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Institute for Crisis, Disaster, and Risk Management Crisis and Emergency Management Newsletter Website |
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October/November
2007
Volume 13 - Number
1/2 |
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Trends
of Domestic Disaster Costs to the Federal Government During the Past 3 Decades
in 2000-6; 90s, and 80s
By Firas Makarem A Major Disaster could result from a hurricane, earthquake, flood, tornado or major fire which the President determines warrants supplemental federal aid. The event must be clearly more than state or local governments can handle alone. If declared, funding comes from the President's Disaster Relief Fund, which is managed by FEMA, and disaster aid programs of other participating federal agencies. A Presidential Major Disaster Declaration puts into motion long-term federal recovery programs, some of which are matched by state programs, and designed to help disaster victims, businesses and public entities. A Major Disaster Declaration usually follows these steps: • Local Government Responds, supplemented by neighboring communities and volunteer agencies. If overwhelmed, turn to the state for assistance; • The State Responds with state resources, such as the National Guard and state agencies; • Damage Assessment by local, state, federal, and volunteer organizations determines losses and recovery needs; • A Major Disaster Declaration is requested by the governor, based on the damage assessment, and an agreement to commit state funds and resources to the long-term recovery; • FEMA Evaluates the request and recommends action to the White House based on the disaster, the local community and the state's ability to recover; • The President approves the request or FEMA informs the governor it has been denied. This decision process could take a few hours or several weeks depending on the nature of the disaster. During the 1980s, there were 237 disaster declarations across the United States. This trend increased in the 1990s with 460 declarations and since 2000, we have seen a total of 364 disaster declarations thus far. Each of the 3 decades is notable for a unique type of disaster; however since 2000, the United States has seen 2 of the largest disasters domestically, man made and natural, in the events of September 11, 2001 and the Hurricane Katrina and Rita events in August 2005. While it is difficult to quantify the exact costs to the Federal government on these 2 events alone, it is estimated that the total cost since 2000 is approximately $50 billion. While the 1990s had a larger number of declarations, the estimated total cost to the Federal government has been estimated at $27 billion. When examining the trend of disaster costs in the 1990s vs 1980s, it can be argued that even with an increased number of declarations in the 1990s, the level of spending decreased. One particular reason could be the fostering of partnerships with the state and local levels to where mitigation and cost sharing were at their highest levels and the focus was towards mitigating costs of natural hazards instead of terrorism. While it is not quite clear as to the exact cost to Federal government in the 1980s, reports indicate that the Senate Task Force that was examining post-disaster recovery indicated that for fiscal years 1977 through 1993, approximately $119 billion was spent with approximately $87 billion for federal disaster assistance following the event. The trends of cost will be difficult to attain with the changing nature of the disasters, the frequency, and how prepared our communities will be, but it would seem to be conservative to indicate that the cost trend will continue to be in an upward direction. Reference: http://www.fema.gov/txt/hazard/map/declarationsmap2000_07.txt http://www.fema.gov/hazard/dproc.shtm http://www.fema.gov/pdf/library/fema5a.pdf - 2000 Annual Performance Report http://www.gao.gov/new.items/rc00182.pdf - Disaster Relief Fund August 2000 http://www.gao.gov/archive/1998/rc98139t.pdf - Disaster Assistance Report March 26, 1998 |