksuggested in an earlier recommendation.Expedite federal and state recoverypolicy as appropriate. The adoption offederal and state policies related to hazardmitigation, and disaster-recoveryin general, should be expedited. Majorpolicy issues must be resolved prior tobeginning outreach, training, grant writing,and other implementation actions.At the state and local level, this can beachieved through regular meetings ofstate and local recovery task forces whopossess the authority to make policyand assign staff required for their implementation.Coordinating regular meetingsbetween the state task force andlocal recovery task forces also is importantto resolving local policy issues thatnecessitate state and federal guidance orinterpretation. This approach also allowsthe state to gain a greater understandingof local needs and create or amendweakened policy as appropriate. Specificpolicy issues may include, but are notlimited to, the provision of non-federalmatch requirements for mitigation andother recovery grant programs, and thedevelopment of specific measures tospeed up the delivery of assistance. Thestate of Mississippi should consider theuse of “global match” whenever possible,in order to stretch the use of federalmitigation assistance. Global matchinvolves the documentation of specificnon-federal mitigation-related activitiesthat may be used as a match to federalfunding. Examples may include thefunds used to implement the MississippiRenewal Forum and the Governor’sCommission.

164 | ROAD MAP TO ACCOUNTABILITYA ROAD MAP TO ACCOUNTABILITYRECOMMENDATIONSResponsible Entities and Funding SourcesLAND USE1 Land use ordinances should include mixed alternatives which promote walkability. Local governments2 Residential and mixed use developments should encourage a specifi ed percentage of affordable housing which is compliant with buildingstandards.3 Land use and economic development decisions should accommodate and be sensitive to the protection of existing natural areas includingwatersheds, wetlands, urban forests, and natural habitats.Local governmentsLocal governments4 Local governments should consider the feasibility of shared water and sewer systems while maintaining a sense of community identity. Local governments5 Highway 90 should not become six-lanes. It should become a slower-moving, pedestrian friendly boulevard that allows safe pedestriancrossing to the beach. Railroad traffi c should be moved north of the bays, allowing the vacant CSX right-of-way to be redeveloped as atree-lined avenue with light rail down the center connecting the 11 communities of the Coast.MDOT and local governments6 The state should enact legislation authorizing and encouraging the adoption of the SmartCode by communities. State legislature7 Each city and county should adopt the SmartCode as a model code for new zoning. Local governments8 Local governments should adopt the Pattern Bookas a compliment to its building code so as to provide local offi cials, developers, andhomeowners a tool to build or renovate residences and commercial buildings in a manner that is sensitive to the architectural heritage ofthe Gulf Coast.9 Local governments immediately should adopt the revised advisory fl ood maps and begin assessment and revision of their fl ood zonemanagement ordinances and building requirements.10 The state should adopt the latest versions of the International Building Code (IBC) and International Residential Code (IRC) with appendicesas a model code.11 Cities adjacent to Highway 90 should cooperate to develop a model ordinance for this transportation corridor. The ordinance shouldinclude consistent development requirements, setbacks, architectural specifi cations, and building requirements. The ordinance should alsoincorporate the SmartCode for properties adjacent to the Highway 90 right-of-way.12 The Mississippi Renaissance Advisory Council should be created to facilitate access to key decision makers, provide a forum for local andstate offi cials to address land-use decisions with federal and state government policy makers, prepare advisory standards for land-use, andorchestrate training and technical assistance for building and zoning offi ces of local governments.Local governmentsLocal governmentsState legislatureLocal governmentsGovernor’s Offi ce.13 A central Design Center should be created to offer technical assistance and expertise to local governments. University Research Center, state universities, RenaissanceAdvisory Council. Funded by University Research Center and stateuniversities.14 Local Design Centers should be created to provide local zoning and building offi cials, as well as private developers, with practical, technicalassistance from land use planners, code experts, architects, and engineers provided through government agencies, universities, andvolunteer organizations.15 Temporary, multi-disciplinary permitting authorities, or “Housing Resource Centers,” should be established. They should provide residentswith more effi cient and timely access to all necessary approvals for permitting, utilities, and licensing.16 The legislature should create the Mississippi Renaissance Corporation, a for-profi t, state corporation with the public purpose of marshallingcapital, planning projects, and assisting private developers and local governments in public-private partnerships in smart developmentconsistent with the core land use values stated in this report.Mississippi Development Authority (MDA), local governments,Renaissance Advisory Council. Funded by MDA.The central Design Center and local design centersState legislatureINTERMODAL TRANSPORTATION1 The CSX right-of-way should be acquired by the state. Governor and Mississippi congressional delegation. Federalfunding sources available.

