FEMA Proposes New Financial Incentives for Disaster Preparation

In order to reduce federal dollars spent on emergency aid, the Federal Emergency Management Agency is floating a new proposal that would give states a financial incentive to better prepare for storms, floods, hurricanes and other disasters. However, many state and local officials are pushing back, expressing concern that the proposed changes would just shift the financial and administrative burden to local governments already overloaded during disaster situations.

The Proposal


The proposed changes would reward states that take actions for disaster mitigation. Those that do not take action would have to pay a greater percentage before the federal government pitches in. Those states would be responsible for an initial share of disaster costs through a deductible that they could lower by taking steps to become better prepared. For example, states could adopt tougher building codes, establish their own emergency management funds, invest money in elevating homes and moving communities out of riskier regions, and/or invest in flood protection such as Big Bags USA®! FEMA believes this would be a better option than to simply increase the threshold to receive disaster aid.

Disaster Declarations


The number of presidential disaster declarations has increase from an average of 13 per year in the 1950s, to an average of 137 per year in the 2000s. Under the current system, the president makes a major disaster declaration to assist state and local governments when the scale of the disaster exceeds their capabilities. While recognizing the need for change, many have expressed concerns that having a deductible would put an extra burden on local governments in emergency situations.

Differing Opinions


South Carolina Emergency Management Division chief of recovery and mitigation Elizabeth Ryan said, "We’re here to advocate for the applicant, but having to provide justification proving how much or how little was planned would add a lot more work, and we just don’t have the manpower to tackle this thing when we’re still engaged in response and recovery." Other organizations, however, think that putting more emphasis on local governments is a necessary step.

The Association of State Floodplain Managers stated, "Too many states have come to believe natural disasters are the problem of the federal government, when actually, public safety is the primary responsibility of state and local governments that have authority to guide development to be at more or less at risk to natural hazards." For them, the proposal seems like a good first step.

Disaster Aid 


The transfer of aid from federal to local governments costs money, sometimes even more than the amount of money that is being sent. The proposed deductible would reduce federal aid by a small percentage, while eliminating a large number of the emergency declarations and saving on those administrative costs. On the other hand, there is a chance that even a minor decrease in aid would be felt most by the smaller communities. Victims of disasters such as Hurricane Sandy in New York and New Jersey would still get a large amount of money, but it's possible that those victims in some rural communities with less resources would feel the loss of that small amount of federal aid more. That's the main concern state and local officials have with this new proposal. They're already struggling to stretch already scarce resources during storms, floods and other disasters. For these communities, the changes may affect their ability to recover because they just don't have the money.

The White House said earlier this month that FEMA will evaluate the feedback received and put together an updated plan for state deductibles. While we don't have all the answers yet, the agency is counting on communities to figure out the best plan of action. Stay tuned for updates on the new system for dealing with major disasters in the United States.

Big Bags USA®


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Disaster Relief & Innovative
Protection Systems, LLC
(573) 480-6699

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