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Committee hears plan for $186 million in St. Louis tornado relief; FEMA reimbursement will cover most costs
Summary
The budget presentation included an $86 million supplemental (on top of $100 million previously appropriated) for St. Louis tornado recovery: demolition and debris removal estimated at $156 million, with FEMA expected to reimburse 75%. The state will often need to pay contractors upfront and seek reimbursement under updated FEMA rules.
JEFFERSON CITY — Committee members on Jan. 21 discussed a supplemental request tied to recovery from the May tornado in the St. Louis area, where officials estimate 800–1,000 eligible residential properties for demolition and debris removal.
State Budget Director Dan Hogg explained that an initial $100 million appropriation in a prior special session was a placeholder while FEMA completed damage estimates; FEMA now projects demolition and debris removal costs at about $156 million and will reimburse 75 percent. The supplemental adds roughly $86 million to bring the state’s total authority to $186 million for this project, of which $30 million of general revenue would meet state match requirements for federal disaster funds.
Hogg described a change in federal practice: FEMA is asking states to do procurement and pay costs up front in many projects and then seek reimbursement, rather than FEMA procuring directly. That shift requires the state to have appropriation authority to contract quickly and bear upfront cash flow risk.
The committee asked for details on local implementation. Members sought the identity and cost of any third‑party contractor used by the city to assemble applicant documentation; Hogg said the city contracted Tetra Tech to assist St. Louis with applications and right‑of‑entry work. Representatives also asked about how the state plans to secure rights‑of‑entry from property owners to allow deconstruction; Hogg said the city has recruited grassroots outreach and will use a "call your neighbor" campaign to locate displaced property owners.
Hogg said the state has already spent about $10 million on initial emergency actions; the $156 million demolition and debris removal estimate assumes 800–1,000 eligible properties with FEMA preliminarily estimating $156 million in costs and a 75 percent reimbursement rate.
What's next: staff said they will provide more detail on the city’s contract with third‑party vendors, the breakdown of the $10 million already spent, and any proposed governor’s amendment should FEMA approve additional projects for privately owned parcel debris removal.
