Moorhead – Governor Tim Pawlenty along with Senator Keith Langseth and Representative Morrie Lanning today announced a proposed flood relief and recovery package to help residents and communities in the Red River Valley recover from spring flooding that included a record high crest in the Moorhead area.

“There were some anxious times and incredible efforts by many people when the water was rising and now we need to pitch in to help our neighbors recover,” Governor Pawlenty said. “This package will supplement the federal, state, and local work already underway.”

The Governor said the package is preliminary and the numbers will change as damage assessments are finalized. So far, the state estimates the package will need to be at least $17 million. The package is in addition to proposed bonding for future flood mitigation projects.

The package includes the entire estimated $9.18 million state and local match for federal FEMA disaster assistance. Per federal policy, FEMA reimburses 75 percent of eligible costs associated with public infrastructure damage caused by the disaster. The state and local communities are responsible for the remaining 25 percent. The funding announced by the Governor, Senator Langseth and Representative Lanning means that city and county governments will not have to pay a share of the FEMA eligible expenses.

These state and federal dollars are used to help individual households and to rebuild public infrastructure in the disaster area declared by the President.

The Governor is also proposing $2.7 million for the Homeowner Quick Start program that offers forgivable, no-interest loans up to $30,000 per house in the counties that have been declared a disaster area.

Quick Start loans can be used for capital improvements to return houses to their pre-disaster condition, to replace a destroyed home, or to repair a one to four unit rental property.

No principal or interest payments are required during the term of the loan and the loan will be forgiven in 10 years as long as the home is the primary residence of the borrower.

FEMA pays homeowners to repair damage from the disaster up to $30,300. Homeowners may also apply for a Small Business Administration disaster loan for additional repair assistance.

The package contains additional assistance including:

Transportation - $2.9 million
· $2.7 million to reconstruct and repair trunk highways and trunk highway bridges.
· $200,000 from the trunk highway fund for transportation infrastructure operation and maintenance related to the disaster.

Board of Water and Soil Resources - $1.5 million
· $500,000 to acquire easements from landowners in the disaster area to protect soil and water quality and for flood control efforts.
· $1 million to install, repair, or rehabilitate erosion and sediment control projects in the disaster area including road and culvert washouts.

Department of Revenue - $250,000
· $250,000 for any city in a qualifying county that experiences a loss of property tax base that is in excess of 5 percent.

Employment and Economic Development - $200,000
· $200,000 to the Minnesota Investment Fund for locally administered grants or loans for eligible organizations directly and adversely affected by the disaster.

Education - $173,000
· $127,000 to pay school districts for the number of pupils in average daily membership lost as a result of the disaster.
· $15,000 for the costs of facilities cleanup, repair, and replacement that are not covered by the district's insurance settlement or by FEMA.
· $13,000 for additional school operating costs related to the disaster that are not covered by the district's insurance settlement or by FEMA.
· $18,000 for increased costs associated with transporting students as a result of the disaster.

The proposal also includes $500,000 to the Red River Basin Commission to evaluate long-term solutions for the region in conjunction with state, local and federal officials and entities.

The package also includes $350,000 to reimburse the city of Hugo for costs incurred in recovery and relief efforts following a tornado that struck the city in 2007.

The package utilizes approximately $10 million in state general fund cash and $4.4 million in general obligation bonds. Another $200,000 in trunk highway cash and $2.7 million in trunk highway bonds are also included in the bill.

Governor Pawlenty previously announced that he secured a Presidential major disaster declaration for Minnesota. Counties eligible for federal public assistance to pay for emergency work and the repair or replacement of disaster-damaged facilities are Traverse, Wilkin, Clay, Norman, Polk, Marshall Kittson, Roseau, Otter Tail, Pennington, Red Lake, Grant, Lake, Wadena and Mahnomen.

Individual and homeowner assistance from FEMA is available for those affected by flooding in Clay, Norman, Traverse, and Wilkin counties. In the 10 days since the presidential declaration, FEMA has paid more than $1 million to residents who suffered damages. FEMA disaster assistance covers basic needs only and will not normally compensate eligible applicants for their entire losses. For those insured, the government may help pay for basic needs not covered by insurance companies.