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Published - Friday, August 24, 2007
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Area legislators call for aid, special session

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With already strained budgets, officials in southeastern Minnesota cities hit by weekend floods are uncertain how they will replace critical infrastructure, as well as homes and businesses.

Rep. Gene Pelowski, DFL-Winona, who represents Houston said it’s time for state government to step in.
Pelowski and other area lawmakers are calling on Gov. Tim Pawlenty to call a special legislative session to work on funding for southeastern Minnesota, as well as the collapsed Interstate 35W bridge and other transportation needs.

Pawlenty spokesman Alex Carey said the governor would be in favor of a special session only if the details for a flood-relief package would be ironed out before.

“Right now the governor has been concentrating on federal assistance,” Carey said.

Rep. Ken Tschumper, DFL-La Crescent, is concerned with recent comments Pawlenty made, hinting that relief from the state government should only be short-term and temporary.

“We might be at loggerheads,” Tschumper said. “They don’t need more low-interest loans. They need money to bail out. We need an infusion of money.”

Carey said the governor will support a one-day session, but wants to include items that have been a priority for his administration — namely property tax relief. The special session would also focus on transportation needs, Carey said.

Dan McElroy, commissioner of the Minnesota Department of Employment and Economic Development, said this morning the state can do little to help local governments unless authorized by the Legislature.

“Absent an appropriation... there is no contingency fund,” he said at a news conference.

Pelowski said there’s precedent for a special session; it happened in 1997 after flooding in the Red River Valley and after a tornado hit St. Peter.

Area legislators are focusing on banking, insurance, housing, aid to businesses and local governments, many of which they say don’t have the money to pay for flood clean-up.

Sen. Sharon Erickson Ropes, DFL-Winona, said she is working with cities to assess housing needs.

Ropes also said she’s hearing horror stories from residents about insurance companies refusing to pay claims.

“They have flood insurance, but they say they can’t pay. It’s a fine print thing,” Ropes said. “Legally it might be right, but ethically, it’s shameless.”

Ropes is urging the formation of a committee to work with insurance companies and residents.

Pawlenty said at a press conference Thursday afternoon that residents with insurance problems should contact the state Department of Commerce or the Minne-sota Attorney General’s office.

Rep. Steve Drazkowski, R-Wabasha, supports a special session but said legislators must not be reactive.

He’s hoping to provide tax relief to those affected by the floods.

He envisions a bill that would exempt flood victims from sales tax on items used to rebuild. For businesses, he would support tax breaks that would actually encourage them to expand.

Area legislators are also hoping that more aid will be coming to local governments.

“The needs are huge and only getting larger,” Pelowski said.

Drazkowski toured Stockton and Goodview on Thursday.

“A place like Goodview really took it on the chin as far as local government aid,” Drazkowski said. “They need some help.”
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Mark Kulda wrote on Aug 25, 2007 12:48 PM:

" It would be helpful to know some of the details of where policyholders were being told that even though they had flood insurance, it won't pay. That's probably not true. If the policyholders indeed had flood coverage from the National Flood Insurance Program, it will pay according to their guidelines (which does however have an exclusion on flooded items in a basement). And again, when a flood insurance policy does not pay out, it is not an insurance company saying this....it is FEMA since FEMA runs the National Flood Insurance Program. "


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