Pryor Grills FEMA on Heavy-Handed Plan to Force Thousands of Arkansans to Buy Unnecessary Flood Insurance

Press Release

U.S. Senator Mark Pryor today told top officials at FEMA and the U.S. Army Corps of Engineers (USACE) that they need to find a common-sense alternative to the proposed flood recovery plan that reflects better planning, coordination and understanding of local infrastructure and communities. Congressman Marion Berry (AR-01) and a group of eight Senators expressed similar concerns during the contentious meeting.

"Levees and other flood control structures are the lifeblood of many Arkansas communities, and residents understand their importance and pay for their upkeep. It's irrational for FEMA to ignore these investments, and force people to spend hundreds, even thousands of dollars in flood insurance without good reason," Pryor said. "This meeting was an attempt to get FEMA's attention, reiterate this plan's negative consequences and discuss alternatives. I am prepared for a knock-out, drag-out fight to prevent this plan from bankrupting our communities."

During today's meeting with Craig Fugate, Administrator of FEMA, and Jo-Ellen Darcy, Assistant Secretary of the Army for Civil Works, FEMA offered to draft a plan that would establish a 5-member arbitration panel consisting of members selected by the local community and FEMA. It will present details in 30 days. Senators encouraged the agency to include additional remedies that take into account the costs involved for local communities affected by its plan.

The concept is similar to an amendment proposed by Senator Thad Cochran (R-Miss) and Pryor this week to the FY2010 Emergency Supplemental Appropriations Bill. Their amendment would establish a process where disputes between FEMA and local communities over Flood Insurance Rate Maps could be resolved by an independent arbitration panel. The 5-member panel would consist of experts in hydrology, administrative law or economic development. The amendment is modeled after the panels created by Congress to resolve disputes between FEMA and Gulf Coast communities related to FEMA's Public Assistance Program following Hurricane Katrina. Communities that enter arbitration are eligible for the same reimbursements available in current law to communities for successful appeals.

Pryor said he believes the Flood Insurance Rate Maps should be updated to reflect today's risk. He disagrees, however, with the process FEMA used when updating the maps. FEMA's current plan drastically expands flood zones despite existing levees and other flood control structures. This action will force residents to purchase flood insurance, imposing new economic challenges on communities and unnecessary burdens on homeowners, renters and business owners. Flood insurance, administered by FEMA, can cost Arkansas homeowners from $131 to $2,647 annually depending on coverage and location. It can cost businesses up to $5,000 annually and deter economic development in communities.

FEMA began sending letters to cities in Arkansas this week indicating they would no longer be eligible for federal disaster assistance, and residents and businesses could not buy or renew existing flood insurance plans if the new floodplain measures were not adopted by the city by July 6, 2010.

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