OMB seeks disaster relief and fire suppression recapitalization; FEMA match uncertainty could raise state cost

OMB Director Lacey Sanders told the Senate Finance Committee the governor's supplemental includes fund capitalizations to address recent disasters and to prepare for seasonal fire activity.

On the Disaster Relief Fund, Sanders said the administration requested $40 million to cover October storm damage, repay short‑term borrowing (including a $10 million repayment to a Village Safe Water capital project) and to provide capacity for further disasters before the fiscal year closes. She described an underlying federal estimate of roughly $150 million for damage and said the administration has appealed to FEMA for a 90/10 cost‑share split rather than the standard 75/25.

"If the appeal is denied and we are back to the 75/25 split, the increase that would be needed from the disaster relief fund would increase," Sanders told the committee. The House version of HB 2 89, she said, includes a $35 million contingency for that possibility.

On fire response, Sanders described multiple earlier fire declarations and asked for supplemental funding to meet prior year obligations and to prepare for the impending spring fire season. In one slide she cited a $98.7 million total for the Fire Suppression Fund; later in the walkthrough she referred to a combined $98.0 million total and said OMB would align records with the legislation.

Senators asked about remaining balances going into July 1. Sanders estimated roughly $4–$6 million might remain in the Disaster Relief Fund absent further disasters and about $7–$8 million budgeted for spring fire season operations, emphasizing the large uncertainty if more disasters arrive.

The committee did not vote; Sanders said OMB will follow up on exact totals and noted FEMA's decision on the cost‑share appeal will materially affect state liability.