BAY ST. LOUIS, Miss. -- A FEMA contract to house Katrina evacuees on cruise ships, roundly blasted as exorbitant government spending, is currently costing U.S. taxpayers substantially more per person than some of its harshest critics estimated -- nearly $250 per person per night, according to figures obtained by MSNBC.com.
At that rate, the Federal Emergency Management Agency would spend more than $175,000 for each family of four that lives for six months aboard one of the three ships provided under the $236 million contract with Carnival Cruise Lines. Room service also is included in that price tag -- three meals a day and snacks.
FEMA says it cannot calculate the precise costs per person for the floating hotels because it does not track occupancy of the ships in that fashion. The agency says it knows only how many cabins are occupied on the Ecstasy and Sensation, docked in New Orleans, and the Holiday, docked in Pascagoula, Miss., not how many people are living in each cabin.
“To be honest with you, I really don’t know,” FEMA spokeswoman Nicol Andrews said in response to repeated requests for a head count. Nor does anyone else in the federal government, said the Washington, D.C.-based Andrews, who said she could not get the figures “unless I went on board and knocked on doors.”
But it took Carnival Cruises Lines just two hours to provide the current headcount when asked by MSNBC.com. According to Carnival public relations coordinator Irene Liu, on Wednesday there were 5,370 evacuees living aboard the three ships, 2,418 on the Ecstasy, 1,996 on the Sensation and 956 on the Holiday.
That count is well below the 7,000-passenger combined capacity for the three ships, 2,600 each for the Ecstasy and Sensation and 1,800 for the Holiday.
Cost expected to keep climbing
MSNBC.com arrived at the current $244 per-night, per-person cost of the cruise ship housing by dividing the cost of the contract by the current number of inhabitants. With FEMA’s own releases showing a steady decline in occupancy of the cruise ships since late November, that cost is presumably rising and will continue to do so until the contract expires in early March.
The counting of occupied cabins rather than evacuees is a departure from FEMA’s initial publicity about the use of the ships. In a Sept. 4 press release, then-FEMA Director Michael Brown spoke of the Sensation and the Ecstasy, originally sent to Galveston, Texas, as having room for “about 2,600 passengers each” and the Holiday, first docked in Mobile, Ala., as providing space for “about 1,800 displaced persons.” Brown later resigned his job amid charges of incompetence.
The switch from counting evacuees to cabins occurred because “in some cabins, every single bed is filled and in other cabins it is a single city worker,” Andrews said. “Those ships are filled to capacity.” So is a fourth ship owned by a different cruise line and docked in St. Bernard’s Parish, she said.
Andrews went on to say that “if the ships are filled to capacity, it’s $190 per night” per person. When asked how FEMA could calculate a per-person, per-night cost without knowing how many people were on the ships, Andrews acknowledged it is not possible.
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Cost questions have dogged the Carnival contract since it first became public. Sens. Tom Coburn, R-Okla., and Barack Obama, D-Ill., called it a “grossly overpriced sweetheart deal.” Coburn aides noted that even with the ships housing their full 7,000-passenger capacity, the weekly cost for each person was more than double the price of some seven-day Caribbean cruises.
In seeking a congressional probe of the contract’s “grossly over-inflated costs,” Mississippi Rep. Bennie G. Thompson noted at the time that housing a family of four on one of the ships for six months might cost as much as $120,000, the price of a single-family home “in many of the areas struck by the hurricane.”
'It is pitiful'
Told this week by MSNBC.com that it might cost far more than that, Thompson, the ranking Democrat on the House Committee on Homeland Security, said: “It is pitiful that FEMA's only stable housing program has consisted of overpaying for cruise ships that may not be fully occupied. … Sadly, that money could have gone to the tens of thousands living in tents and travel trailers this holiday season."
Andrews, the FEMA spokeswoman, defended the contract as the only way “to house people in areas where all of the housing had been wiped out. …Congressman Thompson, of all people, would understand the need to have some emergency housing in an area where the entire housing stock was wiped out.”
