Beshear: State to pay over $14M in ice storm cleanup

Associated Press

FRANKFORT June 26, 2009 09:01 pm

— Kentucky will spend more than $14 million to cover what the federal government hasn’t paid to clean up remains of January’s ice storm along roadways in counties declared disaster areas, Gov. Steve Beshear said Friday.
He said the state will pick up the estimated $14.6 million tab to remove the debris, some of which has been on roadsides since January. The funds cover the difference between the cost of cleanup and what the Federal Emergency Management Agency is paying.
The devastating ice storm knocked down trees and power lines, resulting in about 769,000 power outages and at least 36 deaths. The storm resulted in a federal disaster declaration for 93 counties and knocked out most communication in western Kentucky.
State and federal officials have said the storm damages may top $185 million.
Seventy-five percent of the cleanup cost is covered by FEMA, with the remaining 25 percent borne by the state and local governments in the form of “matching funds.”
Affected cities and counties ordinarily would be liable for 13 percent of the costs — about $7.6 million so far — with the state paying the difference. Under Beshear’s directive, the state’s Transportation Cabinet will cover the entire 25 percent match by using a combination of Rural Secondary Emergency and Construction Contingency funds.
Madisonville Mayor Will Cox said his city will save about $212,000 in cleanup costs.
“This good news provides some much needed relief to the budgetary squeezes that we are all feeling,” Cox said.
Hopkins County Judge-Executive Donald Carroll said the cleanup will save his county nearly $4 million.
Lexington Mayor Jim Newberry, who oversees the state’s second-largest city, said the move will help balance the municipality’s budget.
“With ice storms and the recession, this has been a tough year for Kentucky’s local governments,” Newberry said.