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Budgeting & Finance Presentation

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Florence Bauchau

on 3 February 2013

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Transcript of Budgeting & Finance Presentation

Introduction Controversy Reform Implementation Legislative Process History Budgeting & Finance of FEMA, the Red Cross & the US Government President Carter created the Federal Emergency Management Agency, or FEMA, in 1979.
The initial purpose of the agency was to handle responsibilities that accompany an emergency such as natural disasters. The Founding of FEMA Group Excercise "A Nation Prepared" Upon its inception, FEMA was was solely responsible for handling natural disasters such as hurricanes, floods, tornadoes, etc.
Since September 11th, the agency has undergone a series of reforms that mirror the present-day status quo and have changed the legislative process of the United States when dealing with catastrophic events. Structural Reforms to FEMA
After September 11th, FEMA’s oversight committee changed from Congress (with a total of nine long-standing oversight subcommittees) to the Department of Homeland Security.
This change in operation affected the ability for the agency to effectively implement needed programs.
After the reorganization, FEMA became a small part of the third largest department in the US government "Domestic Radicals" Prior to September 11th, FEMA was a small, independent agency, and its policies "concerning terrorists were limited to threats from domestic radicals."
Due to the imminent threat and fear for future attacks of the same magnitude, President Bush to changed the department in which the agency operated. New Oversight Budgetary Reforms to FEMA FEMA Implementation during 9/11 Provide assistance through a variety of programs funded through its Disaster Relief Fund
Focused on relief efforts toward governments (DOT), businesses, cleanup efforts and families who lost loved ones. Goals During September 11th Local Government Responds - supplemented by neighboring communities and volunteer agencies. If overwhelmed, turn to the state for assistance
The State Responds - use state resources, such as the National Guard & state agencies
Damage Assessment - by local, state, federal & volunteer organizations to determine losses & recovery needs
Governor Makes Major Disaster Declaration - based on the damage assessment; an agreement to commit state funds/resources to long-term recovery
FEMA Evaluates Request - recommends action to the White House on the local community and the state's ability to recover
The President Approves Request- or FEMA informs the governor of denied; the decision process could take a few hours or several weeks depending on the nature of the disaster. Steps in a Major Disaster Declaration FEMA approved $7.9 million to the state of New York to assist the New York City Board of Elections to cover expenses associated with canceling and rescheduling statewide primary elections on Sept. 11, 2001. Current FEMA Budget "In accordance with the President’s Budget for Fiscal Year 2013, and Secretary Napolitano's expectations within the Department of Homeland Security during the current fiscal environment, FEMA’s FY 2013 budget reflects the agency’s priorities as it manages existing resources, reduces redundancies, enhances efficiencies, and focuses on the programs that help FEMA fulfill its crucial emergency management role for the nation."

FEMA’s proposed FY2013 budget reflects the appropriate balance of enabling FEMA to fulfill its mission while reducing spending in several areas while highlighting program efficiency and innovative thinking. Federal Emergency Management Agency – Summary (PDF)
Salaries and Expenses (PDF)
Disaster Relief Fund (PDF)
Emergency Food and Shelter (PDF)
Flood Hazard Mapping and Risk Analysis (PDF)
National Flood Insurance Fund (PDF)
National Pre-disaster Mitigation Fund (PDF)
Radiological Emergency Preparedness Program (PDF)
State and Local Programs (PDF)
U.S. Fire Administration (PDF) Parts of the FEMA Budget Calculating the Economic Effects of Natural Disasters: Conceptual Definitions History of the Red Cross Founded in May 1881 by Clara Barton, the American Red Cross is an affiliate of the International Federation of Red Cross and Red Crescent Society.
The organization is governed by volunteers & supported by donors. Community services that help the needy
Communications services & comfort for military members & their family members
The collection, processing & distribution of blood
Educational programs on preparedness, health, & safety
International relief & development programs
Domestic disaster relief Red Cross Services Red Cross Controversy During September 11th Accused of delaying aid to families
$200 million in donations were "set aside" for future emergencies; this decision was then reversed upon a public outcry
Media complaints and a congressional outcry contributed to Red Cross head Bernadine Healey’s resignation Hurricane Katrina In August 2005, Hurricane Katrina made landfall in the Gulf Region of the United States.
Over 2000 people died and approximately $81 billion dollars was estimated for damages.
The hurricane’s effects were felt in the political, economical, and environmental sphere, primarily in New Orleans. Lack of Response
Disaster Relief Funds
Comprehension of Degree of Destruction
Lack of Communication
Lack of Preparation
Lack of Government Funding
Use of No-Bid Contracts
The War in Iraq FEMA Implementation During Katrina Issues of Implementation “The events of the last ten days have shown that Mr. Brown has repeatedly exercised poor judgment and has failed in his basic responsibilities,” said Senate Democratic Leader Harry Reid and Sens. Dick Durbin, Debbie Stabenow and Charles Schumer. “His continued presence in this critical position endangers the success of the ongoing recovery efforts. ... It is not enough to remove Mr. Brown from the disaster scene.” Katrina Controversy FEMA Controversy Michael D. Brown, a lawyer, was appointed as FEMA's general counsel in 2001 and became head of the agency in 2003.
Brown served as commissioner of the International Arabian Horse Association before taking the FEMA job.
Among other things, he is accused of lying on his resume about previous work experience. Approximately 100 billion in aid was sought after hurricane Katrina with nearly 60 billion of it directed towards Department of Homeland Security
One caveat of receiving the additional funding was the Department of Homeland Security was to provide weekly updates to the appropriations committee on how funding was being spent Post Katrina Legislation Possibly reinstating FEMA as independent cabinet level agency that no longer reports to DHS
Amend Stafford Act to ensure damage assessments are accurate and funds are allocated appropriately (response to high levels of fraud)
Changes to qualifications and appointment process of FEMA directorNone of these bills passed yet there were changes made to FEMA giving it more autonomy/flexibility Proposed Bills Concerning FEMA Failures Post Katrina Reforms Critics blasted President George W. Bush for delayed federal action to Hurricane Katrina in 2005, as well as President George H.W. Bush’s reaction to Hurricane Andrew in 1992.On October 4, 2006, President George W. Bush signed into law the post-Katrina Emergency Reform Act. The act significantly reorganized FEMA, provided it substantial new authority to remedy gaps that became apparent in the response to Hurricane Katrina in August 2005, the most devastating natural disaster in U.S. history, and included a more robust preparedness mission for FEMA. One can picture a natural disaster as a time line consisting of three distinct periods.