Andrews said there is not a cost-effective way in which the government can get out of the contract before it’s completed but “when the term of the contract is up, we’ll find other places for the people to go.”
The cruise ship shelter also is popular with many of those living on board the luxury liners.
Waveland, Miss., resident Edna Summers had nothing but praise for the program. She spent time on the Holiday, traveling with it when it sailed from Mobile to Pascagoula.
"We had maids cleaning the room," she told MSNBC.com. "They cooked. I didn't have to do anything but take a shower and eat."
Summers said she also received FEMA assistance on the boat, including help in getting a replacement copy of her birth certificate and preparing for the high school equivalency exam. "It was a great experience because I never had anything like that," she said.
Cruise line defends break-even deal
Carnival representatives also defend the deal as one in which the company will make no more money than it would have if the ships were conducting their normal tourist cruises.
The Miami-based company, which operates a total of 79 ships, reported last week that its fourth-quarter profits were up 20 percent.
“They’re not hurting at all,” said Jennifer Gore, the Democrats’ communications director for the Committee on Homeland Security.
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instead of putting them on a ship and waisting our tax dollars, they should of saved the money had them stay at a shelter where they are still being provided for and just give them the $120,000 after 6months to build or even buy a house at that. but instead we would rather waste all of it in a 6 month time period. I mean come on now lets start thinking logically aabout this.
chris, rancho cucamonga,CA (Sent Dec 22, 2005 8:51:13 PM)
Why not place these people up in the hundreds of LOCAL hotels in the immediate and surrounding areas at far less cost? Wouldn't that also benefit the business owners in the area who are economically crippled due to the lack of tourism in the area for years to come?
$250 per person per night is exorbitant to say the least, and another example of inefficient spending. I'm ashamed of the current Republican administration for not doing more to both reduce government overall spending and government waste.
Dave, New Jersey (Sent Dec 22, 2005 8:54:03 PM)
Clearly, the comments posted are coming from priveleged people who have no concept of the enormous economic and educational disadvantage these people have lived their ENTIRE lives in. Yes, this money is being seriously mismanaged, but the people who should be attacked are the people who decided to shell it out that way, not the people who are using the aid offered. I don't think any of you would pass up the opportunity either.
Angelica K. (Sent Dec 22, 2005 8:56:27 PM)
It is sad what these people have had to endure. Blame can be placed on individuals, state government & federal government. $250 per person per night? Absolutely absurd! These people are living like kings while I work & live paycheck to paycheck as a single parent. The big question in my mind; is this really HELPING these victims or allowing their minds to get used to this lavish lifestyle? I'll gladly accept a LOT less than $250 per person per night & open my home to a couple guests
Bryan T, Portland ME (Sent Dec 22, 2005 8:56:43 PM)
Our military sleeps in tents and we are spending $7500 a month, of tax payers money. Why aren't these people working on the ship for room and board, or cleaning up there city that they refused to leave. Instead of cutting Medicare, cut That $7500 a month housing budget and give it to the elderly.
If they find corruption, sent them to a State Penn, instead of a Federal country club.
Chuck Holz (Sent Dec 22, 2005 8:57:47 PM)
This is a really sad commentary. The money could have done SO much more good. What a big shame!
Gordon, San Diego, CA (Sent Dec 22, 2005 8:57:54 PM)
Having government assistance as a band-aid is fine, the immediate response is necessary to make sure people don't starve with the confusion (especially the children) but there comes a point when enough is enough! They need to survive on their own, not have our tax dollers paying for three meals a day! THREE MEALS A DAY!!!! And SNACKS!
Randi, Coventry (Sent Dec 22, 2005 8:58:53 PM)
If FEMA was properly prepared to respond to the Hurricane Katrina victims in the first place, perhaps there wouldn't be a need for the cruise ship program.
