Originally published by U.S. Chamber of Commerce Foundation
By Patty Riddlebarger, Vice President, Corporate Social Responsibility, Entergy Corporation
Aug. 29, 2005, will forever be remembered as the day that changed the history of New Orleans, one of America’s most iconic cities. In the aftermath of Hurricane Katrina, one of the costliest natural disasters to hit the United States, an economic line of demarcation laid bare the difference between hope and hopelessness and, in some cases, life and death.
Much of the suffering and devastation associated with Hurricane Katrina can be traced directly to the extreme poverty that far too many New Orleans residents struggle with daily.
As the only Fortune 500 company headquartered in the city during the disaster, our shareholders recognized our unique responsibility to act thoughtfully and decisively. Wayne Leonard, then-chairman and CEO of Entergy, emphasized this urgency by expressing, “If we rally for stronger levees, better flood protection, and marsh restoration, but don’t address the underlying causes of poverty that pervade our region, that would be the greatest tragedy of all.”
So, as the rebuilding began, our approach was focused on eliminating or reducing socio-economic inequities and improving the quality of life for our most vulnerable citizens.
Katrina was a once-in-a-lifetime moment to work with our community partners and create a New Orleans where neighborhoods are safe, businesses thrive, schools excel, and families achieve the dream of homeownership, all while fostering a culture of respect for the environment and celebration of diversity and inclusion. To that end, Entergy shareholders have invested some $95 million in philanthropic funds and more than $1.6 million in volunteer hours not just to rebuild, but to create a stronger, more resilient, and vibrant community that offers opportunity for all of its residents.
Affordable housing
One of the most immediate needs post-Katrina was building or rebuilding affordable housing to enable families to return home. Entergy, with organizations like Volunteers of America, SBP USA, and Habitat for Humanity, partnered together to help build or rebuild 1,300 single or multi-family homes. We focused on supporting innovative partnerships that leveraged federal and other funding sources. Entergy provided critical seed funding to Volunteers of America that enabled it to hire a team with the financial expertise to utilize $80 million in new market tax credits and activate large-scale, multi-family housing initiatives.
Placing families on the path to economic stability
An enduring lesson from Katrina was that when disaster strikes, the most vulnerable communities suffer most. To lessen the impact of future disasters, we took proactive steps to fortify low-income families for economic stability by implementing programs that not only increase household income but also facilitate savings, reduce debt, enhance credit ratings, and promote generational wealth through homeownership. In partnership with the United Way of Southeast Louisiana, Entergy launched the Individual Development Accounts (IDA) Project to help low-income individuals and families save money and build a strong financial foundation to recover and thrive.
Since 2006, the IDA Project has resulted in $58 million in asset purchases, transforming lives across Southeast Louisiana. More than 430 individuals, primarily single mothers, have become first-time homeowners.
Transforming public education
Before Hurricane Katrina, New Orleans public schools ranked as the second-lowest performing school districts in Louisiana, with 83% of students in failing schools. Since 2005, our shareholders have invested $30 million in education in Orleans Parish. Today, there are zero failing schools across the parish. Although much work remains to be done, New Orleans students are better prepared for lifelong success today compared to pre-Katrina. Our strategic investments are targeted to organizations that deliver a data-driven approach to metrics that matter—attendance, behavior, growth in academics, and trauma-informed wrap-around services and supports. Our strategic partners have included New Schools for New Orleans, Teach for America, KIPP New Orleans, The Posse Foundation, College Beyond, College Track, First Line Schools, and Start the Adventures in Reading.
Providing high-quality childcare for low-income families
Katrina destroyed 75% of childcare centers in Orleans Parish. With post-storm waiting lists of 16-to-1, the lack of childcare was a major obstacle in the city’s recovery. Entergy and our partners focused attention and resources on the issue through advocacy to draw down state and federal funding resources. Working with organizations like the Ready Louisiana Coalition, Success by Six, the Campaign for Grade Level Reading, and the Louisiana Public Policy Institute, these advocacy efforts culminated in the creation of $42 million in annual funding from municipal and state resources to provide early care and education for low-income families in Orleans Parish.
Greening New Orleans by creating 130+ miles of bike lanes and walkways
Before Hurricane Katrina, New Orleans had fewer than 11 miles of bike lanes. Although the city was awarded millions of dollars to resurface damaged roads through the federal Submerged Roads Program, the funding was restricted to capital uses only. Through a unique public-private partnership between the City of New Orleans and the Louisiana Public Health Institute, a grant from the Entergy Charitable Foundation underwrote five years of salary expenses for the transportation engineer who designed and oversaw the creation of more than 130 miles of bike lanes and pedestrian pathways.
Restoring our urban forest
The flood waters that covered 80% of Orleans Parish wreaked havoc with the city’s urban forest, destroying some 200,000 trees and resulting in New Orleans’ designation as the most de-forested urban center in the nation. Since Hurricane Katrina, Entergy has partnered with Nola Tree Project, Sustaining Our Urban Landscape (S.O.U.L.), Sankofa, Lafitte Greenway, and other nonprofits to restore many of the trees that were lost during the storm.
Investing in our future workforce through workforce development
The presence of a skilled and ready workforce ranks among the most important factors for site selection when companies are seeking to expand or relocate. To that end, Entergy has partnered with the state, colleges and universities, and nonprofit partners to develop programs that create pathways to employment in high-demand, living-wage jobs. As the first corporate partner for STEM NOLA, we are fueling the imagination and dreams of 30,000 students in Louisiana each year by providing hands-on STEM learning opportunities.
Looking ahead
As we reflect on 20 years since Hurricane Katrina made landfall, we recognize the significant strides that have been made and understand that our work is far from complete. This blog honors our employees and community partners whose dedication and efforts have forged a path toward a brighter future for New Orleans.
Together, we continue to power life in the communities we’re privileged to serve, working tirelessly to achieve unprecedented progress that deserves celebration and recognition.
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