State & Local Govts Employ Novel Financing for Disaster Resilience
TL/DR –
The US government invested over $50bn in hazard mitigation and disaster resilience in 2021 and 2022, but the future of federal funding remains uncertain due to rising disaster costs. State, county, and city governments are developing innovative local approaches to finance community resilience projects. For example, in Chaffee County, Colorado, a 0.25% sales tax increase approved by voters in 2018 has generated $9 million in revenue and $36 million in matching funds from federal and state governments and other sources to fund a community action plan developed by local stakeholders.
US State and Local Governments Innovate in Disaster Resilience Financing
Due to escalating costs and threats from extreme weather, historic government investments in hazard mitigation and disaster resilience have reached over $50 billion cumulatively in the US. However, future federal funding levels remain uncertain. In response, state, county, and city governments are pioneering creative investment methods in resilience and risk mitigation. Recent successful ballot initiatives from California, Louisiana, Harris County Texas, and Honolulu show public support for such measures.
The State Resilience Planning Group (SRPG) recently highlighted innovative local approaches to finance community resilience projects. These initiatives range from the Rocky Mountains to the mid-Atlantic region.
In Colorado, Chaffee County addressed rapid growth and increased wildfire risk by establishing Envision Chaffee County. This initiative brought together various community stakeholders to develop the Envision Community Action Plan. A 0.25% sales tax increase has financed this plan since 2018, generating $9 million in revenue and $36 million in matching funds from federal and state governments.
Envision Chaffee County also implements the Chaffee County Community Wildfire Protection Plan, mitigating wildfire risk on over 10,000 acres of public and private forests.
In Maryland, the General Assembly authorized the creation of local resilience authorities in 2020. This led to the 2021 establishment of the Resilience Authority of Annapolis and Anne Arundel County, a pioneering multi-jurisdictional authority. They have secured $43 million for resilience projects and completed about $9 million in climate infrastructure projects.
A Maryland project funded by this authority and the National Fish and Wildlife Foundation successfully addressed pollution and erosion issues surrounding a waterway that feeds into the Severn River and Chesapeake Bay. The project expanded the surrounding wetland and engineered the streambed to slow water flow during severe storms.
Virginia launched the Resilient Virginia Revolving Loan Fund in 2022 to support risk mitigation projects for individual buildings. Its first funding round in 2023 focused on helping local governments meet requirements for federal or state matching funds. The fund operates alongside the state’s Community Flood Preparedness Fund, providing a comprehensive approach for local governments.
State and local governments are working collaboratively to plan for an uncertain climate future and to invest in effective solutions. Creative financing and local funding sources, coupled with forward-looking resilience plans, can expedite project timelines and allow communities to have greater input in project development, prioritization, and implementation.
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