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The Disaster Recovery System Is Quicksand of Our Own Making

How is it possible for states and local governments to bear a greater share of disaster costs?

This is a Guest Post by Jerry Quinn, a Disaster Recovery Expert. See below: 

 

As a former state emergency management Director, the current FEMA administrator participated in the Annual Emergency Management Preparedness Grant (EMPG) performance report co-sponsored by the National Emergency Management Association (NEMA (state directors)) and the International Emergency Management Association (IAEM (local government and private-sector directors)). All former recent state directors participated in that publication.

We all wish for fewer and less costly disasters. Over several years of the above report, it is documented that state and local governments manage and fund 98% of major emergencies and undeclared disasters with no federal assistance. It is equally true that upon a Presidential Major Disaster Declaration, that FEMA eventually funds huge response and recovery costs.

No state or local government can undo hundreds of years of land use decisions, inclusive of U.S. geography acquired by purchase or military action. The stage was set long ago for many recent disaster declarations. The federal government cannot take property nor can it keep hurricanes offshore nor wildfires from traversing federal lands to lands in private ownership or owned by other political subdivisions. All levels of government contribute to the circumstances which infrequently are declared a major disaster causing years of response and recovery work and costs. Loma Prieta was declared closed after 24 years. A New York subway station was just reopened after 17 years. Restoration of Katrina damages continues at the 14-year mark. On a major fire in 2003 only 30% of homes were rebuilt at the two-year mark.

I wish recovery was faster as well. Recovery is so complex by our own making. Local ordinances, state laws and federal regulations all significantly extend the recovery timeline and, therefore, increase the expense. The presidential major disaster declaration process has averaged over 61 days so far in 2018; the quickest major declaration occurred 8 days after the incident began; the slowest 173 days after incident start. Upon declaration, the recovery freight train begins its long uphill haul.

One way or the other, taxpayers fund response and recovery. They should be concerned about the costs. Recovery generates economic activity, including a variety of taxes at all government levels, for years after a declaration. I do not know if the economic multiplier effect makes recovery cost neutral.

Congress changed the intent of the Stafford Act from “expedite disaster recovery” to “save the federal government money” years ago. I believe the intended consequence of slowing federal expenditures has become a reality. The unstated consequence is that bureaucratic impediments at all levels of government drive up costs over time and incur the costs necessary to meet current legal, regulatory and codes/standards requirements. We cannot have less expensive or quicker recoveries in the pool of quicksand we have created. I am sure we have all at one point told someone younger “you can’t have it both ways”.

For all the expressed notions that states and locals should do more and share in more of the costs I see no recommendation of where that money should come from or who it is be taken from.

There is no 100% hazard free zone for the US population to move to. Preparedness investments may mitigate damages and contribute to response and recovery — but 72 hours of preparedness investment is not close to enough. Insurance, if affordable, may help, but recent floods and fires have generated a protracted insured recovery timeline as well. Businesses can write off insurance premiums — all hazards insurances should be a tax write off or even better a tax credit. Those clamoring for more mitigation investment do not suggest where the money comes from either. Mitigation projects are very expensive and are processed through the bureaucratic pool of quicksand as well.

Wishing for fewer and lower costs disasters do not make either happen despite well-intentioned and industrious efforts. This will only change with a massive shift in investing [in mitigation] before the inevitable events; otherwise we are treading in our own quicksand.

 

Eric Holdeman is a contributing writer for Emergency Management magazine and is the former director of the King County, Wash., Office of Emergency Management.