City will face a budget gap after FEMA funds and insurance proceeds are drawn down, mayor says.
New York City Mayor Michael Bloomberg on Monday released his request for federal aid for recovery from Hurricane Sandy, writing in a letter to the New York congressional delegation that public and private losses to his city will total about $19 billion.
“After subtracting private insurance of $3.8 billion and [Federal Emergency Management Agency] reimbursement of $5.4 billion, the net cost to repair the damage caused by Hurricane Sandy will be approximately $9.8 billion,” writes the mayor.
“Therefore I am requesting your assistance in securing supplemental and expedited funding for the City of New York,” said Bloomberg. “Federal legislative action will be required to address the budget gap that will result once available FEMA funds and insurance proceeds are drawn down.”
Bloomberg’s letter is accompanied with a chart breaking down the estimated needs; he notes that some of the expenses that have or will be incurred are ineligible under FEMA such as hazard mitigation, long-term housing solutions, and shoreline restoration and protection.