The actual debt that the North Carolina Office of Recovery and Resiliency faces has unraveled into $319 million in a matter of days, according to the General Assembly, now standing more than 80% higher than what was first disclosed.
The disaster relief agency’s budget deficit was widely reported at $175 million until Monday when officials bumped that number to $221 million. During a committee meeting, now-vacated NCORR Director Laura Hogshead said the worst-case scenario would be $264 million.
“It depends on the assumptions that you use,” said Hogshead.
“Let’s assume I want to get this wrapped up and get to western North Carolina. Let’s use that assumption and get a number,” responded Rep. Jake Johnson, R-Henderson.
“The worst-case scenario would be the $264 Million number. That’s if there’s no attrition and if we are not able to use any other sources of funding,” she explained.
On Thursday, however, the House Oversight and Reform Committee released an analysis stating that NCORR’s deficit is $100 million more than Gov. Roy Cooper’s staff is acknowledging. A financial breakdown puts NCORR at a $319 million deficit, emphasizing the muddy financial situation of the agency started by Cooper for Hurricane Matthew and Florence aid.
“Leadership of the North Carolina Office of Recovery and Resiliency (NCORR) gave incomplete responses to pointed questions from members of the Joint Legislative Commission on Governmental Operations Subcommittee on Hurricane Response and Recovery during the November 18 hearing,” the General Assembly analysis reads.
The claims made to legislators are refuted by lawmakers with a clear breakdown of the numbers. The report notes that NCORR leaders did not include any contingency for higher construction costs for any of the estimated 1,400 homes still to be completed in their presented estimates.
“By 2021, NCORR budgeted $534 million of $982 million in federal funds for hurricanes Matthew and Florence to repair and rebuild homes in its Homeowner Recovery Program (HRP.) Since then, NCORR has transferred $148 million in additional funds from other purposes in that federal pot to bring the total for repairs and reconstruction to $683 million. The latest estimate for HRP is $980 million, which leaves, along with NCORR’s other spending on Matthew and Florence, a deficit of $319 million.”
You can’t make this stuff up…..#ncpol https://t.co/3rmjkjxwNr
— Rep. Jarrod Lowery (@The_Real_JML) November 21, 2024
The General Assembly appropriated $50 million to NCORR in a bill this week, bringing total funding to $80 million now.
While North Carolina’s executive branch continues to struggle in completing recovery projects from roughly seven years ago, Cooper is in Washington, DC, this week pushing for Hurricane Helene funding to assist different recovery efforts for the western part of the state. He is reportedly set to join leaders on Friday night for a dinner at the White House.