Governor Doyle Requests Additional Flood Relief

For Immediate Release: September 17, 2008
Contact: Tony Hozeny, Department of Commerce, 608-267-9661
Carla Vigue, Office of the Governor, 608-261-2162

Wisconsin's Unmet Need Tops $1.2 Billion

MADISON - Governor Jim Doyle today formally requested that the U.S. Department of Housing and Urban Development (HUD) allocate additional funding to Wisconsin to help the state recover from the worst flooding in the state's history. Initial unmet need estimates from flooded counties for housing, business and infrastructure exceed $1.22 billion, not including agricultural losses.

"Wisconsin's people and communities have urgent needs in the wake of the worst flooding in our state's history," Governor Doyle said. "While the people of our state have always taken on our challenges with hard work and optimism, we are facing $1.22 billion in unmet housing, business and infrastructure needs. Without additional assistance, Wisconsin's citizens and communities will struggle to recover and restore the viability of the impacted communities."

The $1.22 billion in unmet needs includes $923 million for housing, $255 million for business damages, and $40 million for infrastructure needs. The Governor had previously advocated for additional resources for Wisconsin in a telephone conversation with U.S. Department of Housing and Urban Development Secretary Steve Preston.

HUD is currently in the process of allocating $200 million to the Midwest for disaster relief. Its initial allocation was $100 million, of which Wisconsin received 5 percent, or $5 million.

In his letter, the Governor noted that the flood caused 31 counties to be declared disaster areas. Examples of the flood's devastating effects include:

• The unemployment rate in declared counties has risen from 4.0% in May to 4.6% in July 2008. Initial claims for unemployment insurance in Wisconsin increased by over 31,500 from May through July 2008, a 58% jump.
• The City of Jefferson has seen a permanent loss of 200 jobs from anchor employer Tyson Foods, which was forced to cut production due to over $7 million in flood damages.
• Wisconsin's premier tourism industry was hard-hit by the flooding. Lake Delton, a popular tourist destination, alone estimates lost business totaling $20 million after a breached embankment drained the lake.
• Infrastructure damages were widespread causing threats to health and safety. For example, the City of Madison was forced to discharge 1.5 million gallons of raw sewage into its lakes.

To view the letter to U.S. Department of Housing and Urban Development Secretary Steve Preston, go to: http://www.wisgov.state.wi.us/docview.asp?docid=14815&locid=19.

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