Hutchison Fights for 90/10 Reimbursement on Rita Claims
WASHINGTON - Senator Kay Bailey Hutchison (R-TX), a member of the Senate Appropriations Committee, today introduced an amendment to the Emergency Hurricane Supplemental bill which raises the federal reimbursement rate for Hurricane Rita damage claims in Texas to a 90 percent federal, 10 percent state rate. The amendment was accepted and will be in the final bill to be voted on this week. The new reimbursement rate would save Texas counties nearly $200 million.
"Hurricane Rita didn't discriminate along state lines and neither should the federal government. It is only fair that East Texas communities receive the same reimbursement rate as Louisiana counties directly across the river recovering from the same hurricane," Sen. Hutchison said. " Texas was also significantly affected by the thousands of Hurricane Katrina victims that sought refuge in our state. This amendment will ensure Texas is treated equally to other Gulf States following last year's devastating hurricanes."
Currently, the standard FEMA reimbursement rate for damage claims is 75 percent federal with a 25 percent contribution from the state and local government. The president has the authority to modify the percentage to allow for a lower state contribution.
The reimbursement rate in Louisiana was raised to a 90-10 percentage rate following Hurricane Katrina. The new rate applied to Hurricane Rita damage in Louisiana as well, while Texas was only receiving the 75-25 percentage rate for damage caused by the same hurricane.
"After talking to many local officials in 23 East Texas counties, it became clear to me that the 25 percent local share was causing a huge burden on city and county budgets," Sen. Hutchison said.
Sen. Hutchison championed several provisions to the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror and Hurricane Recovery during committee passage. The first provision provides $350 million in Hurricane Katrina education emergency spending to help defray the expenses of Katrina evacuees enrolled in Texas schools in the fall. It is estimated that 30,000 evacuee students will be enrolled in Texas schools as of September 1, 2006 . The underlying bill already included an additional $300 million obtained by Sen. Hutchison for Katrina-related education costs in Texas for this school year -- bringing the two-year total to $650 million.
Another provision Sen. Hutchison introduced provides $10 million in law enforcement funds for fire and emergency services and general law enforcement expenses associated with the influx of Hurricane Katrina evacuees in the state. The funding is in addition to $20 million already released to Texas in March after Sen. Hutchison contacted U.S. Attorney General Alberto Gonzales to secure the funding for Houston from the U.S. Department of Justice.
Sen. Hutchison also cosponsored an amendment which provides $30 million directed to colleges and universities for costs associated with Hurricanes Katrina and Rita. Universities along the Gulf Coast , like Lamar University , will be eligible to apply for a portion of that funding.
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