US Disaster Financing, a Potential Disaster for Coral Gables
August 30, 2010 Leave a comment
Let us hope that South Florida does not get hit by a strong hurricane, because neither the State of Florida nor the federal government have the financial resources to respond and reconstruct the city. The city of Coral Gables city manager states that he can draw on (raid?) their many reserve funds assigned for other purposes, but like the pension fund liabilities, this leaves us with the question of how these reserves would be reconstituted under present economic conditions without more property taxes or fees.
There may be a modest county, state and federal response, but any significant reconstruction cannot be financed by the state or the federal govenment, or the depleted state insurance funds. Take a look at New Orleans and you will see a model of weak federal and state government response and reconstruction.
Since the federal government has decided to be self-finance disaster reconstruction, alongside the federal budget deficits, money is not going here to help us after a disaster.