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Senators press finance on $883,000 cash shortfall, FEMA reimbursements and community disaster loan options
Summary
Committee heard that the central government's operating account was roughly $883,000 negative and that FEMA project worksheets and audit completion will determine access to reimbursements; officials said a Community Disaster Loan (CDL) activation could take ~90 days and might yield up to $5 million but would require legislative instruments for full faith-and-credit support.
Senators on the Senate Fiscal Affairs Committee pressed Department of Finance officials May 14 about immediate cash needs after recent super typhoons and the mechanics of FEMA reimbursements and short‑term borrowing.
Finance reported an operating account deficit of roughly $883,000 for disaster‑related expenditures and obligations. "Right now that account ' I checked earlier before we came over and it's already at negative 900,000," an official told the committee. Finance staff said that labor costs for disaster response were still being compiled and therefore not yet included in that figure.
Officials described the federal process: damage assessments on the ground are ongoing, and FEMA project worksheets (starting with Category B operations) must be written and approved to obligate federal public assistance. The administration has shared community disaster loan documentation with the Governor's office to request Region IX activation. "That process would take approximately 90 days," the special assistant said, and officials warned that CDL proceeds typically cannot be used for certain infrastructure matching but can be applied to personnel and government operations.
Committee members asked whether outstanding audits (FY2023) could block loan or grant applications. Finance said auditors were severely impacted by the storm but were targeting completion of FY2023 audit work by the end of June; whether FEMA or other federal reviewers will accept the resulting materials remains to be seen.
Members also discussed prior borrowing mechanisms (MPT/MPLT) and how reimbursements are applied: administration staff explained that reimbursements received after disaster response are normally applied against appropriated expenditures (payroll, vendor invoices) rather than treated as new, discretionary revenue requiring separate appropriation.
The committee requested regular updates on cash position, the status of project worksheets and the audit timeline. Finance agreed to return with more precise labor and vendor cost figures and recommended a subsequent briefing with the Public Assistance Office and relevant vendors to clarify reimbursement timing.