Losses to buildings, highways and other infrastructure (direct losses) occur

Indirect losses such as lost output and reductions in employment, leisure time and taxable receipts occur.

A recovery ensues: Rebuilding and cleanup efforts generate temporary increases in retail sales of such items as construction materials and nonperishable items like batteries, charcoal and canned foodstuffs. Damaged or destroyed goods like clothing, furniture and other household items are replaced, and roads, bridges or other structures are repaired or rebuilt. The Recovery Period: A Fiscal Expansion? Period 1 Period 2 Period 3 To Tie Things Up Superstorm Sandy On October 2012, Superstorm Sandy made landfall on the East cost and affected 24 states.
Hardest hit was the New York City/New Jersey Area.
New York has estimated its storm-related costs at nearly $42 billion, while New Jersey's estimated losses totaled about $37 billion. FEMA During Superstorm Sandy "A Stitch in Time Saves Nine" A short video concerning the controversy between spending in preparation for natural disasters versus spending after the fact. Created a first-of-its-kind “Rapid Repairs” program
Community Relations Agents New Changes Problems Lack of Communication: Despite changed in protocol; citizens complain of lack of communication between FEMA and the public FEMA administrator can now report directly to Congress after informing Secretary of Homeland Security.
Created 10 regional offices to better respond to emergencies
More focus on disaster relief and preparedness None of these bills passed, yet there were changes made to FEMA giving it more autonomy: Superstorm Sandy Legislation Transit and relief aid
This part of the bill passed upon the first vote and was approved by more than a three-to-one margin
The package was split in two to allow the more conservative Republican lawmakers to vote for one and not the other. $17 Billion "Base Bill" $50.7 Billion Package $33 billion for longer-term projects
The vote in the House was 241-180 (only 49 Republicans, mostly from the NE, voted for final passage)
The Senate just approved the bill that the House had passed this on 1/28/2013 in a 62-36 vote
The money includes grant funding for owners of homes and businesses, as well as funding for public improvement projects on the electrical grid, hospitals and transit systems to prevent damage from future storms. Before approving the relief bill, senators voted 62-35 to reject an amendment by Sen. Mike Lee, R-Utah, that would have required Congress to pay for storm relief with other cuts. Republican-backed legislation proposed to cut hundreds of millions of dollars in coastal rebuilding
Measures were passed to prohibit the Agriculture and Interior departments from acquiring federal land using supplemental Sandy funding, which inhibits coastal restoration efforts
There was an attempt to cut $13 million in funding for National Weather Service Bipartisan-Fueled Controversy Surrounding Sandy Many amendments were proposed to tack onto the Sandy relief bill as were budget cuts which caused huge amounts of tension in the House and the Senate. Among others: And one of the most controversial amendments: More than $664 million in federal aid has been approved for New York’s victims of Superstorm Sandy by FEMA. Red Cross Controversy The Red Cross has raised $117 million dollars (since November 9) but is struggling to raise more once things settled back down because people living in the affected areas have seen little impact of the Red Cross in their communities.Business pledges of over $141 million have been announced in support of recovery efforts. 2/3 of business aid has come in the form of direct monetary donations to organizations such as the Red Cross and Feeding America.The argument against giving to the Red Cross is that some perceive the organization as spending a large part of its contributions on overhead. Some believe that Red Cross CEO Gail McGovern is paid millions of dollars every year. FEMA Budget for 2013 Group Excercise, Revisited! The End
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