Recovery Objectives and Priorities James Lee Witt Associates June 5 th, 2008

2 Presidential Declarations

3 Top Ten FEMA Disasters EVENT YEAR FEMA FUNDING Hurricane Katrina and Rita (LA Only) 2005 $34 billion* Attack on America (NY,NJ,VA) 2001 $9 billion Northridge Earthquake (CA) 1994 $7 billion Hurricane Ivan (AL,FL,GA,LA,MS,NJ,NY,NC,PA,TN,WV) 2004 $2.4 billion Hurricane Georges (AL,FL,LA,MS,PR,VI) 1998 $2.25 billion Hurricane Wilma (FL) 2005 $2.1 billion Hurricane Charley (FL,SC) 2004 $1.89 billion Hurricane Andrew (FL,LA) 1992 $1.8 billion Hurricane Frances (FL,GA,NY,NC,OH,PA,SC) 2004 $1.77 billion Total $28.2 billion *and climbing

4 From 1991 to Katrina: Individual Assistance $ 306,313,000 Public Assistance $ 352,410,500 Hazard Mitigation $ 78,401,500 (HMGP) $ 22,000,000 (FMA) SBA Loans $ 247,401,500 Total $1,006,626,500 Total Grants Processed

5 Katrina – Rita Recovery Metrics 1,400 + Unique Applicants – 20 Applicants with over $100 million in Damages – 7 Applicants with over $200 million in Damages – 3 Applicants with over $300 million in Damages – 1 Applicants with over $500 million in Damages 21,000 + Total Projects 4,700 Large C-G Projects 2 ½ Years post-event: –$3 billion Reimbursed –34% of Large C-G Projects started ($900 million spent) –10-20% of Large C-G Projects Construction Started Entire School Districts Require Rebuilding Over 400 Building Designated as Replacement 960 Projects Under Appeal Previous 10 years Average Disaster Size $40 Million wo/Katrina $60 Million w/Katrina

6 Recovery Comparisons Louisiana Mississippi Totals are in $ Billions Information provided by FEMA/GOSHEP – April 2008

7 Major Impediments to Recovery Magnitude of impacts Applicant resources Cash flow Funding gaps Problematic PWs Programmatic complexities

8 Insurance reductions −NFIP −General property insurance FEMA ineligible work (deferred maintenance) Alternate project penalties (25%) Opportunity upgrades (enhancements) Funding Gaps

9 Katrina Hospital Estimated Cost to Repair: $10.2 Million NFIP Reduction – Structure * NFIP Reduction – Contents * Anticipated Property Insurance Reduction * FEMA Ineligible Work (Enhancements) FEMA Ineligible Work (Deferred Maintenance) * Available FEMA Funds $7.50 Million Funding Gap $2.70 Million * LRA/OCD to Provide for Funding Gap (public schools) Common Dilemma

10 Impact on Business “A Company that experiences a computer outage lasting more than 10 days will never fully recover financially. 50 percent will be out of business within five years.” “An estimated 25 percent of businesses do not reopen following a major disaster.“ “70 percent of small firms that experience a major data loss go out of business within a year.“

11 Impact on Business Of companies experiencing catastrophic data loss: –43% never reopened –51% of companies closed within 2 years –80% of companies that do not recover from a disaster within one month are likely to go out of business –Of those businesses that experience a disaster and have no emergency plan, 43 percent never reopen; only 29 percent are still operating two years later –75% of companies without business continuity plans fail within 3 years of a disaster

12 Private Sector Participation Impacted Organization Regulated/Responsible Party Response Resource Emergency Management Partner Component of Economy Business Continuity/ Disaster Recovery Assistance Emergency Planning / Best Practices / Information Sharing Operational Requirements / Donations Coordination Pre-event Collaboration / Mutual Aid/Assistance Agreements Situational Awareness / Access / Assistance in Restoration ↔↔↔↔↔↔↔↔↔↔