NC Senate Slams $175 Million Hole In Disaster Recovery Budget As A ‘Financial Catastrophe’

By Brianna Kraemer
Carolina Journal

• Because of the General Assembly’s large savings reserves, solutions do exist for what Berger calls Cooper’s “mismanagement and financial carelessness.”

The state agency tasked with assisting victims of natural disasters is in need of an additional $175 million to continue its operations, the North Carolina General Assembly revealed in a scathing press release on Wednesday afternoon, calling the request a “financial catastrophe.”

The North Carolina Office of Recovery and Resiliency (NCORR) requires an additional 27% of its budget to continue operating, something Senate leaders recently learned ahead of returning to Raleigh to pass additional relief legislation on Thursday.

“This financial catastrophe is a direct result of top-down mismanagement from the agency,” a press release states. “Now, with only a few days’ notice, Gov. Cooper is asking the General Assembly for $175 million to clean up his mess.”

The operation issues date back to Hurricane Florence in 2017. North Carolinians impacted by Hurricane Florence are still without permanent housing, the press release reads, forcing victims to wait years to return to a permanent home. They say the blame lays squarely at the feet of Gov. Cooper, who controls the NCORR. Cooper simultaneously called on the legislature to deliver a $4 billion relief package on Wednesday for hurricane victims in western North Carolina. 

SEE ALSO: Cooper urges state legislature for nearly $4 billion in initial funding to rebuild after Helene

Senate Leader Phil Berger, R-Rockingham, accused NCORR leaders of repeatedly trying to cover up at the expense of hurricane victims. 

“Their attempts to hide problems rather than own up to their incompetence has resulted in a continuing disaster for hurricane victims,” said Berger. “Now, Gov. Cooper is asking for an additional $175 million with little to no time to evaluate the request. It’s past time for Gov. Cooper to take accountability for his six years of mismanagement and financial carelessness. I look forward to GovOps getting to the bottom of this astounding failure.”

According to Joseph Harris, fiscal policy analyst at the John Locke Foundation, the NCORR was created in 2018 primarily to oversee the distribution of $779.1 million in federal recovery funds, which were allocated to the state in response to Hurricanes Matthew and Florence.

 “The NCORR apportioned most of the federal funds to repair and replace damaged homes. However, as of October 2024, approximately 1,600 hurricane victims are still displaced from their homes,” explained Harris. “Making matters worse, the agency faces a $175 million budget deficit. Republicans in the General Assembly have attributed the financial troubles to poor management, while agency representatives have blamed fluctuating construction costs.”

However, because of the General Assembly’s large savings reserves, solutions do exist for what Berger calls Cooper’s “mismanagement and financial carelessness.”

“Fortunately, over the last several years, the state legislature has set aside a substantial amount of funds in the Savings and Disaster Relief Reserves that can cover for the NCORR’s financial mistakes,” Harris added.

Next month, the Joint Legislative Commission on Governmental Operations Hurricane Response and Recovery Subcommittee will meet to analyze the mismanagement and why this information was hidden from the legislature.