Will Congress soon follow, as claims rise?
Hurricane-damaged homes remains a common sight along Highway 98 near Mexico Beach, March 31, 2019
The Florida Legislature has approved $220 million in targeted Hurricane Michael recovery money to effected Panhandle communities above the $1.64 billion the state is already expected to spend this year. Meanwhile, there are finally signs of movement in Washington over a now $17 billion disaster relief package for Florida and other states, above the $1.1 billion FEMA has provided in aid to date in the Panhandle.
The legislature ended its 2019 session this past Saturday, approving the $220 million, with most of it ($115 million) going to affordable housing programs. An estimated 20,000 people were left homeless after the Cat 5 storm struck last October. In Bay County, ground-zero for Michael, about 7,800 residents still considered homeless. FEMA has placed about 850 trailers throughout the core six-county swath of the storm, mostly in Bay County. As of last week, 659 families there were still being housed, while nearly 20,000 residents across the region receive rental assistance.
About $35 million of the $220 million will go to repairing roads and another $14 million to school districts that suffered enrollment declines when families moved out of the area. The Bay County student population is down 14% and hasn’t been receiving the same per student funding from the state as a result. The rest of the legislature’s spending package will go to individual infrastructure repair and rebuilding projects from buildings to roads to sewers. (See Bill Watch for further details.)
So far, the state has spent about $1.3 billion of $1.64 billion in emergency funding from state reserves for hurricane relief. It expects the federal government to reimburse most of the money. Congress has been at a stalemate on a $13.5 billion relief package for Florida and other disaster-impacted states that has grown to $17 billion now and may be passed as soon as this week under a reported compromise. President Trump is scheduled to hold a rally in Panama City Beach this Wednesday, just 20 miles up the coast from some of the worst hurricane damage.
A damaged business near Mexico Beach for sale, March 31, 2019
Congress has voted on the package four times and all four times failed to pass it along party lines over a dispute on extra funding for Puerto Rico for Hurricane Maria recovery. The stalemate has raised the ire of Florida officials, including U.S. Senator Marco Rubio, who last week, released this short video of 10 stories told by hurricane survivors as a plea to his colleagues to act.
The mayor of Panama City created his own brief video, showing some of the damage to schools, businesses, and housing, together with the tremendous amount of debris that still sits in piles almost everywhere you go. Mayor Greg Brudnicki and his City Manager Mark McQueen were in Washington, D.C. last week to make direct pleas to Congress for more federal help. FEMA last week awarded $58 million to three electric cooperatives for reimbursement of emergency protective measures right after the storm, plus $22.5 million to Bay County schools for similar measures and debris removal.
State Senator Doug Broxson (R-Pensacola) gave an impassioned speech on the floor of the Florida Senate Friday afternoon, decrying the situation that Florida finds itself in with an uncooperative federal government.
“It’s depressing that 200 days after the storm, that we have a federal government in deadlock that cannot agree to help both the people in California and the people in Florida with devastation that either had ever seen because they’re involved in a battle on issues that are unrelated to the hurting people of our area. There’s no one that can explain that,” Senator Broxson said.
Meanwhile, insurance claims from Michael in Florida rose $180 million from the last bi-monthly report, to just under $6.4 billion. Almost 83% of the 146,191 claims have been closed (84% were paid). Traditionally expensive Commercial Lines claims have a long way to go though, with just under 54% of commercial property claims and about 48% of business interruption claims closed. Just over 67% of commercial residential claims have been closed.
Volunteer efforts are ongoing in the Panhandle, with donations still being accepted as well. You can learn more and help by going to Rebuild 850.
LMA Newsletter of 5-6-19
