Saint Paul – Governor Tim Pawlenty signed a bill this evening that appropriates $80.3 million in disaster relief for Minnesota communities affected by September flooding and June tornadoes.

The bill passed unanimously by the legislature during today’s Special Session, called by the Governor to address the state’s share of assistance following a federal disaster declaration for 21 flood-ravaged southern Minnesota counties.

Assistance is also included for areas of the state that were designated a federal disaster area this summer as a result of tornados and severe storms.

“We have acted quickly to provide the necessary relief and support for these communities to rebuild,” Governor Pawlenty said. “Today’s Special Session was held within a week of a federal disaster declaration, the fastest legislative response in Minnesota’s history. I thank legislative leaders for the strong bipartisan effort to pass this bill.”

The bill appropriates $38.5 million from the General Fund, $10 million from the state transportation fund, and $5 million from the Trunk Highway fund. It also authorizes $26.8 million in General Obligation Bonds.

The flood relief provisions of the bill include:

• $15 million for damaged state highway infrastructure and local roads and bridges.

• $14 million to the Department of Natural Resources for flood hazard mitigation grants, clean-up of public waterways, and repair of river gauges, and the repair or relocation of the Oronoco dam.

• $12 million to provide the state and local match for federal FEMA disaster assistance. Under the terms of a disaster declaration, the federal government covers 75 percent of eligible costs and the state covers the remaining non-federal share.

• $10 million for the Minnesota Investment Fund, administered by the Department of Employment and Economic Development, to provide locally administered grants or loan programs to eligible organizations, including businesses, directly affected by the disaster. To increase accountability, DEED is required to report to the legislature before making any grants.

• $10 million for the Reinvest in Minnesota program to acquire easements from landowners on marginal lands in the disaster area to protect soil and water quality and to support fish and wildlife habitat.

• $4 million for the Quick Start program administered by Minnesota Housing. Quick Start helps homeowners who are unable to repair or rebuild their homes due to flood damage expenses that exceed private insurance and federal assistance. The program provides forgivable, no-interest loans for home repair, new construction or a comparable replacement home, mobile homes, or single-family rental repair.

• $4 million to the Minnesota Department of Agriculture for livestock investment grants, organic certification assistance, forage production loss offsets for livestock producers, and no-interest disaster recovery loans.

• $3 million to help communities with erosion and sediment control.

• $523,000 for school districts that lost per-pupil funding or incurred increased transportation costs.

• $500,000 for the Public Finance Authority. The PFA makes low-interest loans and grants available to finance infrastructure that might otherwise be unaffordable to communities if they had to borrow money for the projects at market rates.

• $250,000 for clean-up of historical buildings.

Provisions of the bill pertaining to areas declared a federal disaster (FEMA-1921-DR) in July include:

• $5.2 million for the non-federal cost share for eligible expenses from the July storms. Counties named in that federal declaration are Blue Earth, Brown, Houston, Kittson, Nicollet, Sibley, Faribault, Freeborn, Olmsted, Otter Tail, Polk, Steele and Wadena.

• $750,000 to update Wadena’s existing pre-design and design plans for public facilities.

• $693,000 for school districts that incurred uninsured losses to buildings and equipment.

Today’s Special Session is being held only five days after the federal government declared 21 counties a disaster area on October 13. Special Sessions to deal with similar disasters took place in three previous cases:

• On August 18, 2007, severe storms caused flash flooding in southeastern Minnesota. The federal disaster was declared on August 23. A one-day Special Session was held on September 11, 2007.

• From June 9-11, 2002, heavy rains caused flooding in Roseau and the northwestern part of the state. A one-day Special Session was held on September 19, 2002.

• In April-May 1997, the Red River flooded, causing major damage in Minnesota, North Dakota and Manitoba. A one-day Special Session was held on August 19, 1997.

Governor Pawlenty declared a State of Emergency on September 23 as heavy rains — more than 10 inches in less than 24 hours in some communities — fell on saturated ground and caused flooding across the southern third of Minnesota.

In his letter to President Obama on October 1, Governor Pawlenty pointed to preliminary damage estimates that indicate 609 dwellings were affected across the region. Hundreds of federal, state, county, city, and township roads and highways were damaged, including the city of Oronoco that experienced a washout on both ends of a major bridge to the city. Other public infrastructure damage includes wastewater treatment plants, community centers, city buildings, state and local parks, schools, and athletic fields.

The federal declaration includes FEMA’s Public Assistance Grant Program for debris removal, and the repair or replacement of disaster-damaged, publicly owned facilities. It also includes federal Hazard Mitigation Grants. However, the presidential declaration did not include Individual Assistance.

As a result, Governor Pawlenty requested and received a Small Business Administration (SBA) Disaster Declaration, clearing the way for low interest disaster loans to homeowners, renters, businesses of all sizes and private, non-profit organizations to repair or replace real estate, personal property, machinery & equipment, inventory and business assets that have been damaged or destroyed in a declared disaster.

SBA’s declaration includes the counties of Blue Earth, Dodge, Faribault, Fillmore, Freeborn, Goodhue, Jackson, Martin, Mower, Olmsted, Rice, Steele, Wabasha, Waseca, Watonwan, and Winona.