Bill Text: NJ AR121 | 2012-2013 | Regular Session | Introduced
Bill Title: Urges Congress to waive cap on community disaster loans for certain counties, municipalities, and school districts affected by Superstorm Sandy, similar to waiver provided to New Orleans after Hurricane Katrina.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2013-02-11 - Combined with AR89 (ACS) [AR121 Detail]
Download: New_Jersey-2012-AR121-Introduced.html
Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Urges Congress to waive cap on community disaster loans for certain counties, municipalities, and school districts affected by Superstorm Sandy, similar to waiver provided to New Orleans after Hurricane Katrina.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging the United States Congress to waive the cap on community disaster loans for certain counties, municipalities, and school districts affected by Superstorm Sandy, similar to the waiver provided to New Orleans after Hurricane Katrina.
Whereas, Superstorm Sandy hit New Jersey on October 29, 2012, destroying entire communities, causing extensive flooding, leaving millions without power for prolonged periods of time, and forcing mass evacuations; and
Whereas, The superstorm caused $37 billion in damage in this State, more than the State's annual budget, and left more than 30,000 homes and businesses damaged or destroyed; and
Whereas, As a result of the extensive damage to these homes and businesses, property values have sharply declined, leading to lower tax assessments and reduced property tax revenue; and
Whereas, This revenue loss jeopardizes the ability of counties, municipalities, and school districts to pay for essential services including public safety, education, transportation, and environmental protection; and
Whereas, In addition to the ongoing operating costs, all levels of local governments affected by Superstorm Sandy now face cleanup and rebuilding costs, including unbudgeted costs for storm preparation, cleanup, flood mitigation, evacuee management, and infrastructure reconstruction; and
Whereas, As a result, many local governments, at all levels, face financial difficulty as they must continue to pay for essential services, in addition to the costs for cleanup and rebuilding, while losing property tax revenue; and
Whereas, The federal government, through the Federal Emergency Management Agency (FEMA), provides community disaster loans for essential government services to local governments, including counties, municipalities and school districts that have suffered a loss of tax or other revenue as a result of a major disaster, with a loan limit of 25 percent of the local government's operating budget, not to exceed five million dollars; and
Whereas, FEMA provided the city of New Orleans with community disaster loans after Hurricane Katrina and in 2005 Congress and President Bush amended the community disaster loan law to waive the loan cap of five million dollars for local governments affected by Hurricane Katrina, including New Orleans; and
Whereas, It is fitting and proper for the United States Congress to waive the community disaster loan cap of 25 percent of the local government's operating budget and the loan cap of five million dollars for counties, municipalities and school districts in this State that lost property tax revenue due to damage from Superstorm Sandy; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. The General Assembly of this State respectfully urges the United States Congress to waive the community disaster loan cap of 25 percent of the local government's operating budget and the loan cap of five million dollars for counties, municipalities, and school districts that lost property tax revenue due to damage from Superstorm Sandy.
2. Duly authenticated copies of this assembly resolution shall be transmitted to the Vice President of the United States, the Majority Leader of the United States Senate, the Speaker and Minority Leader of the House of Representatives, and every member of the United States Congress elected from this State.
STATEMENT
This Assembly resolution urges the United States Congress to waive the cap of 25 percent of the local government's operating budget and the cap of five million dollars on community disaster loans provided by the Federal Emergency Management Agency (FEMA) to counties, municipalities, and school districts that lost property tax revenue due to damage from Superstorm Sandy.
On October 29, 2012 Superstorm Sandy hit this State causing extensive flooding, forcing mass evacuations, and destroying entire communities. The superstorm caused an estimated $37 billion in damage in this State and left more than 30,000 homes and businesses destroyed or damaged.
The damage from the superstorm caused property values to decline, leading to lower tax assessments and reduced property tax revenue, thereby jeopardizing the ability of local governments to pay for essential services, including police and education. In addition to the ongoing operating costs, local governments affected by the superstorm also face cleanup and rebuilding costs.
The federal government, through FEMA, provides community disaster loans for essential government services to local governments, including counties, municipalities, and school districts that lost tax or other revenue due to a disaster. There is a loan limit of 25 percent of the local government's operating budget, not to exceed five million dollars
FEMA provided community disaster loans to New Orleans after Hurricane Katrina, and in 2005 Congress and President Bush amended the loan law to waive the five million dollar loan cap for municipalities that lost revenue due to Hurricane Katrina. Due to the severity of the damage sustained by New Jersey residents, businesses, and local governments because of Superstorm Sandy, New Jersey deserves no less.
