Oklahoma Owes $36M in Disaster Aid
The state owes an estimated $36 million to more than 600 cities, counties, electrical cooperatives, state agencies, fire districts, schools and Indian tribes for its share of costs associated with 21 natural disasters dating back to 2007.
After a presidential disaster has been declared, the Federal Emergency Management Agency reimburses local governments for 75 percent of the cost of damages to things such as roads, public buildings and public utilities. Although not required to do so, the state has traditionally paid 12.5 percent of those costs through the State Emergency Fund.
Between 1981 and 2008, the state spent $60.4 million from the fund paying off natural disaster costs and the costs of infrastructure damage associated with other extraordinary events, such as National Guard mobilizations by the governor.
But the emergency fund hasn’t had any state appropriations since 2008. Currently, the fund has a balance of $944.
Gov. Mary Fallin has called on lawmakers to replenish the fund so the state can pay off the long-pending bills.
“It is not fair for the state of Oklahoma to ignore its obligations when towns and cities are struggling to find the money to pay for firefighters, police and basic services,” Fallin said. “That’s why I’m calling on our legislators to make replenishing the State Emergency Fund a priority next year.”
Oklahoma Emergency Management Agency reports for disasters through 2010 show the obligations range from $62.50 owed to the Lotawata Fire Department for costs associated with severe thunderstorms in 2010 to nearly $2.4 million owed to Comanche County for expenses from a 2010 winter storm.
Comanche County Commissioner Gail Turner told the Tulsa World the county needs the money.
“It’d make a major difference to our county,” Turner said. “It’s really unfair to the local governments to get paid two or three years after the disaster.”
The delayed payments amount to a no-interest loan to the state with the money coming in after the prices paid by local governments have risen, he said.
He said he has consistently raised the issue with local legislators.
“They are all aware of it. We have worked them. We’ve probably worn them out working them, trying to get reimbursement. They’re all very aware of it.”
The state’s unpaid bills include the costs of seven winter storms and 14 spring and summer storms.
The city of Tulsa is owed $153,750 from a 2010 winter storm. The emergency management reports don’t include a breakdown of state obligations on disasters from this year, including two winter storms that paralyzed Tulsa for days.
Because of more than $17.6 million owed to electrical cooperatives, the winter storms account for a majority of the costs – $28.3 million.
Verdigris Valley Electrical Cooperative is still owed more than $1.8 million from a 2007 winter storm that left 14,000 customers blacked out, many for three weeks.
“It was huge for us,” said Kimberly Loffer, spokeswoman for the cooperative. “We had very few areas that did have power.”
Some 1,700 utility poles were broken over a five-county area in the storm, and the co-op had to call in linemen from three states to get power restored.
The federal government was quick to pay its 75 percent of the costs, which helped ease the financial burden, Loffer said, but the state’s languishing share would allow Verdigris Valley to pay for existing expenses and extend its services without a rate increase or debt.
The largest set of unpaid costs stem from a Jan. 28-29, 2010, winter storm. A total of nearly $14.8 million in costs are still pending on that storm, including the Comanche County funds.
The storm brought snowfalls of up to 9 inches to parts of the state and layered southern Oklahoma in frozen rain and ice.
At the request of then-Gov. Brad Henry, President Barack Obama declared a major disaster with assistance to 25 counties from the storm on March 5.
Turner said he remembers the ice storm well. It left roads littered with broken tree limbs and downed power lines.
The county, which was still recovering from a snow storm a few weeks before, hired a contractor to help clear the damage. The contractor and road expenses made up most of the county’s emergency claim, he said.
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