News Release - Color Coded Costs

News Release
Congressman Bob Etheridge
North Carolina

January 25, 2003

Contact: Sara Lang
Phone: (202) 225-4531

Color-Coded Costs

Legislation Would Reimburse States for Terror Alert Increases

WASHINGTON, DC – U.S. Rep. Bob Etheridge (D-Lillington), a member of the House Select Committee on Homeland Security, cosponsored legislation introduced today, H.R. 2570, The State Threat Alert Reimbursement Act, to reimburse state and local governments for expenses incurred during increased federal threat alerts.

“Every time the federal government increases our threat level, our state and local governments are forced to pick up the tab,” said Etheridge. “Our states, counties and towns, should not have to choose between building schools or providing security against foreign and domestic threats. The primary responsibility of the federal government is the protection of the American people, and passing the buck to state and local officials is no way to secure our country.”

Under H.R. 2570, Governors will be able to apply for reimbursement on behalf of state and local agencies for the costs incurred when the threat advisory level is increased to Code Orange and above. Reimbursement could be obtained for the costs associated with:

overtime pay and wages for personnel and extra hires;

deploying equipment necessary to address increased threat level (e.g.- hours of equipment operation, fuel costs, consumables, etc.);

monitoring, redirecting or constraining transportation systems;

closing public and government facilities;

assessing and modifying contingency procedures and emergency response plans; and direct losses (e.g. damaged or destroyed equipment, etc.

A recent study by the U.S. Conference of Mayors concluded that since September 11, 2001, cities nationwide, with populations between 30,000 and eight million, are spending more than $70 million per week on additional homeland security measures during each Code Orange alert declared by the Secretary of Homeland Security.

Last night the U.S. House of Representatives passed legislation providing $29.4 billion for the newly created U.S. Department of Homeland Security. Unfortunately, this legislation is only about 1.8% above the overall funding level provided to agencies and activities within the Department for fiscal year 2003. The Congressional Budget Office forecasts that prices will increase during the current fiscal year by 2.3%. As a result the bill actually provides funding for the coming year that in real dollar terms is about $150 million below current levels.

“Homeland security on the cheap, which is what this Congress and the Administration are proposing, is a system designed to fail, with potentially catastrophic results. The American people deserve more than empty rhetoric and hollow promises,” Etheridge concluded.