EARTHQUAKE RELIEF - ACTION NEEDED NOW

How well will state and local governments respond to the needs of the people and businesses who need assistance because of the earthquake? From history, we have a record of good responses and bad responses. The 1994 Los Angeles earthquake was an example of a good government response. Mt. St. Helens in 1980 and the 1989 San Francisco earthquake were both examples of poor government response. The key question for government officials is: Will the intended relief actually get to the people and businesses in need in a timely fashion.

President Bush has declared several Washington state counties disaster areas, enabling the release of federal funds to help in recovery operations. Unfortunately, there is a difference between funds authorized by the federal government and funds actually given to individuals and businesses.

The Governor and Legislature need to carefully review the agreement the Governor signed with the Federal Emergency Management Agency (FEMA). Two significant issues that are often overlooked in disaster recovery operations are: the cost-arrangement process and the eligibility for funds. These two factors need intense scrutiny now because they will ultimately determine the eventual federal contribution.

Past disasters have demonstrated that there is a short window of opportunity for government to be of real assistance to individuals and businesses who have been negatively impacted by the disaster. While that window is open, building codes can be upgraded, disaster preparedness policies can be adopted, and resources committed on a scale impossible to achieve at any other time. The most crucial task is ensuring that relief funds get to the people and businesses who actually need them; not to bureaucrats or labor bosses. This is not the time for prevailing wages and project labor agreements that end up costing taxpayers time and money.

State government should use these recommendations to help speed the recovery process:

• The Legislature needs to take action to cut through much of the bureaucratic red tape that accompanies road projects by streamlining the contracting process. This is particularly true for the Deschutes Parkway and the 4th Avenue bridge in Olympia. The Legislature should implement a system similar to Los Angeles, which rewarded contractors for work completed early and penalized contractors for work that missed deadlines.

  As a result of the reforms in California, the State was able to open the Santa Monica Freeway 74 days ahead of schedule, I-5 at Gavin Canyon 33 days ahead of schedule, and the I-5 to Highway 14 interchange reopened three weeks early.

• The Legislature needs to ban prevailing wage requirements and Project Labor Agreements from the recovery operations. This applies particularly to the needed repairs in the Legislative Building. There is no justification for giving this contract to labor bosses.
• In accordance with state law, assessors should be allowed to re-appraise areas that have been devastated by the earthquake.
• The Governor and Legislature should request that certain federal rules and regulations be waived for earthquake recovery operations (e.g. The Environmental Protection Agency waived clean air standards and did not impose sanctions after the L.A. earthquake, yet air quality improved.)
• The Legislature should exempt labor costs and materials for major earthquake renovations from the sales tax.

Local Government – Cities and Counties should:

• Waive building permit fees of damaged structures for six months.
• Waive development fees in areas being reconstructed.
• Exempt businesses destroyed or heavily damaged from business tax payments.
• Give impacted businesses a 90-day extension for filing their tax statements.
• Implement a streamlined permit issuance procedure to help property owners expedite repair of their buildings.
• Waive demolition permit fees.
• Assist in designed emergency loan programs that are responsive to the needs of the disaster victims.
• Create incentive programs to encourage business recovery in the areas hardest hit by the earthquake.

Wise leaders learn from the successes and failures of others. Our state and local governments can benefit from the lessons of past disaster relief operations, particularly from Los Angeles.

EFF has obtained a copy of a report on the city of Los Angeles’ response to the 1994 earthquake. More information is available by contacting our office.

Prepared by Bob Williams, Senior Research Analyst, (360) 956-3482 or effwa@effwa.org

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org