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Will Hurricane Sandy Add to FEMA’s Financial Woes?

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  • Description

    FBN’s Gerri Willis on the FEMA’s financial problems.

  • Duration 2:54
  • Date

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This transcript is automatically generated

The important question what will damage be like and what will we see tomorrow morning when we walk outside our door well.

Expectations that the damages could reach five to twenty billion dollars Connecticut governor -- Malloy earlier today said don't worry.

-- -- -- -- -- -- -- -- -- -- -- -- -- Thank -- all -- -- all -- -- visited there and there is no limitation.

To our ability to spend money in preparation and on recovery.

No limitation to spend that sounds like a government official right.

Well the agency most responsible for responding to the emergency and getting us on the path to recovery.

He's in deep trouble FEMA the Federal Emergency Management Agency which houses the National Flood Insurance Program.

He is too mired in financial and management problems to the money first -- that typically limps along the thirty year waiting -- correct at congressional handout.

Fortunately they receive one this fall which should keep the agency running through fiscal 2017 but look that doesn't salt.

All of their money issues not by -- shot after hurricanes Katrina and Rita the fun with eighteen billion dollars in the -- still has that debt.

Then there is the issue of management.

The Government Accountability Office -- a stinging criticism of the agency just last year describing FEMA has actual wearily unsound.

It systems antiquated.

Running -- pennant paper imagine that rather than computers.

Departments at local state national level as a result have a difficult time communicating with FEMA.

According to that report because of many of famous processes were manual.

FEMA culture had become dependent on individual people with staff relying on personal relationships to accomplish to -- Including concluded that's from the GAO FEMA needs a total revamp.

Maybe that's why -- improperly paid nearly a hundred million dollars to hurricane victims after Katrina and Rita and got -- between 2005 and 2010.

Just earlier this month.

The agency waived its demands for repayment.

Altogether 371.

Million was paid out in -- And -- a reminder to everybody out there that's our money fellow taxpayers.

Remember Katrina trailers.

145000.

Of them deemed unsafe because they at high levels of formaldehyde we pay for that and they were used anyway by storm victims.

If you're thinking -- -- having problems because it's woefully understaffed not true the agency is grown like -- -- in the wake of Katrina.

The funny extension passed by congress in the in this fall -- very little of these problems.

It made an attempt to stop insuring properties that are repeatedly flooded.

But addressing the -- -- issues.

Not a chance another can kick down the road at a time we can least afford it.

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