MEMA warns expanded FEMA "Other Needs" eligibility is raising state costs; agency seeks fund transfers and replenishment

Executive Director Gary McCraney of the Mississippi Emergency Management Agency told legislators at a budget hearing that a federal change expanding FEMA's Other Needs Assistance (ONA) registrations has increased the state's 25% cost share and is driving up monthly bills to the disaster trust fund.

McCraney said the federal intake process now funnels more registrants into FEMA assistance (rather than routing them first through the Small Business Administration), which has led to a large jump in ONA payments that trigger the state's required 25 percent share.

That change matters because it can convert smaller, localized events into larger state costs. ‘‘They say mitigation prevents $6 of work we gotta do later on in a disaster,’’ McCraney said, explaining why he wants to prioritize mitigation funding.

McCraney outlined recent ONA totals from Mississippi disasters and the fiscal effect: for example, he cited one declaration (referred to in the transcript as ‘‘4790’’) with about $11,000,000 in ONA claims and said the state’s 25 percent portion of that ONA would be paid from the disaster trust fund. Senator Hobson asked, "Was that 4790, was that a a series of tornado events or which what was the disaster for that?" McCraney replied that the April event included several long-track storms affecting six counties in the metro area.

To blunt the new and larger ONA bills, McCraney proposed three budget moves: (1) transfer approximately $4.7 million left in a Rolling Fork housing fund into MEMA’s mitigation account to leverage federal mitigation match, (2) authorize a contingency or line of credit or add roughly $7 million to the state disaster trust fund to cover ONA-only bills, and (3) fund replacement of agency drones and other equipment. Agency staff told legislators the drone-replacement line in the request is roughly $635,000; MEMA also identified a $7,000,000 request to replenish the disaster trust fund in the same package.

McCraney said the $4.7 million transfer could be used as state match to multiply mitigation dollars — turning roughly $4.7 million into a larger pool for projects such as safe rooms or dam repairs. He said roughly $94,000,000 in FEMA mitigation awards have been locked for Mississippi since 2016 but that actual expenditures are lower because many localities must front project costs and then wait for reimbursement.

On mitigation grants for homeowners, McCraney said MEMA has subsidized individual safe-room construction. He said about 103 applicants have been reimbursed and roughly 253 applications remain in the queue awaiting inspection and final certification; applicants commonly pay several thousand dollars up front and then seek reimbursement. McCraney also told the panel that mitigation staff verify safe-room construction to applicable standards before sending reimbursement requests to FEMA.

Other items covered in the presentation:

- Jackson water response: MEMA staff estimated the state’s eventual total share for the City of Jackson water emergency could be about $3.5 million after federal reimbursements and recategorizations are complete.

- CDBG-DR and other federal funding: McCraney noted a nearly $135 million Community Development Block Grant–Disaster Recovery (CDBG-DR) allocation was expected to flow through the Mississippi Development Authority for workforce and housing recovery projects.

- Staffing and operations: MEMA reported filling multiple vacancies over the prior year (new hires and promotions decreased vacancies from roughly 34 openings down to an expected 20), and the director asked to maintain hiring flexibility to keep institutional knowledge in disaster response.

- Equipment: McCraney requested replacement funding for drones restricted by federal procurement rules (he said the state has a one-year waiver allowing continued operation but needs to buy replacement aircraft from approved non-covered-country manufacturers).

- Dams and coordination: Senators and commissioners raised concerns about local dam safety and public communications related to Corps of Engineers work at a site referred to in the hearing as ‘‘Arco/Arca Butler.’’ Multiple lawmakers urged MEMA to coordinate with the Department of Environmental Quality and the Corps on a public-message or roundtable to reduce public fear and clarify responsibilities; McCraney committed to follow up.

What the hearing produced and next steps

McCraney did not present a formal motion or obtain a vote during the hearing. He asked the panel to consider the transfer of the Rolling Fork housing funds into mitigation, to consider replenishing the disaster trust fund, and to approve equipment funding in the agency’s budget request. He also said MEMA staff would produce additional rolled-up figures by Friday per requests from legislators.

Several legislators pressed for guardrails on ONA eligibility and for better data-streaming from FEMA so state staff can confirm registrants were in storm tracks. McCraney said it can take several months to obtain detailed registrant data from FEMA and that MEMA uses storm-track overlays and address data to exclude out-of-path claims where appropriate.

McCraney closed the presentation urging investment in mitigation to reduce future costs and said, ‘‘I like to have 5 Mississippi boats lined up against the Corps of Engineers,’’ a remark made in the hearing context while discussing coordination with federal agencies.

No formal votes were recorded during the hearing; the proposals described will require separate legislative action or appropriation changes to take effect.