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David Williams, president of the Taxpayers Protection Alliance, on FEMA running out of funding, and the potential for a bailout from taxpayers in the ...
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Agency says it only has 850 million dollars left in the banking cash that's it and they expect to burn through that by the end of this month.
Meanwhile flood related claims are stacking up and we are looking at losses of six to twelve billion dollars.
This all coming as President Obama visits damage here in New York to see the recovery efforts with me now is David Williams.
Of the tax -- protection alliance.
David thanks so much for coming on the show.
What do you make of all of this what happens -- -- runs out of money.
Well -- -- runs out of money.
I mean don't don't worry that people are gonna be helped his what's gonna happen is congress is -- -- step then they're gonna make sure that -- gets the money.
But then what happens after that.
It is what will we really don't know is how does seem to pay that money back to the federal government -- really it's only borrowing the money.
That's what they did -- Katrina they borrow up to twenty billion dollars they blew through about eighteen billion of that and Katrina so they have about three billion laughter two point nine billion left.
But that's gonna go so quickly in new York -- New Jersey yeah boy were were really running up to a deadline here.
You know what I'm wondering I hear them saying that they're gonna run out of money I mean does it make a difference it's all your money -- my money in our audiences money anyway you slice it it's taxpayer dollars -- what.
What difference does that make and it's coming from congress or FEMA it must matter.
Well it does matter because if you look at the deficit you look at the debt.
It at all matters that really what FEMA doing is all the good microcosm of what the federal government does when it doesn't have enough money.
It is -- goes into more deficit spending and cut that's what -- is doing they don't have the money.
And they're not going to be a lot of payback eighteen billion they already know so it's it's the I was kind of legible right commented it's all related same.
But congress needs to address this you know we can't keep on doing this would kick people bailing out -- and say oh everything's gonna be firewood this -- -- -- -- hole here and there we don't.
-- people who need help I don't know are are they out of money because there -- so many people veteran disastrous situations that need help.
Or they out of money is there really got -- managing it.
Well there's two peas and then he and you mentioned in both here the first is that people.
-- house is on flood prone areas on beaches next to rivers.
And they only pay a couple hundred dollars a year for flood insurance the taxpayer bails them out I we -- literally and figuratively.
Out of these floods because they -- let's say 300 dollars a year.
But they get bailed out the tune of tens of thousands of dollars by the federal government when a disaster strike said.
You know it it's because summit an -- when you talk about FEMA and you say well we look at how we're gonna do this.
One no we're taxpayers we should look at this and -- really should have a critical eye on this.
Knowing it makes sense -- -- when an area.
Does it make sense to encourage people to go back and rebuild homes.
-- -- In places that have been storm ravaged earthquake ravaged in the past.
I mean eat meat you want you want to compensate the people that are hurting right now but you don't wanna ensure future property.
On this land right what.
And we know -- the flood zones are so this is not a big mystery we know that -- is that rivers these are flood prone prone areas and to rebuild but also.
If you're gonna rebuild.
You can't pay 300 dollars a year on flood insurance you got to pay thousands of dollars because.
This is what the real cost is so there have to be some sort of market force here to say that really.
300 dollars for flood insurance along the beach there's got to be more common sense and the government.
So he's reasonable I mean and we went back and we -- it got the tax -- we're not gonna ensure you to go back in.
And build on the hills of Malibu where you -- crash down you know to the beach or or to build on fault lines in California -- to build near flood areas or her -- Areas in Florida we're not gonna ensure you but you can build -- you want in either be -- insured or get very expensive private insurance is a little because I've said that before people say.
That'll never happen there's no market for that -- that's not fair.
When you say what have to be it has to be realistic because we have to do this and I will guarantee you that if we do that.
People will think twice -- -- -- second.
I'm market to get this big Fred -- not any more so maybe I'm not gonna build on the beach area near -- -- -- -- rivers I think that.
People think twice and it's not gonna stop it's not gonna stop rebuilding it's not gonna stop stupid decisions.
But I do think people think twice about end yeah that's probably the first step here.
And we're not talking about the people who are devastated who have lost everything right now we're talking about what is the smartest plan going forward.
So that we avoid this kind of destruction and taxpayer costs in the future thanks so much for coming on insisting that -- -- And the devastation that we're talking that just continues to unfold in the wake of the storm are very -- Elizabeth MacDonald.