THE GOVERNOR’S COMMISSION REPORT | 165RECOMMENDATIONS2 Highway 90 should be returned to a pedestrian-friendly beach boulevard that reduces vehicular traffi c and increases opportunities for bikepaths, pedestrian walkways, and public transit. It should remain four lanes and incorporate a Gulf Coast bikeway that extends the entirelength of the coast.Responsible Entities and Funding SourcesMDOT and local governments3 A new east-west transportation thoroughfare should be established. MDOT and local governments4 Transportation and traffi c engineering studies should be conducted to address the traffi c volume and congestion that will be generated bya six-lane Biloxi-Ocean Springs bridge that feeds into the present four-lane Highway 90.5 MDOT should redesign the I-310 connector to accommodate and support the following Commission recommendations: (1) a neweast-west thoroughfare, (2) the Highway 90 conversion to a pedestrian-friendly boulevard, and (3) Port of Gulfport activities which areevolving into a mix of commercial businesses and gaming.6 A transportation and traffi c engineering fi rm should be retained to study, evaluate and produce a transportation master plan for theMississippi Gulf Coast, including the six South Mississippi counties. Such plan should be designed to: (1) provide a pedestrian-friendlymulti-modal transportation network that improves traffi c fl ow and provides for bikeways, jogging paths, pedestrian walkways and trolleys,and (2) improve east-west and north-south travel for the central and northern parts of the coastal counties and George, Stone, and PearlRiver Counties.7 CTA should apply for all available federal funding to compensate for the revenue shortfall resulting from Katrina, and to repair and replacecapital facilities and vehicles.8 An experienced and qualifi ed transportation engineering fi rm should be contracted to undertake a comprehensive inter-modal transportationplan, including public transportation. The plan should focus on providing public transportation that affords a pleasant and cost-effectivemeans of traveling to work, visiting casinos, sightseeing, and shopping for residents and tourists. It also should encourage less reliance onthe car for daily use.9 CTA should obtain funding for a feasibility study addressing the construction and operation of an electric trolley/cable car system alongHighway 90 and other innovative approaches to increasing ridership in conjunction with the land-use and intermodal transportation recommendations.The Mississippi Department of Transportation should coordinate Highway 90 design and rebuilding plans with CTA to providefor a track bed location which supports a trolley cable car system.10 Casinos, condominiums, and retail developers, particularly those located along Highway 90, should work and coordinate with CTA in thedesign and development of rider pickup stations for rubber-tire trolleys and rail trolleys.11 The Governor should establish a Coastal Port Council to work directly with the Mississippi Development Authority (MDA) to study andevaluate the role and mission of the Port of Gulfport and the Port of Pascagoula. Also, an experienced, qualifi ed consultant should conducta study of these two ports and develop a master plan designed to maximize the growth potential of each port and minimize duplicationof operations and services.12 Property should be acquired north of Highway 90 and developed as an inland port or staging facility in preparation for shipment ofunloaded cargo to its fi nal destination.MDOTMDOT, Gulf Regional Planning Commission, and Federal HighwayAdministration. Funding available through federal highwayappropriations and State of MississippiGulf Regional Planning Commission, MDOT, Federal HighwayAdministration, and the Renaissance Advisory Council. Fundingavailable through FEMA, Federal Highway Administration, andMDOTCoast Transit AuthorityCoast Transit AuthorityCoast Transit AuthorityCoast Transit AuthorityGovernorGovernor, Harrison Co., MDA, Jackson Co.TOURISM1 The Harrison County Sand Beach Department and Mississippi Department of Marine Resources, through its Coastal Cleanup programs,should clean up the beach and adjacent waterways. This also will require cleaning the shallow waters of the Mississippi Sound to removedebris visible at low tide.2 MDOT should rebuild Highway 90 and the bridges consistent with the principles of the Mississippi Renewal Forum. MDOT3 The Coast should capitalize on the “Voluntourism” market. Mississippi Development Authority (MDA) should encourage such attractionsto out-of-state markets and the CVB should market these sites to in-state markets.4 The state legislature should create a coast-wide Tourism Promotion Commission and fund it with new funds and/or grants made availableto MDA. Enacting a 1% Food & Beverage tax may provide much of the necessary funding.5 Local governments should rebuild public and private piers and marinas according to stronger construction standards and best practicesmodels provided by the Mississippi Department of Wildlife & Fisheries.6 The Tourism Promotion Commission should research and test the Tier One Destination criteria, including validation of the assumptions andcriteria (number of rooms, exhibition space, etc.) and determine the retail capacity needed to attain Tier One status. Additionally, theTourism Promotion Commission should quantify the benefi ts of Tier One status and the methods to effectively market the designation.Harrison County Sand Beach Department and Mississippi Departmentof Marine ResourcesMDA and Mississippi Coast Convention and Visitors BureauState legislatureLocal Governments. Funding available through Water Resource-Planning Assistance to States.Tourism Promotion Commission. Grants available from the U.S.Chamber of Commerce and/or the federal Economic DevelopmentAdministration.

166 | ROAD MAP TO ACCOUNTABILITYRECOMMENDATIONS7 Local governments should raise roadside beautifi cation standards. Local governments8 Local governments and beautifi cation committees should enhance landscaping in public areas. Appropriate local organizations suchcounty beautifi cation committees and neighborhood garden clubs should provide volunteers for a massive planning, landscaping, andmaintenance effort.9 State and local tourism offi cials should share the news of recovery and renewal and meet with booking agents, airlines offi cials, andtourism industry groups to share plans that the gaming industry and other major attractions will rebuild and return bigger and better thanbefore.10 The state legislature should begin the restoration of our cultural and historic attractions by enacting state Historic Preservation Tax Creditlegislation (HB 1604) which would provide state tax credits and go along with federal preservation tax credits to commercial andresidential property owners who restore damaged historic resources. The U.S. Congress should extend KETRA to 2007.Responsible Entities and Funding SourcesLocal governments and local organizationsState and local tourism offi cialsState legislature and U.S. Congress11 Tourism, heritage, and cultural organizations should consider opportunities to share resources. Local organizations12 The Governor’s Offi ce and MDA should host planning charrettes on the model of the Mississippi Renewal Forum’s design charrette. Asimilar approach for taking ideas to action can be used to develop strategies for heritage and cultural tourism, for retail businesses, and forother sub-sections of the tourism economy.Governor and MDA13 The state and the Mississippi Coast Coliseum Commission should quickly complete the Coliseum expansion and remodeling. State of Mississippi and Mississippi Coast Coliseum Commission14 Tourism promotion organizations should follow through with the creation of a clearinghouse and one-stop-shop to research and apply forgrants, loans and other support for existing tourism-based organizations.15 The Tourism Promotion Commission should develop a new marketing plan and slogan for the Mississippi Gulf Coast. The plans shouldconsider and support the goal to reach Tier One designation.16 Events and festivals should continue. Hotels should receive appropriate resources to open quickly and accommodate visitors to theseevents.MDA, the Mississippi Main Street Association, Mississippi HeritageTrust, and the MississippiDepartment of Archives and HistoryTourism Promotion CommissionLocal festival organizers. Funding sources include MDA andfestival organizers in other states.17 Tourism promotion organization should focus on golf and charter fi shing. CVBs, Chambers of Commerce18 The Mississippi Golf Association should attract regional golfers and place golfers with available rooms. MDA can help the Golf Associationcreate and fi nance promotional material and distribute it to golfi ng market. The charter boat industry also survived the hurricane comparativelywell and should be part of the state’s short-term tourism promotion.19 Private development should transition the Coast from the nation’s premier voluntourism market to a Tier One destination. This includesbuilding additional hotel rooms, meeting and convention space, restoring and/or reconstructing museums/aquariums/learning andvisitor’s centers, and launching a major nationwide marketing campaign by the Tourism Promotion Commission20 MDA and the local CVB should create at least one new major attraction in South Mississippi. A NASCAR track, zoo, professional sportsfacility, and a cruise ship are all possibilities. A new J.L. Scott Marine Education Center, Biloxi Seafood Museum, NASA’s Infi nity complexand the eco-tourism opportunities along the Pascagoula River can each become major attractions. A new Hurricane Katrina Experience atInfi nity could teach about record-breaking Katrina and about hurricanes in general. This could be tied to a coast-wide “high water mark”tour.21 MDOT and the Mississippi Coast Transportation Authority should link attractions, accommodations, and convention and meeting facilitiesby trolley, rail, ferryboat, bike and pedestrian paths, and other multi-modal options.MDA and Mississippi Golf AssociationPrivate corporations22 Tourism organizations should leverage the “mini-brands” of our city centers. Tourism organizations23 MDA and “eco-tourism” operators should advance “eco-tourism” opportunities. MDA24 Local developers should expand the retail horizons. MDA and local governments should target major retailers like Nordstrom’s, Saks,Target, Crate & Barrel and Pottery Barn – especially those willing to tailor their store designs to the style and scale appropriate to theCoast. At the same time, encourage local artists and other entrepreneurs to create products that refl ect the culture of South Mississippi.25 Local governments and cultural organizations should create more themed “trails.” Possible unique tour paths include a Museum Trail, GolfTrail, Nature Trail, African-American History Trail, a Civil War to Civil Rights Heritage Trail, and Art Trail.26 Local and CVB offi cials should work with the state legislature to restructure tourism promotion and funding. The Tourism Promotion Commissionshould be created and new funding sources considered, such as a 1% F&B tax - to rewach a goal of a $20 million annual budgetto market South Mississippi tourism.MDA and local CVB. Funded by private development withappropriated tax incentives.MDOT and Mississippi Coast Transportation Authority. Fundingavailable through Federal Transit Authority grant programs.Local developers and MDALocal governments and cultural organizationsLocal and CVB offi cials and state legislature

