Recovery Objectives and Priorities

James Lee Witt Associates

June 5th, 2008

2

Presidential Declarations

3

Top Ten FEMA Disasters

EVENT YEAR FEMA FUNDING

Hurricane Katrina and Rita (LA Only) 2005 $34 billion*

Attack on America (NY,NJ,VA) 2001 $9 billion

Northridge Earthquake (CA) 1994 $7 billion

Hurricane Ivan (AL,FL,GA,LA,MS,NJ,NY,NC,PA,TN,WV) 2004 $2.4 billion

Hurricane Georges (AL,FL,LA,MS,PR,VI) 1998 $2.25 billion

Hurricane Wilma (FL) 2005 $2.1 billion

Hurricane Charley (FL,SC) 2004 $1.89 billion

Hurricane Andrew (FL,LA) 1992 $1.8 billion

Hurricane Frances (FL,GA,NY,NC,OH,PA,SC) 2004 $1.77 billion

Total $28.2 billion*and climbing

4

From 1991 to Katrina:

Individual Assistance

$ 306,313,000

Public Assistance$ 352,410,500

Hazard Mitigation

$ 78,401,500 (HMGP)

$ 22,000,000 (FMA)

SBA Loans

$ 247,401,500

Total $1,006,626,500

Total Grants Processed

5

Katrina – Rita Recovery Metrics• 1,400 + Unique Applicants

– 20 Applicants with over $100 million in Damages

– 7 Applicants with over $200 million in Damages

– 3 Applicants with over $300 million in Damages

– 1 Applicants with over $500 million in Damages

• 21,000 + Total Projects • 4,700 Large C-G Projects• 2 ½ Years post-event:

– $3 billion Reimbursed

– 34% of Large C-G Projects started ($900 million spent)

– 10-20% of Large C-G Projects Construction Started

• Entire School Districts Require Rebuilding• Over 400 Building Designated as Replacement• 960 Projects Under Appeal

Previous 10 years

Average Disaster Size $40 Million wo/Katrina

$60 Million w/Katrina

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Recovery Comparisons

Louisiana Mississippi

Totals are in $ Billions

Information provided by FEMA/GOSHEP – April 2008

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Major Impediments to Recovery

• Magnitude of impacts

• Applicant resources

• Cash flow

• Funding gaps

• Problematic PWs

• Programmatic complexities

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• Insurance reductions− NFIP

− General property insurance

• FEMA ineligible work

(deferred maintenance)

• Alternate project penalties (25%)

• Opportunity upgrades (enhancements)

Funding Gaps

9

Katrina HospitalEstimated Cost to Repair: $10.2 Million

NFIP Reduction – Structure - 0.5 *

NFIP Reduction – Contents - 0.5 *

Anticipated Property Insurance Reduction - 0.5 *

FEMA Ineligible Work (Enhancements) - 0.2

FEMA Ineligible Work (Deferred Maintenance) - 1.0 *---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Available FEMA Funds $7.50 Million

Funding Gap $2.70 Million

* LRA/OCD to Provide for Funding Gap (public schools)

Common Dilemma

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Impact on Business

• “A Company that experiences a computer outage lasting more than 10 days will never fully recover financially. 50 percent will be out of business within five years.”

• “An estimated 25 percent of businesses do not reopen following a major disaster.“

• “70 percent of small firms that experience a major data loss go out of business within a year.“

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Impact on Business

• Of companies experiencing catastrophic data loss:

– 43% never reopened

– 51% of companies closed within 2 years

– 80% of companies that do not recover from a disaster within one month are likely to go out of business

– Of those businesses that experience a disaster and have no emergency plan, 43 percent never reopen; only 29 percent are still operating two years later

– 75% of companies without business continuity plans fail within 3 years of a disaster

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Private Sector Participation

• Impacted Organization

• Regulated/Responsible Party

• Response Resource

• Emergency ManagementPartner

• Component of Economy

• Business Continuity/ Disaster Recovery Assistance

• Emergency Planning / Best Practices / Information Sharing

• Operational Requirements / Donations Coordination

• Pre-event Collaboration / Mutual Aid/Assistance Agreements

• Situational Awareness / Access / Assistance in Restoration

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