EDWARD P. BOLAND, Massachu- HAROLD C. OSTERTAG, New York setts JANUARY 18, 1956. FEDERAL CIVIL DEFENSE ADMINISTRATION DISASTER RELIEF WITNESSES GOV. VAL PETERSON, ADMINISTRATOR, FCDA HAROLD L. AITKEN, EXECUTIVE ASSISTANT ADMINISTRATOR Mr. THOMAS. The committee will please come to order. We have with us this morning the Federal Civil Defense Administration. We are delighted to have such a distinguished crowd of old friends here with the distinguished Administrator, Governor Peterson, Harold Aitken, Executive Assistant Administrator, Frank O. Starr, Director, Budget Office, Mr. Wagner, Mr. Poblenz, Mr. Brown, Mr. Gerald Gallagher, Mr. Heffelfinger, Mr. Hubert Gallagher, Mr. Reutzel, Mr. Üllstrom, Mr. Sutch, Dr. Hozier, and Mr. Snyder. Governor, we would like to take up briefly here this morning the supplemental request contained in House Document 291 for $25 million for emergency relief or necessary expenses to carry out the purposes of the act of September 30, 1950, as amended, authorizing assistance to States and local governments in major disasters, providing that not exceeding 4 per centum of the foregoing amount shall be available for administrative expenses. I understand you want to hike the administrative cost limitation from 2 percent to 4. Give us the justification. Do you have a statement? Governor PETERSON. I have a very brief statement. It might be well if you would permit me to read this statement. Mr. THOMAS. With pleasure. (1) GENERAL STATEMENT Governor PETERSON. Mr. Chairman and members of the committee, as you know, the President assigned the responsibility for administration of disaster relief to the Federal Civil Defense Administration on January 16, 1953, by Executive Order 10427. At that time, there was a balance of approximately $20 million unallocated from funds appropriated under this law in prior years. As of January 16, 1956, there is available for allocation in any future disasters, or in supplement to those which already have occurred, $3,116,259. A detailed statement of the allocations from this fund is provided in the printed justification. We have found no way to estimate future allocations from this appropriation with any accuracy. While there has been a general pattern of floods in the spring, and tornadoes during the summer months, the exceptions to this general pattern have frequently meant more, moneywise, than disasters which we have had some reason to anticipate on the basis of past experience. Natural disasters do not respect fiscal years nor do they pay much attention to long-range forecasts of needs. Allocations from this fund typically do not follow any regular or average amounts from month to month or from year to year. I cannot say with any certainty that the amounts now available will be insufficient to take care of disasters during the remainder of fiscal 1956 and fiscal 1957. I am equally unable to state that serious and expensive disaster situations will not occur during that period. Consequently, I am appearing before you today, at the President's direction, to ask for an additional $25 million for the "Disaster relief" appropriation. In my opinion, this is a matter of ordinary prudence to allow such immediate action by the President in any future disasters as may be required. ALLOCATIONS FROM THE FUND Since July 1, 1955, it has been necessary to allocate to States a total of $10,284,498, primarily to provide relief from the damage of the late summer and fall hurricanes and resulting flood on the eastern coast, and from the disastrous flooding in the Western States. The amounts used from this appropriation are only a part of the assistance provided by the Federal Government in disaster situations. In the first phase of a disaster when life and property are in jeopardy, the Federal Government, like any good neighbor, pitches in immediately without regard to bookkeeping. No "cost-accounting" is done as lives are being saved. In the second phase, the "cleanup" portion of a disaster, Federal Civil Defense carries the Federal Government's responsibilities as outlined by the Congress in Public Law 875. Because the magnitude of the Northeastern flood disasters made it apparent that not enough money was on hand in the President's disaster fund, the Corps of Engineers, after consultation between the President and congressional leaders, was called on to act through a directive issued by FCDA. The Corps of Engineers spent $31.6 million in addition to the $5.5 million allocated to the States by FCDA. The $31.6 million was made available from funds appropri ated directly to the Corps of Engineers, and is to be replenished by appropriations to that agency. The "Disaster relief" appropriation is intended for a limited number of purposes. It does not provide direct assistance to individuals. It does not provide preventive work against future disasters. It does not provide permanent replacement of things destroyed in disasters. Its purposes are purely temporary and are mainly for the restoration of essential community facilities and for stopgap measures to make it possible for a State or community to resume necessary services. While much of the money available from the appropriation is used in disasters of great magnitude, such as this year's Eastern and Western floods, I should like to call to your attention the fact that during calendar year 1955 assistance was provided to 15 States and to the Territories of Hawaii and Alaska. Over the period of years that this fund has been administered by FCDA, 30 States and 2 Territories have received assistance. Natural disasters are no respectors of political boundaries. Whether it is in my State of Nebraska or in the