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Federal Aid for South Dakota Victims of Tornadoes and Flooding

July 11th, 2007 Posted by Amelia

The U.S. Department of Labor recently announced a National Emergency Grant of $660,000 to assist unemployed workers in South Dakota in recovery from recent tornadoes and flooding. This is just the latest in a series of recovery efforts by the U.S. Department of Labor, FEMA, and the IRS.

Under the current grant, the funds will be used to create 50 new jobs to assist in cleanup and recovery efforts in those areas most severely affected by storms, tornadoes and flooding. Residents who are unemployed due to the flooding, or who have been unemployed long-term, will receive preference for the new jobs.

The grant, awarded to the South Dakota Department of Labor, will also be used for temporary employment on projects that provide food, clothing, shelter and other supportive services for disaster victims. Workers eligible to apply for these jobs include those dislocated as a result of the storms, tornadoes and flooding, and other dislocated workers, as well as the long-term unemployed.

“Several counties in South Dakota were affected by these storms and need help to clean up and repair damage,” said Assistant Secretary of Labor for Employment and Training Emily Stover DeRocco. “This grant will offer workers who lost their jobs an opportunity to lend assistance to damaged areas while earning a steady paycheck.”

On May 4 and 5, 2007, a major tornado outbreak in parts of Oklahoma, Colorado, Kansas and South Dakota spawned 83 reported twisters. Damage was exacerbated by severe storms and flooding over the next few days.

On May 22 2007, FEMA –the Federal Emergency Management Agency — declared the following South Dakota counties eligible for public assistance: Aurora, Beadle, Bon Homme, Brown, Brule, Buffalo, Clark, Day, Hanson, Hutchinson, Jackson, Jerauld, Kingsbury, Lake, Marshall, McCook, Miner, Roberts, Sanborn, Spink, Tripp and Yankton. Also declared eligible were the Pine Ridge Indian Reservation, Crow Creek Indian Reservation and those portions of the Sisseton Wahpeton Indian Oyate which lie within the designated counties.

State and federal officials have approved almost $11 million in disaster grants and low-interest loans for South Dakota homeowners, renters and business owners who sustained damages resulting from the severe storms, tornadoes and flooding.In just a few weeks, more than 3,546 South Dakotans applied for disaster assistance by calling the Federal Emergency Management Agency (FEMA). The agency reacted quickly, with more than $4.7 million in grants to 2,234 households approved for temporary home repairs and alternate housing. So far, individuals and families have received more than $322,000 in assistance for other needs from FEMA. This includes funds for medical expenses, transportation, and reimbursement for personal property not covered by insurance or other aid programs. Of these funds, FEMA will underwrite 75% while the state will pay the remaining 25%.

A total of 266 low-interest disaster loans totaling $5.68 million have already been approved by the U.S. Small Business Administration (SBA) to help businesses and non-profits of all sizes. The funds will be used for repairs or rebuilding efforts, and to cover the cost of replacing lost or destroyed property. These disaster funds are in addition to any payments by insurance companies, to compensate for losses not covered by other sources.

By late May, the state of South Dakota had provided $578,000 in emergency disaster aid to nearly 600 people in the form of vouchers for food and clothing, and help with prescription drugs. A total of 3,628 South Dakotans visited Disaster Recovery Centers (DRCs) in the days after the disaster. The centers provide information about various disaster recovery programs including state-based services, individual and household assistance, disaster unemployment benefits, SBA low-interest disaster loans, and guidance on rebuilding wisely.

In another move to aid the South Dakota disaster victims, the Internal Revenue Service announced tax relief for South Dakota taxpayers in the Presidential Disaster Area. Under a new procedure, the IRS computer system now automatically identifies taxpayers in the affected area and applies automatic filing and payment relief. Taxpayers no longer need to identify themselves by noting their status on the tax return, or by using the disaster designation in tax software.
Deadlines for affected taxpayers to file returns, pay taxes and perform other time-sensitive acts falling between May 3, 2007 and July 23, 2007 have been postponed to July 23, 2007.

Any affected taxpayer, who receives a penalty notice from the IRS, should call the number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply.