Disaster Management & Emergency Response

 

States face a variety of fiscal issues related to natural and man-made disaster response efforts.  While each disaster is different, there are also similarities in states’ experiences in working with the federal government, providing funding to local governments, modifying the budget and making emergency appropriations, and responding to bond rating agencies. States experienced a record number of disasters in 2011 including flooding, tornadoes, wildfires, and snowstorms.

Staff Contact: Brian Sigritz

NASBO Publications

  • Because natural disasters and winter storms are unpredictable, they can lead to unexpected costs and impacts on state and local budgets. This issue brief summarizes some of the issues to examine when trying to determine the costs of winter storms on state and local budgets.
  • This report finds that the recent improvement in the national economy has not translated to strong growth in total state spending. This is largely due to the fact that state revenues have not increased as fast as Recovery Act funds have declined, leading to a unique situation in which total state expenditure growth has slowed during the same time that the national economy has been improving.
  • Although state fiscal conditions continue their slow improvement in fiscal 2012, they are likely to remain constrained due to the lack of a strong national economic recovery and the withdrawal of Recovery Act funds. This slow improvement in state finances is highlighted by the 38 states that reported general fund spending growth in 2011 and the 43 states that reported spending growth for 2012. However, 29 states still have lower general fund spending in fiscal 2012 compared to the pre-recession levels of fiscal 2008.