A literal rainy day fund is a good idea

The proposal by my state Sen. Craig Hickman (D-Winthrop) to create a new fund to help small businesses harmed by the recent spate of winter storms is a good one.

This is especially important because many of these businesses did not have flood insurance or were unsure exactly what their coverage was. In fact, this is such a good idea that it’s hard to believe such a program doesn’t already exist. That need is a classic example of the government’s lack of advance planning.

Although it is technically a new program, it is also a great use of extra budget, as it aims to address individual events, or rather a series of events. It’s great that this type of common-sense program can receive unanimous bipartisan support in committee, be enacted quickly, and be implemented before the end of the current budget year. This is an example of basic governance that often seems impossible even in Augusta these days, let alone Washington, DC.

In fact, if enacted as written, this system could simply be a starting point. One is that he does not have to provide the funds on a one-time basis. You need to find a permanent source of income. Now, the danger in extending this idea is that we can get bogged down in disagreements about two different but equally conflicting topics: taxes and climate change. That is a possibility, but it could be easily avoided if both sides act rationally and continue to cooperate.

On the funding side, the Small Business Weather Emergency Relief Fund simply needs to be included in the list of funds that can be transferred through the cascading process. This process is triggered whenever there is a budget surplus and sends the surplus funds to various programs in a specific order. For example, Congress recently added housing assistance to the list. Whatever your opinion on climate change, it’s hard to argue that a permanent national disaster relief fund isn’t equally important. This would reduce the state’s reliance on federal disaster relief, which can fall victim to partisan politics, and allow it to respond more quickly to natural disasters. It will be a literal rainy day fund, not a figurative financial one. The only argument against this funding mechanism is that it could siphon money from other programs, which is why the priority list is part of the process.

If funding is available and proves effective, another way the program could be expanded in the future is to cover more than just small businesses. Call it the “Severe Weather Emergency Relief Fund.”

Many homeowners are also facing costly challenges from severe weather, not just the recent severe storms. Snowstorms, lightning strikes, extreme cold and heat can all affect homeowners as well as small businesses. It’s important to build a broader program so that it doesn’t deter someone from purchasing insurance on their own or use it to respond to individual, isolated incidents, but it certainly can be done. is. Similar to federal disaster relief, use of this program can be tied to a disaster declaration by the governor, and the application process and specific criteria are defined by law. Establishing this type of program permanently in advance of the next natural disaster is a much better approach than creating new programs in response, as is currently the case.

Another related issue that needs to be addressed is the cost that utilities incur in responding to storms. While businesses themselves should not be forced to pay for the entire cost of storm preparedness, it is also unfair for consumers to raise prices to pay for it. Neither the company nor the customer is responsible for inclement weather. Ultimately, everyone involved will have to pay some cost, but it won’t be punitive for anyone.

To that end, Congress should consider creating a new fund to reduce the impact of rate increases after natural disasters, as well as funding it from budget surpluses when available. It is long past time for Maine to be more proactive and autonomous in its disaster relief planning. Senator Hickman’s bill is a great start. I hope this is not a one-time fix, but a basis for rethinking your entire approach.

Jim Reverend, a conservative activist from Gardiner, worked for Sen. Susan Collins. He can be contacted at:
jwfossel@gmail.com
twitter: @jimfossel

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