Levee failure California Delta 2004 Photo: California Dept of Water Resources
A good friend offered this comment on my recent blog on San Francisco's push to mandate mitigation:
NY did not mandate mitigation & Congress just rewarded them with BILLIONS. Not fiscally prudent to mandate/mitigate.
His point is well-taken and highlights one of the major problems with mitigation - it's ultimately about money (well, what isn't?). Our programs provide very limited funding for pre-disaster mitigation - much of our funding is provided after the fact which limits the benefits from mitigation. From one prespective it would seem fiscally prudent to wait to fund mitigation until you can use Federal dollars instead of local tax dollars.
However, such thinking ignores the opportunity cost of waiting until after a disaster to take action to reduce your losses. A 2005 study by the Multi-hazard Mitigation Council of the National Institute of Building Sciences, Natural Hazard Mitigation Saves: An Independent Study to Assess the Future Savings from Mitigation Activities, found that ever dollar invested in mitigation saves society $4. The study also found that every Federal dollar invested in FEMA mitigation grants saved $3.65. This changes the cost benefit analysis consderably.
However, no matter how logical the argument for pre-disaster mitigation, we are still faced with the attitude that deciding to spend a dollar now in times of tight budgets is reality - potential savings are theoretical and besides, we all know "that won't happen here!" It's this same thinking that has resisted mitigation efforts on the East Coast barrier islands or the levees in California. For some reason, it always seems easier to fund rebuilding after the fact than to fund pre-disaster mitigation.
So it may well be fiscally prudent to bet on surviving a disaster and getting the Feds to pay but I think it's a sucker's bet and extremely short-sighted. Even if you win, you lose.
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