Lots of cities have blight problems. Lots of cities have school problems. But what happens when they are one in the same? New Orleans has 40 school buildings boarded up and mouldering, and being caught at the crossroads of ineffective government is only keeping the problem around.
The buildings were in bad shape before the flood. They are in worse shape after the flood. They are in even worse shape now that nothing has been done to them for 4 years. Why not? Because Feds, state and local officials are still haggling over how much damage was done, and how much federal aid that damage qualifies for, and where the money for remediation will come from.
Until that decision is made, neither the locals nor the state can demolish the buildings. Doing so would remove many chances of recieving remediation money. Without the remediation money, the buildings cannot be effectively renovated. I don't know if this would be considered a "donut hole" or a "catch-22" but I do know that it is all FUBAR.
If I was a health care reform opponent, looking to promote the idea that government cannot fix anything, I'd have my ass down in New Orleans with a camera and a pile of FOIA requests.