THE GOVERNOR’S COMMISSION REPORT | 167RECOMMENDATIONS27 The state should use anniversaries of Katrina to call attention to South Mississippi’s renewal. Govenor’s offi ce28 The Governors Commission should publish and distribute the recommendations of the Commission related to tourism industry stakeholders(casino owners, hotel owners, airlines, developers).Responsible Entities and Funding SourcesGovernor’s CommissionDEFENSE AND GOVERNMENT CONTRACTING1 The Governor should seek the support of the state’s congressional delegation in requesting that the Department of Defense and otherfederal agencies permit, where appropriate, the use of government-controlled property as sites for temporary housing.2 FEMA should place larger defense and government contractors in direct control of immediate temporary housing for their own employees,both now and in the future.3 Large defense contractors in the region should become fi nancial partners in the transitional housing programs coordinated by FEMA andESF-14. If necessary, the Mississippi Legislature and United States Congress should grant fi nancial incentives to encourage this program.4 The boards of trustees of the community colleges should immediately assess current and future training needs and establish programs tofi ll the gap.5 The Governor and the Mississippi congressional delegation should urge the Department of the Army and the Department of Defense to immediatelytransfer MSAAP to NASA with federal funding necessary to transition the facility for other jobs creating opportunities at Stennis.6 Department of Defense assets of the United States Navy and personnel from Naval Station Pascagoula on Singing River Island, and fromthe Lakeside Naval Support Facility (also in Pascagoula) should be transferred so as to allow for the immediate, public/private redevelopmentof the island site and associated real property and facilities.7 Both Naval Station facilities and associated properties should revert to the State of Mississippi. The reversion should be executed with thefederal government waiving compensation, so as to lighten revenue expenditures of the state during its recovery from Hurricane Katrina.8 If this transfer/reversion occurs in the manner prescribed, the City of Pascagoula, Jackson County, and the State of Mississippi shouldimmediately begin working with the Department of Homeland Security (DHS), the United States Coast Guard, and other federal/stateagencies to develop a suitable reuse of Singing River Island. The reuse should serve both national security missions and appropriateprivate-sector development.GovernorFEMADefense contractorsCommunity colleges. State funds exist for skill training andshould be matched by the community colleges.Governor and Mississippi congressional delegationDepartment of DefenseDepartment of Defense9 Local, county, and state government entities should aggressively support the defense and government contracting industry. Local governments, MDACity of Pascagoula, Jackson County, and the State of MississippiSMALL BUSINESS1 A mobile Small Business Emergency Recovery Center should be created. Area Chambers of Commerce. Van donated by Detroit MetroChamber.2 A Small Business Survival Kit should be prepared and continually updated. MDA and area Chambers of Commerce3 The position of South Mississippi Small Business Emergency Preparedness Director should be created. State legislature or local county governments4 Population and business censuses should be updated. U.S. Department of Commerce5 A Cellular Phone Directory service should be created. Cellular carriers6 Business Improvement District Authorities should be created. Local governments7 Historic downtowns should be rebuilt or restored. Local governments8 A retail charrette should be conducted to develop more small retail opportunities. MDAEDUCATION1 DHS and the Governor’s Offi ce should oversee implementation of state proposals to assist in the recovery of programs on the hard-hitCoast and form an advisory group of early childhood program directors and teachers, community college early childhood staff, publicschool offi cials, child care resource and referral staff, representatives from the early childhood program at Keesler Air Force Base, and theGovernor’s offi ce.2 The Mississippi Legislature should enact legislation that would require Department of Human Services to transfer no less than 20% ofTemporary Assistance for Needy Families (TANF) grant funds into Child Care Development Funds (CCDF) each year.DHS and GovernorState legislature

168 | ROAD MAP TO ACCOUNTABILITYRECOMMENDATIONS3 The Mississippi Legislature should enact legislation that would require the Department of Human Services to meet matching fund requirementsthat would maximize the state’s access to federal CCDF funds each year.4 DHS and the Governor’s Offi ce should apply for aid from the Bush/Clinton Hurricane Relief Fund to extend for 12 months the aid qualifyingfamilies can receive for childcare.5 DHS should waive for 12 months its current policy requiring a parent to apply for child support or to establish paternity in order to obtainchild care funded with CCDF funds.6 DHS and the Governor’s Offi ce should release emergency hurricane funds to school districts to pay incentives to teachers who holdappropriate credentials in licensed early childhood programs.7 Private corporations should use as models successful approaches such as: the Chevron Daycare Recovery program which operates inJackson County with 23 daycare centers; military programs for supporting family childcare; and efforts by the gaming industry to developearly childhood and childcare programs with fl exible schedules to accommodate workers on all shifts.Responsible Entities and Funding SourcesState legislatureDHS and GovernorDHSDHS and GovernorPrivate businesses8 The U.S. Congress should appropriate requested funds to offset property tax and gaming revenue losses. U.S. Congress9 The Mississippi Legislature should appropriate funds to build wireless Internet access along the Coast. State legislature10 MDE and local school districts should offer additional online learning opportunities by opening high school computer labs at night. MDE and local school districts11 MDE should hold Coast school districts harmless on average daily attendance (ADA) and property value worth when calculating MississippiAdequate Education Plan (MAEP) allocations for the next two years.12 Local school districts should collaborate with FEMA to ensure new buildings are designed to mitigate future wind and water damage. Local school districts13 Local school districts should mitigate future damage by relocating schools further inland when possible. Local school districts14 The Institutions of Higher Learning (IHL) and the State Board for Community and Junior Colleges should use existing funds to create theAdvanced Partnership for Higher Education (APHE), a partnership between the University of Southern Mississippi, Mississippi Gulf CoastCommunity College, and Pearl River Community College designed to meet the educational and economic development needs of the GulfCoast.15 Community colleges should request federal appropriation to offset property tax and tuition revenue losses. Community colleges16 IHL and the Governor’s offi ce should request federal appropriation to provide fi nancial tuition assistance to homeless/displaced postsecondarystudents.MDEIHL and State Board for Community and Junior CollegesIHL and Governor17 IHL and MDE should expand dual enrollment opportunities. IHL and MDE18 The state should utilize high school and community college vocational centers as night skilled construction labor training centers.19 IHL and MDE should collaborate with the state legislature and the U.S. Department of Labor to offer free tuition for students in courses ofstudy in industry-identifi ed areas of need.IHL and MDE20 The Mississippi Legislature should create tax incentives for employers to hire students in career and technical programs. State legislature21 Community colleges and universities should expand “English as a second language” community programs to integrate Hispanic citizensinto the Coast community.Community colleges and universitiesNON-GOVERNMENTAL ORGANIZATIONS1 Grant writing assistance should be provided to supply immediate funding. Governor’s Commission with the Association of Fundraising Professionalsand the American Society for Association Executives2 A member of the non-profi t community should be appointed to serve on future committees or commissions tasked with long-termrecovery.3 Mississippi Center for Non-Profi ts should engage with organizations on the Gulf Coast including United Way and Gulf Coast CommunityFoundation to form the Gulf Coast Non-Profi t Clearinghouse that creates lasting support for non-profi t organizations in the area.GovernorMississippi Center for Non-Profi tsHOUSING1 A detailed housing needs assessment should be conducted on a county-by-county and community-by-community basis State and Local government. Funding available through a combinationof private and public sources, such as USGS and FEMA.

