PR Plan to Get of of Bankruptcy

Puerto Rico unveils plans to pull the island out of bankruptcy.

The federal control board that oversees Puerto Rico’s finances on Friday released a plan that would cut the island’s debt by more than 60% and rescue it from bankruptcy. The highly-anticipated restructuring plan comes three years after Congress created the federal oversight board, which allowed the territory to seek bankruptcy protection after years of facing its inability to pay its debt.

Puerto Rico was dragged into billions of dollars in public debt after decades of mismanagement, corruption and excessive borrowing to balance budgets. The government declared the debt unpayable in June 2015, and nearly two years later filed for the biggest municipal bankruptcy in US history.

BRIC Program Explained

BRIC: Expanding the Concepts of Federal Pre-Disaster Mitigation, by Elizabeth Zimmerman.

BRIC was created as Section 1234 of the Disaster Recovery Reform Act of 2018, which will replace the Pre-Disaster Mitigation Grant Program. BRIC is built upon lessons learned from that program. BRIC is funded based on a formula of obligations from the DRF from the previous year for all active disasters, not just one disaster. The percentage for BRIC is 6 percent and is available nationwide. Another difference is when the funding is available, BRIC is pre-disaster versus HMGP is post-disaster.

Re Recovery in the Bahamas

From CNA, this brief article: How the Bahamas Can Rebuild Quickly — Learning from Puerto Rico; by Delilah Barton.

Reading the news reports and seeing the images of the destruction in the Bahamas after Hurricane Dorian, I am reminded of our work in Puerto Rico and the U.S. Virgin Islands following Hurricane Maria. When an island community faces such catastrophic damage, efforts to help and rebuild are difficult and slow. The first impulse is to send immediate aid in the form of food, water and other lifesaving commodities. In the initial days that is essential, but what we have learned in Puerto Rico is that when the damage is on a catastrophic scale — as is now the case in the Bahamas — no government can meet the needs of an entire island’s population. The private sector is key to recovery.

In the aftermath of Hurricane Maria in 2017, the devastation in Puerto Rico was shocking and pleas for help were ubiquitous in news coverage. As a result, the U.S. government launched the largest food mission in U.S. history. The Federal Emergency Management Agency (FEMA) was able to provide more than 30 million meals to the Puerto Rican government during the first 6 months to an island of 3.4 million people. Despite the massive mission, the relief effort amounted to only nine meals per person over six months.

Yet at the same time, the island’s grocers were open within days of landfall and even reported the largest volume of food sales since 2009. In fact, within four weeks of landfall, over 90 percent of residents were fulfilling fundamental needs through the capacity of preexisting private sector supply chains or ad-hoc replacements. Not realizing that, FEMA continued to focus on delivering food and water, inadvertently blocking the efforts of the private sector to recover quickly by taking up limited trucking resources, vessel capacity and dock space at the ports needed for distribution.

Excellent Analysis of Recovery Issues

From TheHill: We cannot plan for disaster recovery based on unpredictable federal aid.

In the wake of Hurricane Dorian’s trail of destruction , affected communities in the United States and elsewhere are beginning the process of recovery while preparing for what may strike next.

Some of these communities may also have the secondary burden of preparing for an uncertain portfolio of federal assistance to support recovery. The kind of assistance that will be available — and when it will be available — will be influenced by public interest, political attention and legislative temperament. These are the hallmarks of our broken system of disaster recovery.