Governor Says Sandy’s Economic Costs Projected to Be ‘Up to $6 billion’

empty street getty Governor Says Sandys Economic Costs Projected to Be Up to $6 billion

(Photo: Getty)

Hurricane Sandy, which wreaked havoc on good portions of New York State, clearly won’t be cheap to clean up, and Gov. Andrew Cuomo has avoided giving a specific number to the costs.

In a letter to President Barack Obama requesting maximum compensation from the federal government, however, Mr. Cuomo said the loss of economic activity alone in the state would yield “up to $6 billion in lost economic revenue in the greater metropolitan area and the State due to the severe disruption of business in the world’s leading financial hub and the largest port on the northeastern seaboard.” And that’s just the initial estimate, as empty streets, damaged infrastructure and other storm-related consequences continue to take their toll on businesses and the tax revenue they would have otherwise generated.

View the full letter below:

October 31, 2012

The Honorable Barack Obama
President of the United States
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500

Through: Ms. Lynn Canton
Regional Administrator
Federal Emergency Management Agency, Region II
26 Federal Plaza, Room # 1311
New York, New York 10278
Re: DR-4085
Federal Cost Share Increase
Dear Mr. President:

New York is requesting the maximum authorized federal reimbursement for federal aid pursuant to 44 C.F.R. § 206.47(b) and (d) in the response to and recovery from Hurricane Sandy in all of the federally declared counties in New York State. Under subdivision (d), FEMA is authorized to provide 100% reimbursement for Direct Federal Assistance and Category B emergency protective measures implemented in response to the hurricane. Under subdivision (b), FEMA is authorized to grant New York 90% of the eligible costs of permanent work.

As described in 44 C.F.R. § 206.47(d), “If warranted by the needs of the disaster, we recommend up to 100% Federal funding for emergency work under section 403 and section 407, including direct Federal assistance for a limited period in the initial days of the disaster irrespective of the per capita impact.” We have determined that the significant impacts from Hurricane Sandy plainly warrant providing this assistance.

Our counties are responding to the continued impacts of multi-building fires, tunnel closures, power losses to hospitals and other critical infrastructure, destroyed homes and sheltered populations – all in the midst of historic flooding that has complicated emergency response operations exponentially. Moreover, the cost to restore the complex electrically driven subway and rail transportation systems after total inundation from saltwater flooding will place a tremendous financial burden on New York State. The impact of this storm on thousands of small businesses is devastating and unprecedented. Initial estimates project up to $6 billion in lost economic revenue in the greater metropolitan area and the State due to the severe disruption of business in the world’s leading financial hub and the largest port on the northeastern seaboard.

This support is critical to ensuring that our State and local governments are able to respond effectively to the emergent and continuing issues associated with the devastation caused by Hurricane Sandy.

Should you have any questions, your staff may contact Steve Kuhr, the State Coordinating Officer[…]
Sincerely,
ANDREW M. CUOMO