THE GOVERNOR’S COMMISSION REPORT | 169RECOMMENDATIONS2 A best practices assessment should assess building technologies, model codes, and zoning ordinances, and management practices thatcould be applied on the Coast.3 A barriers assessment should analyze, at a detailed level, existing code and zoning provisions within individual counties and cities in theaffected region in order to identify potential barriers to the creation of a suffi cient supply of safe, effi cient, and affordable housing.4 A former HUD housing site that was destroyed during the hurricane should be developed into a new high density, mixed use affordablehousing project.5 A small-scale program should be developed to pilot some of the proposed fi nancial mechanisms that provide incentives to go beyond basicbuilding codes.6 A housing pilot should be developed that involves the development of modular, permanent housing on a site that is currently being usedfor temporary housing.7 Cities and counties should immediately adopt – and grant expedited permits under – temporary codes that combine FEMA's interim basefl ood elevation advisories with Florida's stringent coastal hurricane resistance building standards.8 Over the long term, cities and counties should establish stringent minimum building safety codes based on the latest International BuildingCode (IBC) and International Residential Code (IRC) as well as hurricane and fl ood resistance codes.9 Cities and counties should consider reviewing their building codes to make sure that new modular and panelized housing technologies arepermissible within their jurisdictions.Responsible Entities and Funding SourcesState government. Funding available through a combinationof private and public sources, such as HUD's Partnership forAdvancing Technologies in Housing, the Building and Fire ResearchProgram in the National Institute of Standards and Technology,and the Department of Energy’s Building American ProgramState government. Funding available through private and publicsources, including philanthropic organizations and federal sourcessuch as HUD's Partnership for Advancing Technologies in Housing.Coordination between HUD, the state government, a local housingauthority, one or more private developers, and one or morelending institutions. Funded by HUD, for the affordable housingcomponent, and a private developer for the other housing andother components, such as retail.The state government should ask for assistance from the Departmentof Energy’s Building America Program and EPA’s EnergyStar Building Program. Funding provided by EPA and the DOE.Large insurance companies and/or Fannie Mae may also provideassistanceState government, FEMA, Mississippi Home Corporation. Fundedby FEMA and private developers.Local governmentsLocal governmentsLocal governments10 Communities should ensure that their zoning codes allow for dense, mixed-use development, including ample multi-family housing. Local governments11 Areas near airports, shipping ports, and other heavy industrial sites should be strictly zoned solely for compatible industrial or commercialpurposes.Local governments12 Local governments should be required to set and maintain permanent affordable housing goals. State government13 Developers of certain projects, as part of the permitting process, should be required to develop a minimum percentage of affordablehousing.14 In place of, or in addition to, affordability requirements for developers, cities and counties can create incentives to encourage developersto incorporate a greater percentage of affordable housing within their projects, as well as to make their housing units safer and moreeffi cient.15 Federal and state funding should be allocated to pay a portion of the lost property taxes of affected local governments for 2006 and2007.16 Programs should be developed which address population segments with known diffi culties in recovering their pre-Katrina housing situation.17 CDBG disaster relief and HOME funds should be used as forgivable second mortgages to make home ownership affordable and to helpresidents build equity.Local governmentsLocal governments18 A percentage of units in all LIHTC projects should be dedicated to very low income families. State government19 Local housing authorities, acting in concert with “New Statewide Community Development Entity,” should explain the process of qualifyingfor a mortgage loan to their voucher holders. The “New Statewide Community Development Entity” (CDE), acting in cooperation withHUD, should develop an initiative that would support this effort.20 The state should help educate businesses on the advantages of providing fi nancial assistance to support affordable housing and create theappropriate institutional mechanisms to funnel corporate housing assistance in the most effi cient manner.Congress, federal agencies such as HUD or FEMA, state governmentThe state, potentially acting through the Mississippi Home Corporationor the "New Statewide Community Development Entity"The state, potentially acting through the “New Statewide CommunityDevelopment Entity” and with HUD“New Statewide Community Development Entity”. Fundedthrough FEMA and/or HUD.The state, local governments, and private corporations

170 | ROAD MAP TO ACCOUNTABILITYRECOMMENDATIONS21 Private fi nance initiatives should be developed whereby the government provides an annuity stream to private concerns to help themundertake development efforts that would not otherwise be profi table.Responsible Entities and Funding SourcesHUD, state and local governments, the Mississippi Home Corporation,the CDE, and private developers. Funded through federal,state, or local governments, or by non-profi t foundation grants.22 Public and private funds should be used to create non-profi t community land trusts (CLTs) that would maintain land for affordable housing. State and local governments. Funding available through federalagencies such as HUD, the State, local governments, NGOs,developers, and local businesses23 Fannie Mae should combine energy-effi cient mortgage programs and location-effi cient mortgage programs, along with a housing durabilitycomponent, into a single housing effi ciency mortgage product.24 Private mortgage companies should be encouraged to reduce their lending rates for affordable housing that is effi cient with respect tolong-term maintenance needs, water usage, energy usage, and location.The state and Fannie Mae. Funding available through FannieMae, Department of Energy, and EPA.The Mississippi Home Corporation, the CDE, and privatecompanies. Funding available through Fannie Mae, Departmentof Energy, and EPA.25 Insurance companies should be encouraged to reduce their risk premiums for housing that exceeds basic water and wind safety codes. Mississippi Department of Insurance26 Local governments should offer lower property tax rates after 2008 for all homes that reduce their needs for infrastructure. The Mississippi State Tax Commission, working in conjunctionwith the Mississippi Public Service Commission and the MississippiDevelopment Authority27 The state and/or the federal government should consider directly subsidizing housing improvements designed to make affordable homeseven more affordable by reducing energy and water expenses, maintenance costs, and transportation costs.28 The state legislature should create an entity responsible for coordinating the overall effort to rebuild affordable housing within the Katrinaaffectedcounties.29 An entity should be established to identify, collect, prioritize, and disburse available funding sources for the development and renewal ofaffordable housing.Federal agencies such as HUD, EPA, or DOE and/or stateagencies. Funding would be provided by federal or state agenciesresponsible for the programs.State legislature. Funded by state and federal sources.State government. Funding available through state and federalfunding mechanisms.30 An entity should be created capable of offering educational outreach on a variety of issues to residents, developers, and communities. State government or non-profi t entity. Funded by federalprograms and non-profi t foundations.31 A program should be developed for training local, qualifi ed contractors to build quality affordable housing. State government or non-profi t entity. Funded by Departmentof Commerce, the Small Business Administration, or the NationalInstitute of Standards and Technology.32 An improved capacity for building code offi cials along the Coast should be created. State and local governments. Funded by federal agencies suchas HUD or FEMA.33 Housing decisions should be coordinated with infrastructure planning. Local governments34 The Governor’s Commission Housing Committee should be extended for three to six months, during which time it will fulfi ll the responsibilitiesoutlined in the "Housing Recovery Oversight" recommendation.Governor’s Commission35 A statewide, private non-profi t "community development entity" (CDE) should be developed. Governor and state legislature. Funding through state and federalfunding sources.36 A regional planning authority spanning the six counties most affected by Katrina should be created. State governmentPUBLIC SERVICES1 The state legislature should create a regional utility authority for the purpose of managing sewer, water, storm water, and other utilityservices across the six southern counties.2 The state should not only require regional plans where appropriate but should consolidate grant funds into a Regional Services Fund. State government3 The governor, or his designee, should use all appropriate infl uence to insist that state and federal agencies use their grant resources tosupport regionalism.4 When seeking improvements and replacements to the emergency communications systems within South Mississippi, local governmentsshould work with the Wireless Commission as it seeks to develop a statewide system and improve interoperability.State legislature. Funded by state and USDA.GovernorLocal governments5 The Wireless Commission should issue a request for proposals to develop a statewide wireless communication system. Wireless Commission. Funded by federal grants, user fees, andstate bonds.

