Paying for disaster relief

by Norm Leahy

Rep. Eric Cantor is taking a bit of heat for saying that any federal monies spent on disaster relief in the wake of Hurricane Irene should be offset with spending cuts elsewhere in the budget.

But consider the quotes in Anita’s piece, both from Rep. Cantor and from the group criticizing him, Virginia Organizing. First up, the hard-nosed Mr. Cantor:

“The federal government does have a role in situations like this. When there’s a disaster there’s an appropriate federal role and we will find the monies,” Cantor said. “But we’ve had discussions about these things before and those monies will be offset with appropriate savings or cost-cutting elsewhere in order to meet the priority of the federal government’s role in a situation like this.”

Which earned this retort from Virginia Organizing:

“We have truly reached a new low in American politics if Rep. Cantor is willing to use disaster relief as a political bargaining chip,’’ said Jay Johnson, a board member of Virginia Organizing. “Disaster relief is a necessary function of government and not something to be bartered with. …We are the richest nation in the world and should be able to respond to disasters with more dignity than someone bartering for a couch on Craigslist.”

Each side plays to type, but at bottom, both assume that the federal government has a role in disaster relief.

But does it?

For the truly hard-nosed, the answer is “no.” The federal government is no more responsible for paying for clean-up than it is for offering grants to cowboy poets. But so feeble has our notion of what is and is not the federal government’s proper sphere, that we assume — left, right and center — that our impoverished Uncle on the Potomac will arrive on the scene with cash, supplies and perhaps even a few second hand, formaldehyde-tainted trailers.

Once upon a time in America, the idea of the federal government providing any disaster assistance at all was highly suspect. Jack Balkin, writing after the Katrina disaster in 2005, unearthed a gem from President Grover Cleveland, who vetoed a bill allowing the Department of Agriculture to distribute free seeds to drought-stricken areas of Texas. In his veto message, Cleveland wrote:

I can find no warrant for such an appropriation in the Constitution, and I do not believe that the power and duty of the General Government ought to be extended to the relief of individual suffering which is in no manner properly related to the public service [as with veterans, for example] or benefit. A prevalent tendency to disregard the limited mission of [national] power and duty should, I think, be steadfastly resisted, to the end that the lesson should be constantly enforced that though the people support the Government the Government should not support the people.

Cleveland’s reading of the Constitution is no longer in fashion (if it ever really was). As the Cantor quote above shows, even today’s most rock-ribbed conservatives are comfortable with an expansive reading of federal power. So…how can we possibly bridge the divide between Cantor’s desire to offset federal disaster relief spending with Virginia Organizing’s belief that any offsets are evil?

Aside from ditching the grants to cowboy poets, which wouldn’t do much, Sen. Tom Coburn’s ongoing series of pork reports offer millions of dollars of savings that could be funneled to disaster relief…if that’s where the worthies decide the money is better spent (rather than, say, on the feds’ buying additional limousines).

Coburn has found and continues to find so much frivolous federal spending that reaching Mr. Cantor’s offset goal is neither as difficult, nefarious or Craiglist-like as Virginia Organizing believes it to be.

Unless they really like the idea of having more federal limousines scurrying around the countryside…


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9 responses to “Paying for disaster relief”

  1. Norm, on this topic, you might refer to a recent Heritage Foundation report. A pertinent quote:

    “In the course of 16 years, the yearly average of Federal Emergency Management Agency (FEMA) declarations tripled from 43 under President George H. W. Bush to 89 under President Bill Clinton to 130 under President George W. Bush. In his two and a half years in office, President Obama has issued 360 declarations without the occurrence of one hurricane or large-scale earthquake. In the first six months of 2011, President Obama issued 144 declarations, which puts him on pace for 288 declarations for the year—by far the most in FEMA history. The current single-year record is President Clinton’s 157 declarations in 1996.

    “President Obama already owns the single-year record for major disaster declarations with 81 in 2010, even though not a single hurricane or earthquake above 7.0 on the Richter scale has struck the United States during his presidency.

    “The increase in disaster declarations is largely a result of the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988 (Stafford Act), the controlling federal statute for disasters. Under this act, the federal government pays 75 percent to 100 percent of disaster response bills as long as FEMA has issued a disaster declaration.”

  2. Andrea Epps Avatar
    Andrea Epps

    While I agree that there is a lot of money being spent every day on line items that have nothing to do with (or should not have to do with) the government, Cantor’s comments read as callus, arrogant and uncaring. The people affected by this storm do not need their government officials acting this way, at this time. He’s trying to use this to his benefit. Big surprise. I understand the need to “offset”, but that word has no place in this situation. If we can send BILLIONS to other countries when they have natural disasters, certainly, we can help our own through a time of crisis. If not, we have no real need for any government at all. Or, is he also suggesting we “offset” every dime ever sent to aid others?

  3. Andrea Epps Avatar
    Andrea Epps

    Take II:
    (From RTD afternoon update)

    Gov. Bob McDonnell said this morning on WTOP radio that it’s up to Congress to sort out any potential funding issues regarding the Federal Emergency Management Agency.

    “FEMA’s got an obligation under their own regulations and the federal statutes, when certain thresholds are met they’ve got to provide the money and we may or may not apply for a federal declaration,” McDonnell said.

    “We’re working with FEMA on damage assessments right now, but the bottom line is once we apply and if we meet the requirements, we expect the federal government to pay, because this is an absolute top priority of the government is public safety.”
    EEH???

