This is from The Best of New Orleans from last summer. I have a feeling this is a dupe from a few days ago, but on quick scan I didn't see it (and I figured it was worth posting again in case it was missed). Pay specific attention to the Project Impact, a very positive program that Clinton and James Lee Witt put in place in 1997, which Bush cut completely in March of 2001. I've personally bookmarked this article for future reference...
Edited to add four paragraphs...
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As a result, some state and local emergency managers say, it's become more difficult to get the equipment and funds they need to most effectively deal with disasters. In Louisiana, requests for flood mitigation funds were rejected by FEMA this summer. (See sidebar.) In North Carolina, a state also regularly threatened by hurricanes and floods, FEMA recently refused the state's request to buy backup generators for emergency support facilities. And the budget cuts have halved the funding for a mitigation program that saved an estimated $8.8 million in recovery costs in three eastern North Carolina communities alone after 1999's Hurricane Floyd.
Consequently, the residents of these and other disaster-prone states will find the government less able to help them when help is needed most, and both states and the federal government will be forced to shoulder more recovery costs after disasters strike.
In addition, the White House has pushed for privatization of essential government services, including disaster management, and merged FEMA into the Department of Homeland Security -- where, critics say, natural disaster programs are often sidelined by counter-terrorism programs. Along the way, morale at FEMA has plummeted, and many of the agency's most experienced personnel have left for work in other government agencies or private corporations.
In June, Pleasant Mann, a 16-year FEMA veteran who heads the agency's government employee union, wrote members of Congress to warn of the agency's decay. "Over the past three-and-one-half years, FEMA has gone from being a model agency to being one where funds are being misspent, employee morale has fallen, and our nation's emergency management capability is being eroded," he wrote. "Our professional staff are being systematically replaced by politically connected novices and contractors."
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http://www.bestofneworleans.com/dispatch/2004-09-28/cover_story.html