Records: Joplin twister was costliest since 1950
Sunday, May 20, 2012
JEFFERSON CITY, Mo. (AP) — The cost of 30 manhole covers that got sucked away: $5,800. A new concession stand at the destroyed high school: $228,600. Shelter and care for more than 1,300 homeless pets: $372,000.
The tornado that tore through Joplin a year ago already ranks as the deadliest twister in six decades. Now it carries another distinction — the costliest since at least 1950.
Insurance policies are expected to cover most of the $2.8 billion in damage. But taxpayers could supply about $500 million in the form of federal and state disaster aid, low-interest loans and local bonds backed by higher taxes, according to records obtained by The Associated Press and interviews with federal, state and local officials.
Almost one-fifth of that money was paid to contractors who hauled off debris. Tens of millions more dollars went to individuals for temporary housing and other living expenses in the immediate aftermath of the storm. Additional money could help subsidize construction of a new hospital to replace one that was irreparably damaged.
All told, about two dozen school districts, emergency agencies, public housing authorities, religious groups and other nonprofits could receive taxpayer money through a program run by the Federal Emergency Management Agency.
The outpouring of assistance is nowhere near the scale of Hurricane Katrina, which swamped New Orleans and damaged property along a wide swath of the Gulf Coast in 2005. Yet the Joplin tornado raises questions anew about the government's role in disasters.
For Joplin families still on the long road to recovery, the taxpayer aid generally is appreciated.
The twister killed Danielle Robertson's mother and destroyed the duplex she shared with her teenage daughter and two dogs. After several months of temporary living arrangements, Robertson eventually got one of the FEMA trailers for tornado survivors. No rent or utility payments were required.
"There are just thousands of people who would not have recovered at all had that aid not been there. I mean there's no way," said Robertson, who finally moved into a rebuilt rental home about three weeks ago. "I like to consider myself a survivalist, but there was nothing to survive with."
The Joplin tornado, which killed 161 people, was one of 99 major disasters declared by President Barack Obama in 2011. Other included blizzards, wildfires and hurricanes. Congress responded in December by authorizing an extra $8.6 billion in disaster aid.
Missouri has a rainy day fund with about $500 million that was created for costly emergencies. But the fund hasn't been tapped for Joplin because Gov. Jay Nixon and some lawmakers are reluctant to trigger a constitutional mandate that the borrowed money be replenished within three years.
Some critics of federal disaster aid point to Missouri's rainy day fund as a prime example of how states pass the buck to the federal government for local tragedies.
"It seems to me this indicates the bad incentive problem that comes with federal involvement — that states would rather tap federal taxpayers before they have to tap their own taxpayers," said Chris Edwards, an economist and editor of downsizinggovernment.org, a website run by the Washington-based Cato Institute, a group that promotes free markets.
FEMA Director Craig Fugate said it takes an especially destructive tornado to trigger federal aid. What made the Joplin tornado so unusual was the intensity of the devastation in such a concentrated area, he said.
"We're talking thousands of families impacted, hundreds of deaths, the trauma to the community alone was overwhelming," Fugate said. "The likelihood of Joplin being able to recover successfully without federal assistance ... warranted the president declaring it" a disaster zone.
Some of the taxpayer-subsidized projects, such as rebuilding St. John's Regional Medical Center, will benefit people well beyond Joplin. The hospital served patients from a wide region extending into southeastern Kansas and northeastern Oklahoma.
Hospital administrators estimate their total cost from the tornado at $950 million, including demolishing the old building, creating temporary facilities and constructing a permanent replacement.
The hospital expects to get more than $345 million from insurance. It's submitted more than $88 million of expenses to FEMA, of which the federal government could pay for 75 percent. The rest will be covered by private donations and the resources of the Sisters of Mercy Health System, which runs the hospital.
"We do hope to get some money from FEMA, but we're not counting on that," said Shelly Hunter, the chief financial officer for Mercy Health of Joplin.
The cost of replacing damaged school buildings will be covered largely by insurance, too. But voters recently approved the largest bond issue in Joplin history — $62 million — to help rebuild or repair 10 school buildings. The resulting property tax increase is estimated at $65 a year for the owner of a $100,000 home — roughly a 10 percent hike.
The Joplin school district has sought disaster aid for dozens of costs not covered by insurance, such as a truck and trailer used to shuttle band equipment between makeshift school buildings, as well as the concession stand, bleachers, flagpoles, fences, outdoor basketball hoops and new mulch for playgrounds. The cost to remove and replace the mulch at just three sites: $7,100.
The city has its own share of tornado costs, like the manhole covers. The tornado also destroyed two sirens that warn people of dangerous storms. Taxpayers paid more than $41,000 for temporary and permanent replacements, according to disaster-aid records.
During the cleanup, 14 fire hydrants and curbs and gutters at 111 locations were damaged by heavy equipment. And tires were punctured on about 125 vehicles, costing almost $57,300.
The American Society for the Prevention of Cruelty to Animals said it spent $1.2 million providing shelter and veterinary care for 1,300 homeless pets after the tornado. The city of Joplin agreed to cover $351,000 of those costs and now is seeking reimbursement from FEMA. It's seeking an additional $21,000 for costs incurred by Joplin Human Society.
Federal disaster aid rules also reward local entities for the charitable work and donations of others. Joplin expects to receive $1 million through FEMA as a partial credit for an estimated $17.7 million worth of volunteer labor and donated supplies and services. That money can be used to offset the city's own expenses for debris cleanup and emergency response.
"The fact that we can basically break even from a tornado of this magnitude is astonishing, and it's in large part due to the donated resources," city Finance Director Leslie Jones said. "Not only did it help us financially, they helped us clean up our community. I don't even have words to describe it."
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