THE GOVERNOR’S COMMISSION REPORT | 171RECOMMENDATIONS6 Local governments should be able choose their own system and vendors so long as the system and equipment are compatible with thestate’s interoperability plan.7 Immediate voice and data communications among fi rst responders (local, state and federal) should be coordinated, even if they areoutside the normal system coverage or jurisdiction of the lead agency responding to the incident.8 The Wireless Commission should develop survivability standards for design and construction of new and replacement wireless communicationsequipment and systems, and enforce those standards to local governments9 If the Wireless Commission contracts for design and construction of a statewide wireless communications system, the area most severelyaffected by Hurricane Katrina should be the fi rst area placed in full operation, especially with respect to improvements to interoperability.10 The Wireless Commission should include in the RFP a requirement for portable wireless units, towers, and other infrastructure to bedeployable as needed in the event of another disaster.11 The Wireless Commission should take the lead in development and implementation of a plan to coordinate public and private communicationsresources and assets during major natural disasters and emergencies.12 Recognizing the severe impact of Katrina on Coastal governments’ revenue and expenses, the Wireless Commission, the Governor’sOffi ce, the state legislature, and all other relevant public offi cials and agencies should avoid placing the cost of these measures on localgovernments.13 Before issuing the RFP, the Wireless Commission should update the RCC report regarding current state agency communications assets,needs, costs, and projected expenditures.Responsible Entities and Funding SourcesWireless CommissionWireless CommissionWireless CommissionWireless CommissionWireless CommissionWireless CommissionWireless Commission, Governor’s Offi ce, state legislature, andpublic offi cials and agencies. Funding available through state andfederal funding, FEMA, Department of Homeland Security.Wireless Commission14 Evacuation maps should be prepared for the southern six-county region. The Corps of Engineers, Gulf Regional Planning Commission15 The Mississippi Civil Defense and Emergency Management Association (MCDEMA) should be funded to provide a formal regional disasterplan for the six counties.State government16 The state legislature should fund MCDEMA to construct a storm-worthy operations center. State legislature17 An ad hoc task force should be created by the Governor which requires participation by entities providing statewide disaster planningservices.18 The state should retain qualifi ed and experienced consultants to study the feasibility and effects of consolidation of the school districts,law enforcement agencies and fi re departments in the six southern counties.Governor19 A GIS task force, composed of members of the appropriate government agencies, should be created. State government20 A six-county public services cooperative should be created to purchase common items, train personnel, and perform maintenance offacilities.State government. Funded by local planning and developmentdistricts and/or the state.GovernorAGRICULTURE1 Private non-industrial landowners should be required to meet certain qualifi cations for assistance under the Emergency Forestry ConservationReserve Program.County foresters2 A reforestation program for 600,000 acres should be created. Federal government3 Congress should enact federal income tax credits as an incentive for private investment for the reforestation and wildlife restoration incounties designated as Presidential Disaster Areas.4 Congress should appropriate $30 million to fund the Environmental Quality Incentives Program (EQIP) or to provide a direct EQIP appropriationto the Mississippi Department of Agriculture and Commerce (MDAC) to treat 90,000 acres infected with cogongrass, a selectnumber of other species, and to control giant salvia, Chinese tallow trees, privet hedge, and Japanese climbing fern in the PresidentialDisaster Area.5 Congress should appropriate $10 million to fund the Wildlife Habitat Incentives Program (NRCS) for species injured by the destruction tothe forests caused by Hurricane Katrina.6 Congress should appropriate $60 million to fund the Mississippi Forestry Commission’s State Fire Assistance/Hazard Mitigation Programand to provide assistance to local volunteer fi re departments.7 The U.S. Department of Agriculture, Forest Service’ Economic Action Program should be funded with $4 million to assist loggers with fuel,housing, and the development of wet storage yards.U.S. Department of Agriculture, Forest Service’s State and PrivateForestry Division and implemented by the state Forestry Commissionand state Fish and Wildlife FoundationCongressCongressCongressU.S. Department of Agriculture

