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Pelosi: A way to ease $2 billion levee bill needs to found

06:55 PM CDT on Tuesday, July 22, 2008

Maya Rodriguez / Eyewitness News

Congressional Democrats wrapped up their Gulf Coast visit today in New Orleans; they spent four days touring areas hit hard by Hurricane Katrina. It's a trip that could have big implications for the state, especially on the question of spending billions of dollars for levee improvements.

Video: Watch the Story

With the state facing a potential payout of nearly $ 2 billion dollars for levee improvements, House Speaker Nancy Pelosi said today she will look for a way to lessen that financial burden when they return to Capitol Hill. 

"That is so important to how we go forward," Pelosi said.

"We are committed to relieving any cost share, any excessive financial burden among Gulf Coast states," said Rep. Jim Clyburn, D-South Carolina and Majority Whip

At issue is how will Louisiana pay its cost share within three years.

Gov. Bobby Jindal says the state may have to pay it with royalties generated by offshore drilling -- oil royalties that the state fought to get from Congress in the first place.

House leaders rejected the idea of using that money because it's supposed to go to coastal restoration projects.

"What we'd like to do is work with the governor to see how we can work with the president to stretch this out in a way that does not say, 'You're giving us money with this one hand, but we're going to give it back to you with this other hand,’" Pelosi said.

“By the largest majority the state has ever voted on a constitutional amendment, they said they wanted the OCS money put into the restoration of coastal wetlands of the State of Louisiana," Rep. Charlie Melancon, D-Donaldsonville, said.

More than two weeks ago, Eyewitness News traveled to Terrebonne Parish, where the levee district says it has serious concerns -- worried that the state would pay the cost share by diverting money away from storm protection for bayou communities.

"Having to pay that 30 percent in a three-year period is going to take away any of the money we would be using in the rest of the state for flood protection," said Windell Curole from Terrebonne Levee District.

"We have to find another way, so what I'm saying is let's not take it from what is probably the biggest factor in the safety of the people, the growth of the economy, the prospects for the future," Pelosi said.

Speaker Pelosi stopped just short of saying that the cost share should be completely ignored, but she did leave the door open to possibly lowering the amount and spreading out the payment over a longer period of time.