2018 Fiscal Year State Budget, NC Budget and Tax Center

State lawmakers take positive step in Hurricane Matthew recovery

Today, the NC General Assembly passed The Disaster Recovery Act of 2017 (SB 338). The bill allocates $100 million to help Eastern North Carolina recover and rebuild from the devastating effects of Hurricane Matthew. Causing massive flooding and damage in 50 counties in the Eastern part of the state, the storm displaced thousands of families and impacted hundreds of thousands of homes and business. Ultimately, there was an estimated $2.8 billion in damages and another $2 billion cost in lost economic activity.

This is the second round of disaster recovery funding the state has pursued. In a December special session, the General Assembly passed the Disaster Recovery Act of 2016, allocating $200.9 million. Since then, Governor Cooper, as well as North Carolina’s Congressional delegation, worked hard to secure a federal commitment to fulfill the state’s unmet need. In May, the Trump Administration announced that they would only allocate $6.1 million of the $930 million North Carolina had requested.

The Disaster Recovery Act of 2017 is a key step in attempting to close the gap left wide open by the federal government. In this round of funding, $20 million will be allocated to addressing housing needs, including the repair of homes for low-income homeowners and renters. Another $20 million will go to the Department of Agriculture for dam, soil, and water systems repairs, and $30 million will go to infrastructure projects managed by local governments and non-profits. $2.7 million will help the Community College System deal with enrollment declines resulting from the storm, and, finally, $22.3 million will be allocated as a match for federal disaster grants.

Although this round of funding is not enough to address the unmet need or the total costs of damages incurred in Eastern North Carolina, it is an important step. If we are to help Eastern NC not only recover, but to become resilient, state lawmakers will have to continue to make these types of investments in the years to come.

Brian Kennedy II is a Public Policy Fellow with the Budget & Tax Center, a project of the North Carolina Justice Center.

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