~ Flood relief package supplements Governor’s executive funding actions ~

Saint Paul – Governor Tim Pawlenty signed a bill early this morning, appropriating $157.3 million of disaster relief funding for the flood-ravaged counties of southeastern Minnesota. The result comes at the close of a special session, called by the Governor to fund recovery and rebuilding efforts in the region.

“Providing relief to those communities, families and businesses suffering as a result of the flooding in southeast Minnesota is in the best tradition of Minnesota government acting in response to natural disasters,” Governor Pawlenty said. “This package will work in conjunction with efforts already being coordinated by federal and local governments, as well as the private sector to ensure the quickest possible return to normalcy for residents in the impacted communities.”

The bill utilizes approximately $79.2 million in state general fund cash and $56.3 million in general obligation bonds. Another $8.2 million in trunk highway cash and $20 million in trunk highway bonds are also included in the bill.

In addition to the $157.3 million of disaster relief, the bill includes authorization to spend approximately $53.2 million advanced by the federal government for recovery and cleanup costs associated with the I-35W bridge collapse in early August and $2 million for Minneapolis bridge disaster matching funds. An additional $5.3 million is included in the bill to assist in funding other recent disasters, such as the Cook County forest fires, flooding in Browns Valley and Crookston, and drought relief for farmers.

The flood relief package for southeast Minnesota includes $17 million to provide the state and local match for federal FEMA disaster assistance. These state and federal dollars are used to help individual households and to rebuild public infrastructure in the disaster area. An additional $51 million dollars will pay to repair roads and bridges damaged by flood waters, while $35 million will go to local businesses affected by the floods and $10 million to help rebuild the infrastructure in those areas. To assist homeowners as they clean up or rebuild entirely, $18 million will fund flexible housing assistance for flood victims.

Other elements of the relief package include $6.7 million for the Department of Natural Resources to cover the cost of damage to Whitewater State Park and other environmentally sensitive lands. An additional $4 million will assist with flood mitigation and easements, as well as stream bank and land stabilization.

The remaining items targeted to flood-damaged southeast Minnesota include $1million for property tax relief, which allows the abatement of the October 15th property tax payment for properties that were most severely damaged; $1million for petroleum cleanup; $584,000 of appropriations to school districts; and $250,000 for the preservation of historic structures.

This Special Session was convened to quickly address the growing needs of flood damaged communities. Special Sessions to deal with similar disasters in 1997 and 2002 took place three or four months after the flooding. In April-May 1997, the Red River flooded, causing major damage in Minnesota, North Dakota and Manitoba. A one-day Special Session was held on August 19, 1997. From June 9-11, 2002, heavy rains caused flooding in Roseau and the northwestern part of the state. A one-day Special Session was held on September 19, 2002.

According to current estimates by the Federal Emergency Management Agency, severe flooding on August 18-19 resulted in approximately $67 million in damage to private property and public infrastructure in southeastern Minnesota. About 1,500 homes in the area sustained some damage and approximately 300 were destroyed.

Following an expedited request by Governor Pawlenty, the presidential disaster declaration made funds available from a number of federal programs in seven counties – Fillmore, Winona, Houston, Steele, Olmstead, Dodge and Wabasha. FEMA disaster assistance includes aid to individuals and households, aid to public and certain private non-profit entities for emergency services and the repair or replacement of disaster-damaged public facilities, and funding for measures designed to reduce future losses to public and private property.

In three-and-a-half weeks, Governor Pawlenty has directed state assistance to help those impacted by the flood:

• On Friday, Governor Pawlenty directed state agencies to provide $31.8 million of current resources for the rebuilding effort. The money includes assistance for homeowners, businesses, and additional help for local governments to repair their infrastructure. The largest portion of the funds is $16 million from the Minnesota Housing Finance Agency to be used for loans to rehabilitate damaged homes and apartments, new construction, and for mortgage down payment assistance. Most of these funds will continue to be available if the new resources made available in the flood bill turn out to be insufficient.
• Government aid payments to cities and counties in southeastern Minnesota have been accelerated to help communities address the costs associated with rescue, recovery and rebuilding. Local government aid payments are regularly sent to cities and counties twice a year, on July 20 and December 26. Under the Governor’s order, December payments for cities and counties in the presidentially declared disaster area have been expedited. The payments total $25.1 million – $18.2 million to 58 cities and $6.9 million to seven counties.
• Southeastern Minnesota flood victims will receive Disaster Unemployment Assistance (DUA) from the Minnesota Department of Employment & Economic Development. The DUA program provides temporary income assistance to workers and self-employed individuals whose work has been lost or interrupted as a direct result of recent flooding.
• Governor Pawlenty also ordered the state to waive electrical inspection permit fees for residents of southeast Minnesota who are rebuilding their homes following the devastating flash floods earlier this month. Homeowners will not have to pay the $35 to $135 state fees if they are eligible for repairs or reconstruction of their homes under the current FEMA Individual and Household grant program. The fees will be waived for permit applications received by the Department of Labor and Industry within one year of the date of the presidential disaster declaration.
• A new “Minnesota Recovers” Web site is operational and features information for individuals, businesses and others affected by flooding in southeastern Minnesota at www.minnesotarecovers.org
• Governor Pawlenty directed the Department of Revenue to temporarily waive the tax paid for hauling construction debris generated in the presidentially declared disaster area (Minnesota Statute 297H.06; subd. 3). The tax is paid by waste haulers and passed along to residential and business customers. To qualify, debris must have resulted from flood-caused demolition and repair and be hauled to a facility designated by the Pollution Control Agency.

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. Individual assistance from FEMA is capped at $28,200, though other loans and grants may be available from the Small Business Administration and the State of Minnesota.