By james art By Gary D. Robertson, Associated Press
Wednesday, October 23, 2024 | 4:27 in the afternoon
RALEIGH, NC — Catastrophic flooding and destruction caused by Hurricane Helene in western North Carolina likely caused at least a record $53 billion in damage and recovery needs, Gov. Roy Cooper’s administration said Wednesday.
The state budget office generated the preliminary figure for direct or indirect damage and potential investments to prevent similar destruction in future storms.
Cooper told reporters that the state’s previous record for storm damage was $17 billion from Hurricane Florence, which hit eastern North Carolina in 2018.
“It is no exaggeration to describe Helene as the deadliest and most destructive storm to ever hit North Carolina,” Cooper said as he unveiled his request to the General Assembly for $3.9 billion to help pay for repairs and revitalization. He called it “a down payment for the future of Western North Carolina.
North Carolina state officials reported 96 deaths from Helene, which brought historic levels of rain and flooding to the mountains in late September.
The storm and its aftermath caused 1,400 landslides and damaged more than 160 water and sewer systems, at least 6,000 miles (9,650 kilometers) of roads, more than 1,000 bridges and culverts and an estimated 126,000 homes, the budget office said. About 220,000 households are expected to apply for federal aid.
“This staggering damage figure reminds us that we are very much at the forefront of this recovery effort,” the Democratic governor said.
Cooper’s spending request report was released a day before the Republican-controlled Legislature plans to meet for a one-day session to advance additional Helene recovery legislation.
Lawmakers unanimously approved a $273 million package two weeks ago that also included language to provide flexibility to state agencies, displaced residents and election officials in 25 western counties. Thirty-nine of the state’s 100 counties are in a federally declared disaster area.
State coffers include several billion dollars that can be used for future recovery costs. Almost $4.5 billion is in the state savings reserve alone.
Legislative leaders had not released details as of late Wednesday afternoon about what they will try to pass on Thursday. Lawmakers are still reviewing Cooper’s request, which they received Tuesday, according to Lauren Horsch, a spokeswoman for Senate Leader Phil Berger. Any legislation is unlikely to be the full package presented by Cooper and State Budget Director Christine Walker. After Thursday, lawmakers are expected to return to Raleigh on Nov. 19.
The damage report projected $48.8 billion in direct or indirect damages, along with $4.8 billion in estimated mitigation costs. The budget office estimates the federal government will cover $13.6 billion, with private and other sources covering $6.3 billion.
Most of the losses will never be recovered, Walker said.
The share of costs from private sources is likely to be relatively low because so few homeowners and farmers in the disaster areas had flood or crop insurance. Nearly 93 percent of flood-damaged homes inspected by the Federal Emergency Management Agency did not have flood insurance, the report said.
Cooper’s request includes $475 million for a two-phase program to restore businesses in the hardest-hit areas, with grants of $1,500 to $50,000 in the first phase and up to $75,000 in the second phase.
Other highlights include $289 million in matching funds to access federal money for utility repairs and debris removal; $225 million for subsidies to farmers for uninsured losses; and $100 million for capital needs of public schools and community colleges.
Cooper is also asking for $325 million to help homeowners and renters with immediate rebuilding and minor repairs while a larger program dependent on federal funds is implemented. It took nearly two years for Washington to send Community Development block funding to repair homes after Florence and Hurricane Matthew in 2016, the report said.
Wednesday’s request also seeks $175 million to cover remaining renovations to Matthew and Florence’s home made through the grant program. The Cooper administration blamed the shortfall on rising construction costs, labor shortages, the COVID-19 pandemic and congressional appropriations that are roughly half of what the state requested.
The fiscal hole prompted Berger and another top Senate Republican to issue a news release Wednesday criticizing the $175 million request and its timing, calling it yet another sign of mismanagement by the state Office of Recovery and Resilience. Senators said an oversight committee would investigate the matter next month.