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Story originally printed in the Winona Daily News or online at www.winonadailynews.com

Published - Saturday, September 08, 2007

$31.8M in flood relief on the way; Lawmakers hope for more funding

By Mark Sommerhauser / Winona Daily News and The Associated Press

ST. PAUL — Gov. Tim Pawlenty directed state agencies Friday to provide $31.8 million of state aid to the rebuilding effort in flood-stricken southeast Minnesota.

Several local lawmakers hope the move will be the start — not the sum — of state aid to rebuild the region.

Rep. Ken Tschumper, DFL-La Crescent, insisted a special legislative session still is necessary to provide $100 million of state aid to homeowners, renters and business owners.

“The governor has been lobbied intensely, and he doesn’t seem to quite get the message yet,” Tschumper said.

Pawlenty said Friday that he’s prepared to call a special session “as soon as we get an agreement” with state legislators on its agenda.

The relief package Pawlenty announced Friday includes assistance for homeowners, businesses and additional help for governments to repair infrastructure. The money will be redirected from money that had already been appropriated for other state agencies.

“These executive funding actions are the next steps in providing state financial help for homeowners, businesses, and communities,” Pawlenty said.

The package includes:

$16 million to Minnesota Housing Finance Authority — The funds can be used for loans to rehabilitate damaged home s and apartments, new construction and for mortgage down payment assistance. State assistance will help address gaps in federal assistance from the Small Business Administration and FEMA.

$5.2 million to Department of Employment and Economic Development — This funding will provide grants and loans to local units of government to rebuild flood damaged public and private facilities. DEED will work with cities and counties on the best use of these funds, including business loans and assistance.

$4.6 million to the Department of Natural Resources — The DNR will use these funds to begin repairing trails, roads and infrastructure in Whitewater State Park, on the Root River State Trail and in state forests. The agency also will begin making stream and bank improvements required because of flood damage and severe erosion.

$3.3 million to the Minnesota Pollution Control Agency — These funds will be used to assist the reconstruction of stormwater infrastructure and help manage and dispose of additional volumes of household hazardous waste generated as a result of flooded homes.

$2.2 million to the Department of Agriculture funds will be available for a variety of disaster loan and grant programs. These programs are targeted assistance to individuals, businesses and local units of government to help pay for the replacement of rural septic systems, feedlot repair, cleanup and removal of debris, lost seed, machinery repair, loss of feed and livestock, and other costs not covered by insurance.

n$500,000 to the Department of Commerce — State funds will provide assistance to the Minnesota Energy Assistance Program and will be available for income qualified residents, especially for the repair or replacement of damaged furnaces and boilers.

Pawlenty also said his office “will continue to work with the Legislature” because an additional financing package is necessary.” A governor’s spokesperson said additional needs include a DEED package to provide forgivable loans and grants for small businesses.

Rep. Steve Drazkowski, R-Wabasha, said restoring the economies of flooded communities is critical.

“There’s been a lot of focus on assistance to individuals, but traditionally businesses have had more of a difficult time coming through these (disasters),” Drazkowski said.

Local Democrats like Sen. Sharon Erickson Ropes, DFL-Winona, continued to urge Pawlenty to set a special session date.

“I am amazed and perplexed as to why the governor will not let the Legislature do our work,” Ropes said.

Tschumper said Friday’s announcement was “no great breakthrough” because it only redirects money for agencies already dealing with tight budgets. He emphasized that cash grants are needed to help homeowners, renters and business owners.

“Most people can’t afford another loan,” Tschumper said.

Pawlenty also announced Friday that the Department of Revenue will temporarily waive the tax paid for hauling construction debris generated in the presidentially declared disaster area. The tax is paid by waste haulers and passed along to residential and business customers. The debris must have resulted from flood-caused demolition and repair and be hauled to a facility designated by the MPCA.