172 | ROAD MAP TO ACCOUNTABILITYRECOMMENDATIONS8 Income derived from salvage cuts in the affected areas should be exempt from federal income tax of up to $2.5 million for eachlandowner who has fi led reforestation plans by 2010.9 A casualty loss should be allowed for landowners with no basis in timber, which would allow a loss to be taken on some percentage ofmarket value prior to the disaster, rather than on basis.10 MDOT should construct a bypass for Highway 98 which will allow traffi c to fl ow south and west of Hattiesburg MDOT11 MDOT should construct a four lane highway connecting Mobile, Alabama with McComb, Mississippi, thereby creating the “Mobile toMcComb Highway.”12 MDOT should widen U.S. Highway 26 to four lanes from Lucedale west to the Pearl River Bridge near Bogalusa. MDOT13 MDOT should widen U.S. Highway 589 to four lanes from Seminary, adjacent to U. S. Highway 49, south to I-59 at the Purvis exit. MDOT14 The state should obtain a federal exemption, allowing for forestry and agricultural commodities to be hauled on interstate highways withstate weight limits and restrictions.15 Congress should appropriate $2 million to the USDA Forest Service's Cooperative Lands Forest Health Management Program. Congress16 The Mississippi Institute for Forest Inventory should receive $2 million and the USDA Forest Service should receive an additional $1million to assess wildlife, fi sheries, wetlands, scenic and natural areas, hunting and fi shing losses, tourism potential, and related topics.17 Mississippi State University’s College of Forest Resources and Forest and Wildlife Research Center should be utilized for a forest resourcesassessment.18 The following programs in the designated Presidential Disaster Areas should be funded: Low interest loans and cost share program;expansion of national agricultural insurance programs; tax credits; development of alternative fuel plants; a crop disaster direct paymentprogram; Land, Water and Timber Resources Act; Mississippi Development Authority’s Agriculture Business Loan Program.19 Direct compensation through USDA grant sources should offset the following categories: fuel, income interruption, and house damageand loss.Responsible Entities and Funding SourcesFederal governmentFederal governmentMDOTState governmentCongressMississippi State UniversityState legislature and Congress20 The state should immediately rebuild the commercial components of the port facilities in Pascagoula and Gulfport. State government21 The state legislature should lower the state tax on replacement parts and services to the industry standard. State legislature22 FEMA assistance should be secured to reimburse affected dairy producers for up to 100 gallons of diesel fuel per day. FEMA23 A dairy disaster assistance program should be funded. Federal government24 Federal funding should be provided in the amount of $17 million for the livestock assistance program. Federal government25 USDA should appropriate supplemental funds to reimburse catfi sh farmers for their losses similar to the previously funded Catfi sh FeedAssistance Program.26 The Nursery and Tropical Fruit Producer Hurricane Relief Act (H.R. 4031) should be used to provide emergency relief to growers sufferinglosses from the hurricane.27 Provisions set forth in the Florida Vegetable, Fruit and Tropical Fruit Disaster Program authorized with Section 32 funds should beexpanded.28 Congress should provide funds to assist producers through the Tree Assistance Program, authorized in the Farm Security and Rural InvestmentAct of 2002.29 Seafood infrastructure should be immediately rebuilt with funds from public and private sector sources, and temporary infrastructureshould be provided while long-term rebuilding efforts are underway.30 The United States Coast Guard and other federal agencies should lead the effort to remove hurricane-related hazards to waterwaynavigation.31 The state should set-aside tracts of land to establish public and privately funded seafood industrial parks in Hancock, Harrison, andJackson Counties.Federal government. Funding available through USDS grantsources.USDALocal growersCongressCongressPrivate entities, Mississippi Department of Marine ResourcesU.S. Coast GuardState government32 Some form of direct federal compensation should be provided as a retention incentive for fi shermen. Federal Government33 The Mississippi Department of Marine Resources should use federal funds to restore oyster reefs, shrimp nursery areas, coastal marshes,and other estuarine habitats.Mississippi Department of Marine Resources34 Riverine fl oodplains and near-shore resources should be restored and enhanced. Mississippi Department of Marine Resources

THE GOVERNOR’S COMMISSION REPORT | 173RECOMMENDATIONS35 Reefs should be revitalized through a combination of cultch deposition and turning over covered oysters to restore these reefs to theirformer productivity levels.Responsible Entities and Funding SourcesMississippi Department of Marine Resources. Funding availablethrough NOAA’s National Marine Fisheries Service, the NOAARestoration Center, the Department of Transportation, U.S. Fishand Wildlife Service, and state sources.36 Artifi cial reefs should be restored. Mississippi Department of Marine Resources. Funding availablethrough NOAA’s National Marine Fisheries Service, the NOAARestoration Center, The Department of Transportation, U.S. Fishand Wildlife Service, State and local sportfi shing organizations.37 The spotted sea trout hatchery should be rebuilt. Mississippi Department of Marine Resources. Funding availablethrough NOAA’s National Marine Fisheries Service, Department ofTransportation, U.S. Fish and Wildlife Service, and state sources.38 Sustainable marine aquaculture technologies for marine fi nfi sh and molluscan aquaculture should be developed to provide job alternativesfor the commercial fi shing and other marine related industries.39 The state should acquire property and designate it for public access and for use by water-dependent industries, including docking andservice facilities for Mississippi’s commercial and charter fi shing fl eet.40 Congressional legislation should increase quotas for migrant workers to support the seafood processing industry. CongressMississippi-Alabama Sea Grant Consortium and Mississippi Departmentof Marine Resources. Funded by NOAA.State government41 Smart growth practices and zoning ordinances should be adopted to foster mixed use development. State and local government42 Congressional funding for the Department of Interior’s Coastal Mississippi National Heritage Program should be increased to expedite therestoration of historical and cultural resources.43 Marinas should adopt best management practices, including a Clean Marina Program which can improve water quality. MarinasCongressHEALTH AND HUMAN SERVICES1 Future disaster planning should be coordinated between all health and human services providers, state and federal agencies, includingfi rst responders, using a unifi ed communication system.2 The position of health and human services disaster director should be created. Governor3 A unifi ed communications system should connect all health care providers, state and local agencies, the law enforcement community andfi rst responders.4 Uniform protocols should identify the types of patients to be transferred, the locations for the transfers, and the assistance available tofacilitate the transfer.5 Regulations should be changed to mandate that the HHS Disaster Director, working with the Department of Health, conduct one allinclusivesurvey.HHS Disaster Recovery DirectorHHS Disaster Recovery DirectorHHS Disaster Recovery DirectorHHS Disaster Recovery Director6 A single source network should coordinate access to mental health providers that is current and permanently maintained. HHS Disaster Recovery Director7 When a disaster is imminent, special needs shelters for oxygen dependent, dialysis, and non-hospitalized patients who require on-goingcare should be identifi ed in every county.8 Arrangements should be predetermined to ensure that transportation, fuel, housing, and child care are available for those expected toperform in unusual circumstances.9 A comprehensive and coordinated disaster plan should be adopted prior to June 1, 2006. Governor10 By January 1, 2008, the state should implement a GIS that improves services offered by the Department of Human Services, Departmentof Health and others.11 The legislature should amend the statute to include on the Remote Sensing/GIS Coordinating Council the State Health Offi cer and theDirector of the Department of Human Services.12 A committee of health care providers should be appointed by the governor to determine the feasibility of a Regional Health InformationOrganization accessible to all participating providers.HHS Disaster Recovery DirectorHHS Disaster Recovery Director. Funded through Social ServicesBlock Grants.State governmentState legislatureGovernor13 A “one-stop shop” for human services delivery should be created. State government

