North Carolina government calculates damage from Hurricane Helene needs at least $53 billion: NPR

Homes lie in a debris field after Hurricane Helene, Thursday, Oct. 3, 2024, in Pensacola, North Carolina

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RALEIGH, N.C. — Catastrophic flooding and destruction from Hurricane Helene in western North Carolina likely caused at least $53 billion in damage and recovery needs, Gov. Roy Cooper's administration said Wednesday.

The state budget office has determined preliminary figures for direct or indirect damage and possible investments to prevent similar destruction in future storms.

Cooper told reporters the state's previous record for storm damage was $17 billion from Hurricane Florence, which hit eastern North Carolina in 2018.

“It is no exaggeration to describe Helene as the deadliest and most devastating storm ever to hit North Carolina,” Cooper said as he introduced his request to the General Assembly for $3.9 billion to fund repairs and revitalization efforts. He called it a “down payment on the future of Western North Carolina.”

North Carolina state officials have reported 96 deaths from Helene, which caused historic rainfall and flooding in the mountains in late September.

The storm and its aftermath caused 1,400 landslides and damaged over 160 water and sewer systems, at least 6,000 miles (9,650 kilometers) of roads, more than 1,000 bridges and culverts and an estimated 126,000 homes, the budget office said. About 220,000 households are expected to apply for federal aid.

“This staggering damage number reminds us that we are at the forefront of this recovery effort,” the Democratic governor said.

The report containing Cooper's spending request was released the day before the Republican-controlled Legislature was scheduled to meet for a one-day session to advance further legislation to restore Helene.

Lawmakers unanimously approved a $273 million package two weeks ago that also included language to provide flexibility to state agencies, displaced residents and officials running elections in 25 western counties. Thirty-nine of the state's 100 counties are in federally declared disaster areas.

The state government's coffers contain several billion dollars that are available for future renovation spending. There is almost $4.5 billion in the state's savings reserve alone.

Lawmakers had not provided any details as of late Wednesday afternoon about what they would try to pass Thursday. Lawmakers were still reviewing Cooper's request, which they received Tuesday, according to Lauren Horsch, a spokeswoman for Senate Leader Phil Berger. Legislation is unlikely to represent the total package that Cooper and state budget director Kristin Walker have presented. After Thursday, deputies are scheduled to return to Raleigh on Nov. 19.

The damage report assumes direct or indirect damages of $48.8 billion and expected mitigation costs of $4.8 billion. The Budget Office estimates the federal government will raise $13.6 billion, with private and other sources coming up with $6.3 billion.

Most losses are never recovered, Walker said.

The private share of spending will likely be relatively small because few homeowners and farmers in disaster areas have flood or crop insurance. Nearly 93% of homes with flood damage confirmed by the Federal Emergency Management Agency did not have flood insurance, the report said.

Cooper's request includes $475 million for a two-stage recovery program for businesses in the hardest-hit areas, with grants ranging from $1,500 to $50,000 in the first phase and up to $75,000 in the second phase.

Other highlights include $289 million in matching funds to access federal funds for utility repairs and debris removal; $225 million for grants to farmers for uninsured losses; and $100 million for capital needs of public schools and community colleges.

Cooper also wants $325 million to immediately help homeowners and renters rebuild and make minor repairs while a larger program dependent on federal funding is implemented. It took nearly two years for Washington to provide community development block grants for home repairs after Florence and Hurricane Matthew in 2016, the report said.

Wednesday's request also includes $175 million to cover remaining repairs to Matthew's and Florence's homes that will be made under the block grant program. Cooper's administration attributes the deficit to rising construction costs, labor shortages, the COVID-19 pandemic and a congressional appropriation that was about half of what the state requested.

The budget shortfall prompted Berger and another top Senate Republican to issue a news release Wednesday criticizing the $175 million request and its timing, calling it another sign of poor management by the state Recreation and Recreation Department called resilience. Senators said an oversight committee would investigate the matter next month.