FEMA Public Assistance Changes Affect Municipalities Nation-wide
Published: February 7th, 2008
By: Jessica Lewis

NORWICH – No one can say for sure how much of an impact recent changes to the Federal Emergency Management Agency’s Public Assistance Program will have on individual municipalities, but most agree the changes will result in at least some decrease in funding.

On Nov. 13, changes to FEMA’s Public Assistance Program, regarding administrative costs, were put into effect. The program, which previously funded 2 to 3 percent of disaster-related project costs as an administrative overhead reimbursement, has been changed and many believe that will result in less federal funding.

According to Alexandra Kirin, a media representative from FEMA, the changes were intended to “ simplify and clarify the method by which FEMA reimburses costs incurred by grantees and subgrantees in administering FEMA's Public Assistance and Hazard Mitigation Grant programs following a declared disaster or emergency, and establishes fixed management cost rates for compensating eligible grantees and sub-grantees.” 

Under the new regulations, New York State would receive 3.5 percent of all project costs to cover their own administrative costs, and distribute the rest to individual municipalities. “This reduces the amount of money for grant management,” said State Emergency Management Office representative Dennis Michalski. “This is a national issue, and all the states are looking at the impact.”

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