174 | ROAD MAP TO ACCOUNTABILITYRECOMMENDATIONS14 Opportunities on the Gulf Coast should be aggressively marketed to healthcare providers nationwide to ensure that physicians fully realizethe revitalization efforts underway and the accomplishments achieved.15 The state should submit a state plan amendment to the Center for Medicare and Medicaid Services (CMS) to establish a supplementalphysician retention payment based upon average commercial payor rates.16 Educational opportunities should be broadened for potential nursing students, including providing additional resources to communitycolleges and universities to increase capacity and to recruit students to their programs.17 The Commissioner of Insurance should consider the establishment of a State Insurance Pool for health care providers for business interruptioncoverage in the event of a disaster.18 The Governor and Legislature should monitor malpractice premiums trends and insurance options to ensure the availability of affordableinsurance for health care providers.19 The federal government should partially compensate some providers for increased costs and reduced revenues by establishing a “fl oor”for the wage index for providers in the affected areas equal to 1.0.20 The federal government’s share of reimbursement available for Medicaid costs associated with serving hurricane victims should beincreased.Responsible Entities and Funding SourcesHospitalsState governmentState governmentCommissioner of InsuranceGovernor and State legislatureFederal governmentCongress21 Legislation should be passed holding all states harmless for any scheduled reduction in a state’s FMAP for fi scal years 2006-2007. Congress22 Legislation should be passed holding all providers harmless for any changes to programs such as Upper Payment Limit, DisproportionateShare, and wage index for fi scal years 2006-2007.Congress23 Disaster relief funds should be available for mental health services for residents and fi rst responders Congress24 Legislation should recognize that the impact of the disaster on healthcare providers will last for many months and should provide forcoverage for affected individuals for a period of at least 24 months.25 The “uncompensated care pool” created in the Section 1115 waiver should cover services provided for dates of service through at leastthe next two years.26 Reimbursement from the federal uncompensated care pool should be defi ned as uncompensated care provided to any individual from adesignated disaster area.27 Services provided by all health care providers which are not covered in a Medicaid benefi ciary’s home state should qualify for theuncompensated care pool.28 Measures available to protect and strengthen Mississippi’s Medicaid program, including the support of federal legislation to provide 100%federal funding for all Medicaid expenditures for individuals who are Katrina survivors and for associated administrative costs, should besupported.29 The Mississippi State Department of Health (DOH) should adopt a CON exemption or waiver for rebuilding after certain qualifyingdisasters.30 The DOH should adopt a policy that allows for an expedited CON review for expenditures related exclusively to future disaster planning. DOH31 A thorough outside assessment of the Trauma System should be conducted. DOH32 An independent assessment of mental health needs by an outside consultant should provide recommendations to better align the deliveryof services and develop the infrastructure it requires.CongressFederal governmentFederal governmentFederal governmentCongressDOHDepartment of Mental Health33 State legislative action that ensures mental health benefi ciaries enjoy parity with all other medical benefi ciaries should be supported. State Legislature34 A child care plan should be coordinated by the HHS Disaster Director and funded by local businesses, medical providers and/or local andstate governments.35 The state should evaluate the potential for incentives to encourage the private sector to develop child care facilities, or partner withexisting providers, in order to make available the child care our workforce needs.36 Case management should also focus on children under state custody and ensure that displaced parents with child support obligationsmeet their responsibilities.37 DHS should develop a resource center for the aged which would provide information and services including home-based services, independentliving services, volunteerism, physical activity and wellness programs, vocational training, housing options, long-term care planning,and information related to the Medicare and Medicaid programs.HHS Disaster Director. Funded by local businesses, medicalproviders, and/or local and state governments.State governmentDHSDHS. Funded by United States Department of Human Services’Administration on Aging.

THE GOVERNOR’S COMMISSION REPORT | 175RECOMMENDATIONSResponsible Entities and Funding Sources38 Senior wellness centers should be designed to be hubs of activity for the senior community. The DHS Division of Aging in partnership with local governments.Funding may be available through Community Development BlockGrant or Social Services Block Grants.39 State legislative committees should regularly review regulations involving the reporting of diseases, isolation, and quarantine laws. State legislature40 The Department of Mental Health should consider establishing a permanent facility north of I-10. Department of Mental Health. Congressional funding should besought.41 Public health education in the classroom should be expanded and school children’s access to public health education should be increasedthrough the development of a statewide curriculum42 All hospitals should regularly review their bylaws to ensure that appropriate physician coverage will be available in-house during futurehurricanes.DOH and Department of EducationHospitals

176 | ENDNOTESENDNOTESLand Use1Governor’s Commission on Recovery,Rebuilding and Renewal. InfrastructureCommittee. Land Use Subcommittee.Notes from meetings. Oct.2005.2Mississippi Renewal Forum. MississippiRenewal Forum Summary Report. Nov.2005: 7.3Mississippi Renewal Forum. MississippiRenewal Forum Summary Report. Nov.2005: 13.4United States. Department of HomelandSecurity. Federal EmergencyManagement Agency. EmergencyManagement Institute. ManagingFloodplain Development Through theNational Flood Insurance Program- Independent Study 9 - Unit 1. Aug.1999.5United States. Department of HomelandSecurity. Federal EmergencyManagement Agency. EmergencyManagement Institute. ManagingFloodplain Development Through theNational Flood Insurance Program- Independent Study 9 - Unit 1. Aug.1999.6United States. Department of HomelandSecurity. Federal EmergencyManagement Agency. National FloodInsurance Program - Answers to QuestionsAbout the NFIP. May 2004.7United States. Department of HomelandSecurity. Federal EmergencyManagement Agency. National FloodInsurance Program - Answers to QuestionsAbout the NFIP. May 2004.8United States. Federal EmergencyManagement Agency. “Hurricane KatrinaFlood Recovery.” 18 Nov. 2005.http://www.fema.gov/hazards/floods/recoverydata/katrina_ms_index.shtm.9Holmes, Charles. (Central MississippiPlanning and Development District).Personal interview. 22 Nov. 2005.10Mississippi Renewal Forum. MississippiRenewal Forum Summary Report. Nov.2005: 11.Transportation1Dash, Tracy. “Working On The Railroad.”Sun Herald [Gulfport] 27 Oct.2005.2Brown, Larry L. “Butch”. “Re: FHWAER (Emergency Relief) Funds Request.”Letter to Governor HaleyBarbour. 19 Oct. 2005.3Coast Transit Authority. Emergency

