~ Cities and counties within disaster declaration will receive December payments in September ~

Saint Paul – Governor Tim Pawlenty announced today that he is accelerating local government aid payments to cities and counties in southeastern Minnesota impacted by flooding in order to aid those communities as they tackle 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 will be made next week.

The expedited payments total $25.1 million – $18.2 million to 58 cities and $6.9 million to seven counties.

“Minnesota’s recovery and rebuilding effort is going to be as aggressive as possible and as sustained as it needs to be to make sure these communities are rebuilt,” Governor Pawlenty said. “Accelerating this money will help stressed cities and counties manage their finances.”

Under Minnesota law (Minnesota Statutes 477A.015), if the Commissioner of Public Safety determines that a local government has suffered financial hardship due to a natural disaster, he may notify the Commissioner of Revenue who may then accelerate payments. Governor Pawlenty directed Public Safety Commissioner Michael Campion to examine the situation in southeastern Minnesota, and today DPS Commissioner Campion notified Revenue Commissioner Ward Einess that a hardship exists in the affected areas.

According to 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 funds 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.

The Individuals and Households Program (IHP) is a combined FEMA and State program. This program provides money and services to people in the declared area whose property has been damaged or destroyed and whose losses are not covered by insurance. In every case, the disaster victim must register for assistance and establish eligibility. Homeowner assistance from FEMA is capped at $28,200, though other loans and grants may be available.

On Tuesday, Governor Pawlenty announced that 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 announced that he has 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 DLI within one year of the date of the presidential disaster declaration.

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2007 LGA Expedited payments – Cities