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Hurricane Matthew Fiscal Update

Andrew T. Heath
State Budget Director

November 1, 2016

Hurricane Matthew Recovery

42 County Disaster, Statewide Impact


Major Economic Impact
Large segment of Eastern North Carolina economic base impacted
Businesses, especially farms, unable to operate
Historical Example: Hurricane Floyd caused nearly $1 billion in damage to agriculture alone.

Local Governments Limited Resources Are Strained


Response and recovery related expenses overwhelming local governments
Damaged Roads and Infrastructure
Current Example: The towns of Princeville and Lumberton have seen widespread damage.

Long Term, Statewide Impact Underscores Need for Federal Assistance


Primary source of long term recovery funds will be federal appropriations. Any unmet
needs will be funded through state appropriations.

Hurricane Matthew Recovery

Planning Allowed for Immediate Response


Short Term Disaster Funding: Two Primary Funds
State Emergency Response and Disaster Relief Fund; and
Contingency and Emergency Fund
Short Term Spending Driver: Emergency Response
Temporary Housing, Emergency Personnel
Flood waters receded October 24, 2016

Short term costs tapering off as we transition from Response to Recovery


Temporary Housing needs down from 3,744 in 109 shelters to 248 in 4.
Extra duty State Highway Patrol troopers and National Guard deactivated
Swift water and air rescues completed

Hurricane Matthew Recovery


Short Term Funding Overview
Fund Balance as of October 31
State Emergency Response and Disaster Relief

$12.0 M

Contingency and Emergency

$10.1 M

Total

$22.1 M

Hurricane Matthew Costs Incurred as of October 31


Total State and Federal Dollars

$60.9 M

Estimated State Share

$11.3 M

Note: Estimated State Share ranges from 0% to 25%,

Hurricane Matthew Recovery


Preliminary Cash Flow Analysis
$25
$21.88

in Millions

$20

$18.48
$16.08

$15
Congress Reconvenes

General Assembly Convenes

(November 14)

(January 11, 25)

$10

$12.48
$9.40

$5.80

$5
$0.22

$3.40

$0
Nov 1 - 30

Dec 1 - 31
State Share (Projected)

Jan 1 - 31

Feb 1 - 28

Fund Balance (Projected)

In addition to Hurricane Matthew expenditures, Emergency Management projects $3 million in payments for obligations from prior events
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Hurricane Matthew Recovery

North Carolina is Well Positioned for Long Term Recovery


Long Term Disaster Funding: Savings Reserve
Since January 2013, Governor McCrory and the General Assembly have more than
tripled the Savings Reserve balance.
The current balance of $1.6 billion is the largest in state history.
General Assembly legislation is required to appropriate funds out of the Savings
Reserve for disaster recovery.
Long Term Spending Drivers:

Housing and Rental Assistance


Small Business Assistance
Agriculture and Fishing Assistance
Public Health and Environmental Assistance

Local Government Assistance

State Disaster Recovery Appropriations

Hurricane Recovery Act of 2005 v. Hurricane Floyd Recovery Act


60%

40%

20%

0%
FEMA
Matching
Funds

Housing and Small Business Agriculture and Public Health


Local
Rental
Assistance
Fishing
and
Government
Assistance
Assistance Environmental Assistance
Assistance

Hurricane Recovery Act of 2005


7

Hurricane Floyd Recovery Act


DRAFT NOT REVIEWED OR APPROVED

Hurricane Matthew Recovery


Projected Recovery Timeline

Damage
Assessments
November

Federal
Appropriation

Unmet Needs
Assessment

State
Appropriation

|----------------------- December ----------------------------|

DRAFT NOT REVIEWED OR APPROVED

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