Essay on The Case for, or Against, New Orleans

2221 Words Jun 24th, 2012 9 Pages
The Case For, or Against, New Orleans

Cost-Benefit Assessment

Too asses and give recommendation on whether or not to rebuild the city of new Orleans I will be examining the cost to benefits of such a rebuild and the impact and benefits it will have towards the city. In the CBA, I will be examining the cost of rebuilding New Orleans to pre Katrina conditions without making any additional upgrades to the levees and infrastructure. This will give me a more accurate cost model to base my recommendation on.

As for the benefits I will examine the benefits of recovered losses when comparing pre Katrina data to post Katrina dat. The areas where I will be examining are tourism recovered, port operations recovered, wages recovered,
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Department of Homeland Security (DHS): $285 (80) million * U.S. Department of Defense (DOD): $4.6 billion * CDFI Fund: $400 (200) million. * FEMA’s National Flood Insurance Program (NFIP): $12.6 billion. * On May 9, 2006, Secretary Jackson approved Louisiana’s initial supplemental CDBG Disaster Action Plan and awarded the state $368.4 million to help meet the state’s infrastructure needs, provide interest-free small business bridge loans and support long-term planning efforts. On May 30, 2006, Secretary Jackson approved an amended plan and awarded an additional $4.6 billion of the state’s original $6.2 billion to fund Louisiana’s Road Home Program. This program provides up to $150,000 to eligible homeowners whose primary residences were located outside pre-Katrina designated flood zones and were destroyed or severely damaged following Hurricanes Katrina and Rita. (Hurricane Katrina: What Government is Doing, 2006)
ESTIMATED TOTAL: $35.64billion
Benefits
The benefits as explained above will be the lifeblood of New Orleans. These sectors include tourism, port operations, wages, and taxes. I feel that examining these areas will give us a better look at the microeconomics of New Orleans and allows us to better estimate the benefits of a recovery effort.

Also to better understand the value of these benefits I will be discounting the FV of the benefits by three important discount rates.

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