great States represented by members of this committee, natural disasters are a constant threat to all of the people of our country. I know that the Government will not want to be unable to assist any stricken area because of the lack of available funds. Consequently, I strongly urge that an additional $25 million be appropriated to the President for "Disaster relief." You will recall that among others, I had to disturb you during the time of the Northeastern disaster. Mr. THOMAS. You were just on the ball. Governor PETERSON. In order to get Mr. THOMAS. It is something you have no control over, you or the weatherman or anyone else. Governor PETERSON. Yes, sir. Mr. THOMAS. For the fiscal year, then, I will put it like this, you had a total of $13,205,895, of which $32 million was appropriated as new, fresh money. Governor PETERSON. That's correct. Mr. THOMAS. What have been your heartaches and difficulties? NORTHEASTERN FLOODS Governor PETERSON. The real problem we ran into in the Northeastern United States last year where the tremendous disaster occurred, actually two disasters, was that the damage was so extensive that it was obvious at first glance that we would not have enough money in the fund to take care of the situation. So, you will recall, Mr. Chairman, by consultation with the appropriate Members of the House and the Senate, it was agreed that we would be permitted to go ahead, that the administration would be permitted to go ahead and use the services of the Corps of Engineers and particularly use funds that the Corps of Engineers had available to do the work that needed to be done, up in that part of the country. Mr. THOMAS. What was that figure? I saw it in your justification. Governor PETERSON. The Corps of Engineers spent $31,600,000. We have allocated somewhat over $5 million. We cannot be exact, because these matters, it takes a long time to close the books. This means that that one disaster involves over $36 million. Mr. THOMAS. $31 million came from the Corps of Engineers? Governor PETERSON. That's right, and we will spend five or a little more before we get through, so that will make approximately $36,500,000. Mr. THOMAS. What is the amount now available as of the first of January of this year? Governor PETERSON. $3,116,000 as of today. CALIFORNIA FLOODS Mr. THOMAS. Have you cleaned up the California situation? Governor PETERSON. No; that California situation is going to cost more money because in part of that area we had a bad break. There was a second period of very high rainfall and some of the temporary work we did following the first one Mr. THOMAS. This week now Governor PETERSON. So some of the work that we did following Christmas time has since gone out in the rains last week, so we don't know what the total is going to be. Mr. THOMAS. What the situation actually amounts to is this, as of today, you have in round figures, $3 million. You are right in your heavy period when most of these floods and disasters happenJanuary, February, March, and April-and no one knows what the situation will be. You may not need $5 million; you may not need ten or twenty-five, but on the other hand you may need fifty. If you do not need it, you are not going to spend the money. appropriated until expended. Governor PETERSON. That is correct. Mr. THOMAS. Briefly, that is the situation. ADMINISTRATIVE COSTS What about your administrative costs now? Governor PETERSON. I would like to It remains Mr. THOMAS. It might be well, Mr. Reporter, to insert pages 2, 4, 5, 10, 11 and 12 in the record at this point. (The pages referred to are as follows:) DISASTER RELIEF, EXECUTIVE OFFICE OF THE PRESIDENT The disaster relief program has the following major objectives: $25, 000, 000 1. Provide a continuing means of assistance by the Federal Government to State and local governments to alleviate suffering and damage resulting from major natural disasters. 2. Provide a coordinated means of immediate assistance when a disaster is imminent. 3. Provide financial assistance for emergency necessary protection needs, public health measures, emergency repair and temporary replacement of essential public facilities, temporary housing, provision of Federal surplus property and funds as required by the nature of the disaster. BASIS OF ESTIMATE This supplemental request of $25 million is necessary at this time because the current level of the Disaster Relief Appropriation is insufficient to adequately handle possible future disasters. The recent series of flood disasters which have occurred in the northeastern States have seriously depleted the disaster appropriation and in view of past history, replenishment of the fund is required. Last fiscal year, in the period from December 1, 1954, until June 30, 1955, this administration allocated approximately $5 million for disasters such as floods, tornadoes, hurricanes, or fires. The balance in the disaster fund as of December 31, 1955, was approximately $5 million. In addition to this request for funds, the Corps of Engineers is also requesting funds to replace appropriations used to cope with the flood damage in the northeastern States. Their estimate requests approximately 31.6 million. This administration has agreed with the corps, that should total costs exceed the estimate of 31.6 million, FCDA would reimburse such excess costs from the disaster fund. To indicate the severity and type of disasters that are administered by this agency, the current situation in Oregon and California can be used as an example. From the total of $5 million previously mentioned, $1 million has already been allocated to California. The last year's experience, previously stated, did not |