Attached is a flyer put together by FEMA to illustrate the deductible concept that is currently being discussed. At this time, FEMA is stating they have not committed to any specific plan, however the deductible is getting a lot of attention.
While DHSEM supports the overall concept of reducing the cost of disasters by incentivizing mitigation, we do not support the deductible concept as it is currently being discussed.
We believe this proposal is far too complicated and simply passes disaster costs from the federal government to the states and locals. DHSEM supports the following:
Increase the Per Capita Indicator for disaster declarations, adjusted for inflation. Spread the increase over five years, rather than in a single large adjustment. NM threshold is currently $2.9 mil, adjusted for inflation it should be around $10 mil.
Use the federal share percentage to incentivize mitigation and other risk reduction measures. Perhaps, start at 50% and add 5% to the federal share for each of the risk reduction methods such as building codes.
We encourage all Emergency Managers to review the concept and submit comments and suggestions to FEMA using www.fema.gov/deductible. The current Advanced Notice of Proposed Rulemaking closes April 12, 2017.
Public Assistance Deductible Flyer: