CHAPTER 5. SUPPLEMENTAL HURRICANE RELIEF FUNDS

The 2005 Gulf Coast hurricanes caused unprecedented destruction and loss of life in the Gulf Coast region of the United States. In fact, Hurricane Katrina was the single most catastrophic natural disaster in U.S. history. The storm devastated a 90,000 square-mile area, which is roughly the size of Great Britain. It carved a wide swath of catastrophic damage and inflicted large loss of life in the Florida panhandle, Mississippi, Alabama, Louisiana, and Texas. The storm also resulted in the largest displacement of Americans in our nation’s history.^[27]

SSBG Emergency Hurricane Relief Funding

A total of $550 million was awarded to the fifty States and the District of Columbia through a supplemental appropriation to the SSBG.^[28] This one-time supplemental allotment may be used to provide services in any of the 29 SSBG service categories. In addition, the funds also may be used for health services (including mental health services) and for costs associated with the repair, renovation, and construction of health and mental health facilities used to provide services to victims of the hurricanes.^[29] There are two qualifying points when using SSBG Supplemental funding for repair, renovation, or construction:

1. The State must apply its administrative standards when issuing subawards to guarantee the protection and disposition of real estate rebuilt, constructed, or purchased with grant funds; and
2. The State is required to file a Notice of Federal Interest to officially recognize the Federal government’s continuing financial interest in the property.^[30]

The funds were disbursed to all 50 States and the District of Columbia during February 2006. The allocation amount of these funds was based on the percentage of Federal Emergency Management Agency (FEMA) enrollees from each of the hurricanes in a State, multiplied by the percentage of individuals in poverty in the State. Enrollees from Hurricane Katrina were double-weighted.

Five States—Alabama, Florida, Louisiana, Mississippi, and Texas—were greatly impacted by the hurricanes and therefore received the largest SSBG supplemental allocations. These States received 94 percent of the SSBG Emergency Supplemental Funds. Figure 5–1 shows the percentage of supplemental allocations by State for the five most impacted States. Appendix G, table G–1, provides allocation data for all States.

While States initially had until September 30, 2007 to expend these supplemental funds, legislation in 2007 extended the deadline to September 30, 2009.^[31] Table 5–1 summarizes the reporting requirements for SSBG supplemental funds.

Expenditures

This section focuses on the expenditures of SSBG Supplemental Emergency Funds in Federal fiscal year (FFY) 2006 for all States for which data are available. The expenditures of the five States most-impacted by the hurricanes (Alabama, Florida, Louisiana, Mississippi, and Texas) are discussed in detail.

Of the 29 SSBG service categories, the majority of services for which the States planned to use these funds included: case management; health-related services; housing services; transportation; child day care; and other services. Five States also indicated that they would use some of the supplemental funds for the construction of, or repairs to, health and mental health care facilities.^[32]

Overall expenditures

As of September 30, 2006, 24 States had spent more than $193 million of the SSBG supplemental funds, which accounts for 35.2 percent of the total supplemental allocation of $550 million. Table 5–2 shows the supplemental allocations, FFY 2006 supplemental expenditures, and percentage of allocation expended as of the end of FFY 2006 for these 24 States.

Nineteen States did not use supplemental funds during FFY 2006.^[33] These States are:

Expenditures of the Five Most-Impacted States

Five States—Alabama, Florida, Louisiana, Mississippi, and Texas—were the most heavily impacted by the Gulf Coast hurricanes. These States have spent a total of $183 million of the SSBG supplemental funds, which accounts for 94 percent of funds spent in 2006. Figure 5–2 highlights supplemental expenditures for these five States.

Of the seven additional States that received more than $1 million in SSBG supplemental funds, four reported expenditures in FFY 2006.^[34] These States are Georgia ($5 million), Tennessee ($3 million), North Carolina ($298,000), and Illinois ($128,000).

Expenditures by Service

This section describes the expenditures of SSBG supplemental funds in FFY 2006 by service for the 24 States that had spent funds as of September 30, 2006. The majority of supplemental funds were spent on education and training services ($57 million in three States), health-related services ($45 million in five States), other services ($31 million in 13 States), and child care ($22 million in seven States). States spent supplemental funds on 24 out of the 29 possible SSBG service categories and on administrative costs. No supplemental funds were used for family planning services, pregnancy and parenting, recreation services, residential treatment, or special services for youth at risk. Table 5–3 shows supplemental expenditures by service. Appendix G, table 2, details the services that were provided with supplemental funds for each State.

The summaries for the service categories with the highest expenditures are heavily influenced by the expenditures of the five most-impacted States. For example:

• Louisiana spent $56,906,883 for education and training services, which accounts for 99.9 percent of the expenditures for this service.
• Mississippi spent $41,611,340 for health-related services (93 percent of all expenditures for this service) and $21,317,459 for child care (99 percent of all expenditures for this service).
• Combined, the States of Alabama, Mississippi, Florida, and Georgia spent $25,335,096 for other services, which is 83 percent of all expenditures for this service category.

Thirteen States reported using supplemental funds for the service category of other services. States reported that funds were used under this category for services such as food, shelter, and clothing. Two States—Alabama and Mississippi—reported using the SSBG category of other services for construction and repairs.

• Alabama spent almost $4 million in supplemental funds on construction, which is 70 percent of the State’s total FFY 2006 supplemental expenditures; and
• Mississippi spent almost $21 million in supplemental funds on construction, which is 18 percent of the State’s total supplemental expenditures for FFY 2006.

Table 5–4 shows how each State reported using SSBG supplemental funds for other services.

Service Recipients

States reported that an estimated 18,067 individuals (18% children, 82% adults) received services funded by SSBG supplemental funds in FFY 2006. Five States—Georgia, Mississippi, North Dakota, Oklahoma, and Texas—did not provide recipient data for FFY 2006 supplemental expenditures. Four States—Illinois, Louisiana, Maryland, and South Carolina—provided incomplete recipient data. Because three of the five most impacted States provided no data or incomplete data, the number of individuals who received services is an underestimate of the people served. Table 5–5 shows the reported number of children and adults served by SSBG supplemental funds in FFY 2006, based on available data.

States have until September 30, 2009, to expend the supplemental emergency funds. In 2006, States spent 35.2 percent of the total supplemental allocation. The 2007 SSBG Annual Report will examine how the States used the supplemental emergency funds in FFY 2007 and will provide a combined picture of the use of these funds over the 2-year period.

Continue to Chapter 6