THE GOVERNOR’S COMMISSION REPORT | 177Public Transportation Plan/Hancock,Harrison and Jackson Counties, Mississippi.30 Sept. 2005.4Coast Transit Authority. EmergencyPublic Transportation Plan/Hancock,Harrison and Jackson Counties, Mississippi.30 Sept. 2005.5Allee, Donald R. “Mississippi State PortAuthority Huricane Katrina ConditionSurvey Summary.” Memo to CharlesOzier. 29 Nov. 2005.6McAndrews, Mark. Memo to CharlesOzier addressing damages sustained toJackson County Port Authority/Portof Pascagoula from Hurricane Katrina.Nov. 2005.7McAndrews, Mark. Memo to CharlesOzier addressing damages sustained toJackson County Port Authority/Portof Pascagoula from Hurricane Katrina.Nov. 2005.8Hemphill, Jerry. “Hurricane KatrinaDamage Assessment Report/ PortBienville Industrial Park/HancockCounty, Mississippi. “Memo to CharlesOzier. 11 Nov. 2005.9United States. Federal Railroad Administration.Highway-Rail IncidentsReported On Form FRA F6180-57.Railroad - CSX Transportation. State- Mississippi. 2005. 10Coast Transit Authority. EmergencyPublic Transportation Plan/Hancock,Harrison and Jackson Counties, Mississippi.30 Sept. 2005.11Kevin Coggin, personal interview, 11Nov. 2005.12Hemphill, Jerry. “Comments of theHancock County Port & HarborCommission on the Final Report Draft(11/29/05) Intermodal TransportationCommittee.” Memo to Charles Ozier.6 Dec. 2005.Public Services1Mississippi State. Mississippi PublicService Commission. 9 Dec. 2005.2Mississippi State. Mississippi PublicService Commission. 9 Dec. 2005.3Tusa Consulting Services, Inc. “CoastalMississippi and Louisiana Radio SystemOverview,” 2005.4Mississippi State. Senate Bill 2514. 2005.5RCC Consultants, Inc. “ExecutiveSummary of the May 2003 WirelessCommunication Assessment,” 2005.6RCC Consultants, Inc. “ExecutiveSummary of the May 2003 WirelessCommunication Assessment,” 2005.7Geospatial One Stop. “GIS for theGulf.” Housing1Waldron, Tom, Brandon Roberts andAndrew Reamer. “Working Hard, FallingShort: America’s Working Families andthe Pursuit of Economic Security.” AnnieE. Casey Foundation: Baltimore, MD.October 2004.2Wial, Howard and Jeff Ricket. “TheState of U.S. Industries – U.S. Hotels andtheir Workers: Room for Improvement.”AFL-CIO Working for America Institute:Washington, DC. September 2002.3Belsky, Eric S., Nicholas Retsinas andMark Duda. “The Financial Returns toLow-Income Homeownership.” JointCenter for Housing Studies. HarvardUniversity. Copyright President andFellows of Harvard College. September2005.4John, David C. “Providing FloodInsurance After a Disaster is a Mistake.”The Heritage Foundation: WashingtonDC. 19 Oct. 2005. 5Fischer, Will and Barbara Sard.“Bringing Katrina’s Poorest VictimsHome.” Center on Budget and PolicyPriorities: Washington, DC. 3 Nov. 2005.Tourism1Reports received by the Sun Herald.2TNS. Mississippi Gulf Coast Convention& Visitors Bureau. MississippiCoast Visitors Profile, 2004.3Mississippi Development Authority;Mississippi Department of EmploymentSecurity.4Mississippi Department of EmploymentSecurity.5Mississippi Development Authority;Mississippi Department of EmploymentSecurity.6TNS. Mississippi Coast Visitors Profile.7Tourism Committee. Field Research,2005.8Sun Herald, 25 Oct. 2005.9Becker, Tom (President, Gulf CoastCharter Boat Association) interview. 10Nov. 2005.10Tourism Committee. Field Research,2005.11By Moody’s|Economy.com, Inc.Précis© Metro Reports for Gulfport-Biloxi and Pascagoula MSAs. 25 Sept.2005.12Mississippi Department of EmploymentSecurity. Labor Market Datareports, 2005; Mississippi State TaxCommission. Retail sales tax collectionsreports, 2005.13Tourism Committee. Field Research,2005.14National Trust for Historic Preservation,2005.15Tourism Committee. Field Research,2005.16Mississippi Gulf Coast Golf Association.Inventory analysis, 2005.Small Business1Mississippi Department of EmploymentSecurity, Mississippi Business Population.2SBA Business Profile, MDES OccupationalReports.3SBA, MDES.4American Red Cross, Hurricane KatrinaDamage Assessment, Sept. 2005.5Committee and area Chambers of Commercesurveys.6Committee and area Chambers of Commercesurveys.

178 | ENDNOTES7Mississippi Development Authority.Agriculture, Forestryand Marine Resources1Mississippi State. Mississippi ForestryCommission; Mississippi Forestry Association.A Response, Recovery, andRenewal Plan for Mississippi’s ForestResource. 19 Oct. 2005: 2.2Governor’s Commission. Subcommitteeon Forest Resources. Committeeresearch. Nov. 2005.3Subcommittee on Forest Resources.Committee Research. Nov. 2005.423 U.S.C.A. § 127(a) (2004).5Subcommittee on Forest Resources.Committee Research. Nov. 2005.6Subcommittee on Forest Resources.Committee Research. Nov. 2005.7Subcommittee on Forest Resources.Committee Research. Nov. 2005.8Lester Spell, Jr., D.V.M., “RecommendedAssistance for Agriculture Damages inMississippi Due to Hurricanes and OtherWeather Related Conditions in 2005.”17 Oct. 2005: 2.9United States. Congress. House. Nurseryand Tropical Fruit Producer HurricaneRelief Act (Introduced in House).H.R. 4031. 7 Oct. 2005.Defense andGovernment Contracting1Committee Research.2Northrop-Grumman reports.3NASA, Center Operations Directorate,NASW 02010 Task Order 12.4NASA, Center Operations Directorate,NASW 02010 Task Order 12.5NASA.Education1Bounds, Hank (State Superintendent,Mississippi Department of Education).Personal interview. 22 Nov. 2005.2Joachim, Pat (University of SouthernMississippi). Personal interview. 17 Nov.2005.3Favre, Tommy D. (Mississippi Departmentof Employment Security). Personalinterview. 12 Nov. 2005.4Favre, Tommy D. (Mississippi Departmentof Employment Security). Personalinterview. 12 Nov. 2005.Health and HumanServices1Governor’s Commission on Recovery,Rebuilding & Renewal. Committee onHealth & Human Services. Questionnaire:Summary of Responses. 6 Dec.2005.2Rockville City Government. “Mappingand Geographic Information System: ABird’s Eye View to Our City.” Rockville,Maryland. 28 Nov. 2005. ; ESRI.Geography Matters: An ESRI WhitePaper. Redlands, California. Sept. 2002.3Mississippi State. House Bill 861. 2003.4HHS 115 waiver; HHS 1135 waiver.5Coalition for Fairness in Mental IllnessCoverage. “Pass Mental Health ParityNow! End Discriminatory MentalHealth Coverage.” April 2003; “EmployersShould Support Mental HealthParity.” March 2003.Non-GovernmentalOrganizations1Government Accounting Office, SenateFinance Committee.2Chronicle of Philanthropy.Finance1Mississippi Business Finance Corporation.Rural Economic DevelopmentGuidelines. 1 July 1997.2Mississippi Business Finance Corporation.Rural Economic DevelopmentGuidelines. 1 July 1997.PolicyRecommendations1The Guiding Principles for Rebuildingthe Mississippi Gulf Coast representbasic premises found in HolisticDisaster Recovery: Ideas for BuildingLocal Sustainability After a NaturalDisaster. 2001; Guiding Principles forthe Quality Reconstruction of EasternNorth Carolina. 2000.2See Appendix A: Disaster RecoveryAssistance. www.governorscommission.com.