State’s disaster contingency account receives $30 million appropriation

To make the Disaster Assistance Contingency Account solvent and replenish it in the event of disruptive weather, a new law, effective March 18, 2020, appropriates $30 million in fiscal year 2020 from the General Fund to the account.

Since its 2014 creation, the account has been funded each biennium to provide immediate disaster response funding without further legislative action. Prior to its creation, the Legislature would need to convene every time a disaster was declared, often in a special session, to appropriate money toward response efforts.

In addition to providing money for uninsured damage to public infrastructure and response costs, it pays the nonfederal share of presidential declarations (25%) and funds the state share of gubernatorial declarations (75%).

Between 2018 and 2019 the state received three federal disaster declarations and had 16 gubernatorial disaster declarations. There were 1,400 applications for disaster relief assistance from cities, townships, counties and tribal governments, according to information from the Public Safety Department. These disasters have increased demand for funds and exhausted the account.

Sponsored by Rep. Gene Pelowski, Jr. (DFL-Winona) and Senate President Jeremy Miller (R-Winona), the funding will cover the projected $3 million shortfall, provide $20 million for anticipated spring 2020 disaster expenses, and provide $7 million for disaster assistance for the remainder of the 2020-21 biennium.

HF3633/SF3564*/CH68

SF3564* / HF3633 / CH68