Criticizing the victims who have lost everything including family and friends is wrong.
Michele, Cuyahoga Falls, OH (Sent Dec 22, 2005 9:02:25 PM)
Carnival will be making no more profit than if they were running a regular cruise???!! Shame on them! We are paying rates that are normally charged for weekly trips, for months on end...and shame on our government for agreeing to do so. Could they have not negotiated a better deal with our tax dollars?
Ginny Neuckranz, Winnetka, IL (Sent Dec 22, 2005 9:02:35 PM)
The bottom line is tax dollars - someone will pay for it and is us the working class, remember FEMA now has a reputation and the tax payers are the only ones who at the end of the mess pays the bill. I needed extra money to fix my home , after going through hours of phone calls to FEMA they dinied the help, they to talk to my inssurance company to get more money. Don't get me wrong, I love this country but some things could change.
Hector Vargas, North lauderdale Florida (Sent Dec 22, 2005 9:03:43 PM)
Yes, My tax dollars at work!!!!! It's time to cut these people loose. They need to take care of themselves. They all had plenty of warning and had a chance to leave. But decided to stay so they could blame somebody else(the government)for their problems. And have the tax payers take care of them. What's this, the lady in the article said she got her GED on the cruise ship???? Why did she not get it one her own???? I did. My family is not rich, I completed school, got a job, and am now self sufficient. People, quit blaming the government for your problems and take a little responsibility for your actions.
Tony, Gresham Oregon (Sent Dec 22, 2005 9:03:57 PM)
Listen to the BIG 870 am at night !
I have friends of mine who went to the Katrina hit areas and the problems are, some (Not ALL) of these people have college degrees and/or a trade and work experience but nowhere to get a job, nor nowhere to live or even a car to get them there. Most of the contractors are not local so the jobs are hard to get.
You can't feed a family or break even on a part time BK server job.
If you think you can, quit your nice paying job and go get one for a few months and blog back then tell us how you paid all your bills.
They have no cars due to the fact the insurance companies will not pay for there flooded cars.
No house due to the insurance companies not paying for there houses.
No money because there saving accounts are gone just to survive.
No jobs because there place of business is no more.
No way to travel because it takes money to get from point "A" to "B".
If you have a family you can't leave the family.
Before you judge these folks, go to New O or the MISS Coast and put yourselves in there shoes.
If you want to know what is going on in New O listen to the BIG 870 am radio at night.
You can hear it for over 1000 miles from New O.
True, allot of these folks can move out and get jobs and help from other family members and friends, but some have no other alternative.
For them my tax money is well spent. For the other large percentage of folks, we need a plan!
W.R. Newbur (Sent Dec 22, 2005 9:06:09 PM)
Unbelievable!! Rather than being waited on hand and foot, FEMA should at least require that these people document some kind of a job seeking effort. But the true fault here lies with FEMA - just one more example of its incompetence (along with Chertoff and yes Bush who put Michael Brown in charge in the first place). And why can't FEMA negotiate an early termination of the ship leases? Even with a reasonable early termination penalty, it would probably still be cheaper to house these people in local motels, old military barracks, or whatever - FEMA's had enough time now to look into this! But no, gevernment mentality is just to wait and let the contract run its course, and say "oh well."
Bob, Orlando, FL (Sent Dec 22, 2005 9:07:00 PM)
Government aid should only last for so long. Remember they are spending our tax dollars here. Many of us tax payers only get a small percentage of the tax dollars back that we pay in every year, and I find it appalling that these people are still riding around in a cruise ship instead of doing something for themselves. It's time to re-evaluate this contract with the cruise lines and get these people off their butts... make them work for a living like those of us that are supporting them through our taxes.
John, Portland, Oregon (Sent Dec 22, 2005 9:08:51 PM)
You sound like a bunch of inconsiderate **holes. These people lost everything. Where's your heart!