  4. the problem with the Feds getting involved in disaster “insurance” is that ..unlike the private sector which has to balance payouts with premiums.. the Feds can’t say no….and they won’t increase the premiums either.

    the Federal subsidized flood insurance program is the poster child for what happens when the Feds get involved.

    We have a TON of home located on barrier islands that the owners simply could not afford if they had to pay market insurance rates.

    we don’t need new laws to prevent people from building in wrong places.

    we just need to stop subsidizing them and let them handle the insurance costs.

  5. Groveton Avatar

    The federal government is not some benevolent rich old man doling out his own money to those in need.

    It’s our money.

    Why shouldn’t the federal government give us back our own money when we need it? If the question is whether disaster relief should be a national priority – that may be a good question. However, that question can only be answered in light of the other priorities.

    If the question is whether the government should increase the deficit by handing out disaster relief that is not in the federal budget, that’s sort of legitimate. But, then again, it comes back to priorities. Why would it be OK to increase the deficit by making welfare payments but not OK to increase the deficit by making disaster relief payments? Presumably because welfare payments would be seen as a higher priority.

    Jim’s points about Obama are right on the money. Once again he is using the money shovel to practice his own unique brand of fiscally irresponsible socialism. OK, it’s not unique. Castro came up with the idea first.

    Ms. Epps also makes a good point. Why does Eric Cantor feel the need to shoot off his mouth right now? Oh, I forgot. He’s from Richmond and world ends just outside Henrico County. If it doesn’t devastate Richmond – let them eat cake.

  6. Peter Galuszka Avatar
    Peter Galuszka

    So we’re dusting off right wing think tank tomes to somehow show that Barack Obama is a dangerous disaster spendthrift.

    Funny, but I seem to remember how McDonnell was mighty pissed with Obama’s people said no to tornado relief near Abingdon and other areas.

    More world view from our basements, eh?

    PG

  7. I am of two minds on this. I have always felt that the Govt is needed in major disasters where public infrastructure is damaged and destroyed.

    but what is the legitimate role of govt with regard to private property?

    the way the Feds have approached flood insurance (which is part of FEMA) illustrates this – that between subsidizing mortgages for second homes at beaches and other waterfront locations – they also subsidize the insurance and the result is that too many people build in places where the private insurance market would not insure or if they did, it would weed out all but the rich.

    Another area where the Feds distort the market is by essentially making taxpayers insuring Nukes – when the private insurance market would know from the get go that Nuke Plants are premised on a low-ball risk assessment with regard to natural disasters.

    How many Nukes would there be if the govt let Dominion figure out how they were going to insure?

    Finally – Medicare Part B – where the Feds are charing most about $100 a month for insurance that – in the end – must cost much more than that – or it will either go broke or break the budget.

    I’m not advocating against the govt involvement. Think 65 years of SS that instead of deficits – it generated surpluses… so if the program is set up properly – it can work.

    but our disaster relief, flood insurance, and health insurance is not set up to stay within the lines.. and all of them exceed what they were planned to pay.

    I would posit – that this – in no small part has fired the “govt is broke and incompetent” sentiment in the country…

    People want govt to work – to be effective – to not run deficits… and when it doesn’t the politics go to hell in a handbasket as we see right now – with Cantor insisting that we actually find a way to pay for this disaster.

  8. Barack Obama *is* a dangerous disaster spendthrift.

    One of the points made by the “right wing think tank tome” cited above is that the indiscriminate doling out of disaster dollars creates an expectation by state and local officials that they warrant federal aid every time it rains hard. McDonnell falls into that pattern. Do I respect McDonnell for begging for federal money? No. But as long as The Big O is doling out the dollars, governors across the country are going to ask for their share.

    As for Eric Cantor, Andrea, I see nothing “callous” whatsoever with his argument. When the budget deficit is running over $1 trillion a year in the third year of an economic recovery, the U.S. has to make some hard choices somewhere, some time. If we don’t make those hard choices now, then the hard choices will be imposed upon us by merciless financial markets when the country is faced with default. If we want to dole out disaster dollars, then we need to cut spending somewhere else. I live in Eric Cantor’s district and I *expect* him to advocate that kind of financial discipline.

    I also agree with Larry’s point. Federally subsidized flood insurance and disaster assistance have created a sense among American people that they can build anything, anywhere, without paying the full cost of the risks they are entailing. Build a $2 million beach-front house on a barrier island? It makes perfect sense when Uncle Sam is taking on half the risk. I would think that class warriors like Peter would take exception to such favorable treatment of wealthy owners of vacation homes. But it’s so much more satisfying to the liberal mindset, apparently, to increase the rate on the personal income tax. What a strange obsession!

  9. ” But as long as The Big O is doling out the dollars, governors across the country are going to ask for their share.”

    is the BIG O doling out money any differently than the the Big B did?

    Ron Paul gives the example of what CF FEMA was under Bush….
    .. and that it has not changed.

    sometimes I think there is a double standard with respect to the BIG O.

    just a suspicion… 🙂

    with respect to flood insurance… the govt does have a role IMHO with regard to public infrastructure and they can ..using the carrot/stick approach convince localities to not allow building in a flood plain.

    but is that the right approach? In other words … if someone wants to build in a flood plain what business is it of the government anyhow?

    I would ASSERT that it IS the business of govt if those who build in the flood plain want roads, water, sewer, fire, police, etc…

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