Office of Management and Budget Print this document

March 4, 1999

H.R. 707 - Disaster Mitigation and Cost Reduction
Act of 1999

(Fowler (R) FL and 8 cosponsors)

The Administration strongly supports the principles of H.R.707 to develop and implement measures to mitigate the effects of disasters, both before and after they occur. The Administration, however, is deeply concerned that specific provisions of H.R. 707 could reduce the benefits of the bill. For example, H.R. 707 would:
  • Exempt private non-profit entities that provide critical services from a requirement to apply to the Small Business Administration for a disaster loan before receiving FEMA disaster assistance. These entities should be subject to the same requirements that the bill applies to other private non-profit entities.

  • Establish a pilot State Administration of Damaged Facilities Program. The Administration questions the need for this provision because similar programs are already being implemented across the country under existing authority.

  • Allocate funds to the States by a formula which is overly prescriptive and potentially unresponsive to the individual needs of States and communities.

The Administration looks forward to working with the Congress to fashion a mutually acceptable bill.

Pay-As-You-Go Scoring

H.R. 707 would affect direct spending and receipts; therefore, it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990. OMB's scoring estimate of this bill is under development.

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