V Houston (Sent Dec 22, 2005 9:10:35 PM)
It is incredible how the goverment spends the taxpayer's dollars. This does not do a thing for these people. Comes March, good luck getting them off the ship. Only in America.
Ivan Gallo (Sent Dec 22, 2005 9:12:11 PM)
You have got to be kidding me!!! These people are sitting on their butts soaking up maid service, room service, and all the luxuries of a cruise ship and they have had all this time to get out and get a job..not to mention those 7 pesky days of warning they all had of what was in store for Louisiana and surrounding areas!! I've busted my tail my whole life and STILL have never step foot on a cruise ship...I had no idea laziness was the key to getting what you wanted.
Angela, Oklahoma (Sent Dec 22, 2005 9:15:30 PM)
Who could possibly have negotiated this kind of deal? Carnival must have been dancing all the way to the bank after those negations! It is criminal that the cost of this "program" per person is more than the cost of a new house. These people could have had free housing with the many generous families willing to help around the US. It is hard to feel sorry for victims that are getting room and maid service, as well as free, prepared meals without having to do a thing to help themselves.
SKM, Rochester, NY (Sent Dec 22, 2005 9:18:41 PM)
The people on these ships should be advised now of what is expected of them when the ships must be vacated. The government should not be waiting until the last minute to have them move. They should start by setting and meeting goals of having the ships vacated regardless of the cost per passenger. Otherwise, when the last day comes and everyone has to move, it will either be a disaster for those left or the government will again have to extend the date. We have seen this in Washington State, where the motel stays had to be extended past the planned date. This extension was granted because the people themselves did nothing to find permanent housing or jobs. If they start moving 35% off per month, they might just make the deadline of March. If they don't, guess what will happen,
jackson howell Tacoma Washington (Sent Dec 22, 2005 9:18:55 PM)
These people have lost EVERYTHING, their homes, their clothes, their jobs, their way of life. Give them a break, they didn't ask to be put up on a cruise ship, that was the government's decision not theirs.
Linda Sauer, Germantown, MD (Sent Dec 22, 2005 9:19:17 PM)
So corrupt, America wasting money. Why of course it is sad for these people, why are they even encouraged to get jobs whn they are getting 3 meals daily and snacks for nothing?
Brian, Long Island, NY (Sent Dec 22, 2005 9:20:31 PM)
Carnival Cruise line is making a ton of money from Hurricane Katrina which they are gladly taking. And yet Carnival Cruise line pays almost no United States taxes as they sail under a foreign flag. So the money that they are earning from this sweetheart deal is also tax free. The real disgrace is the cruise lines that sail out of US ports, carrying thousands of US citizens, sail under foreign flags and do not pay taxes!
A. Ruel, New York City (Sent Dec 22, 2005 9:22:04 PM)
This really shouldnt surprise anyone that FEMA would put these victums of Katrina on a Luxury Cruise Ship. Over-spending and the waste of our tax-dollars has been going on for decades. Its just now that we see how foolishly the people "in-charge" spend our hard earned wages to make sure that those that dont have any resources are comfortable and well fed. Gee, I think Ill quit my job tomorrow and head on down to the cruise ships. I know that working wont get a a ticket on a Luxury Cruise, but being "useless" & "helpless" will get me on a nice "Ocean Liner" for 6 months !!!! KEWL !!
T C Russell, Springfield, ILL (Sent Dec 22, 2005 9:23:25 PM)
Why does everything have to be a rip-off? Are there no honest people anymore?
Lets get these people into all the FEMA trailers sitting empty that we read about. This is stupidity. This is FEMA. This is our Government. This is America.
don, new albany, indiana (Sent Dec 22, 2005 9:23:27 PM)
This same amount of money could have provided a whole house for families in another state. Why consume these obscene amounts of money and then there will still be complaning because there will be nothing in the end?
Roxanne, Sheboygan, WI (Sent Dec 22, 2005 9:24:00 PM)
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