Hurricane Katrina Weathering the Crisis in Mississippi Greg Hardy, Director Mississippi Tort Claims September 15, 2006

Hurricane Katrina made landfall on August 29, 2005, on the Mississippi/Louisiana line, with maximum sustained winds of 140 mph. Hurricane-force winds extended outward up to 105 miles from the center of the storm. Coastal storm surge flooding of 20 to 30 feet above normal tide levels, along with large and dangerous battering waves, occurred near and to the east of where the center of the storm made landfall. Widespread damage occurred, including beach erosion and damage and/or destruction of homes and infrastructure.

3 Katrina Path Hattiesburg - 70 miles inland at 1:00 pm CST Maximum winds are down to mph, with gusts of mph Jackson miles inland at 3:00 pm CST Maximum winds are down to mph, with gusts of mph Tupelo, MS miles inland 4:00 pm CST Maximum winds are down to 50 mph, with higher gusts Eventually all 82 counties were included in the declaration for either Individual or Public Assistance programs from FEMA

4 Katrina As the storm abated Monday night, state law enforcement officers and several hundred Mississippi National Guard troops were led by Mississippi Department of Transportation clean-up and repair crews who cut their way into Gulfport from Hattiesburg to assist with search and rescue, security and opening roads The immense power and size of the hurricane had overwhelmed the critical infrastructure of the entire Coast –The electric power system had been crushed –The telecommunications system was smashed –Roads and streets were completely out of service –There was no running water

5 Katrina This resulted in no air conditioning, traffic signals or water pumping capacity –To make up for lack of electric power, generators were keeping critical facilities open, including hospitals and healthcare institutions, emergency operation centers, police and fire stations, military bases and a myriad of businesses - some of them essential suppliers Fuel was a critical commodity, but in short supply –Offshore production in the Gulf area and refining capacity were curtailed or put out of commission –As the supply tanks at Collins and other storage depots started coming back into operation, more electric power was restored –Federal agencies provided fuel, such as the Coast Guard delivering to hospitals across southeast Mississippi

6 Hurricane Andrew vs. Katrina August 24, 1992, Hurricane Andrew slammed into South Florida 40 Deaths $21 billion in insured losses $281 million in Individual Assistance $1.22 Billion in Public Assistance $42.6 million in Hazard Mitigation August 29, 2005, Hurricane Katrina slammed into Mississippi Gulf Coast 231 deaths $120 billion in insured losses (estimated) $2.7 billion in Individual Assistance $1.11 Billion in Public Assistance $419.2 million in Hazard Mitigation

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8 Damages More than 68,700 homes destroyed –65,200 homes with major damage –100,300 homes with minor damage Nearly 274,425 individuals and families received housing assistance Some 17,000 business were lost Some 55,000 houses and 20,000 businesses suffered flood and wind damage

9 Damages Public schools in four (4) coastal counties suffered $700 million in damage –80,000 students were displaced Fourteen (14) public schools facilities were totally destroyed Coastal cities such as Waveland, Pass Christian, and Bay St. Louis were as much as 70 percent destroyed.

10 Damage Assessments for State Owned Facilities Damages (Millions) Number of Buildings Damaged Replacement Value Institutions of Higher Learning$107434$5.5 Billion Community & Junior Colleges$69289$1.4 Billion Mental Health$21140$693 Million Youth Services, Corrections, Public Safety, Agriculture, & DFA $15106$1.4 Billion Misc. Institutions & Agencies$24830$404 Million Wildlife, Fisheries, & Parks$6090$100 Million Total$5201,089 $9.5 Billion

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12 Where We Are Today Over 47 million cubic tons or 99.1 of land based debris has been removed Housing –Over 60,000 “FEMA Trailers” were brought into Mississippi –About 101,000 Mississippians are still living in them –Reconstruction plans include the construction of 60,000 single family dwellings in five (5) years.

13 Where We Are Today Economic Development –The State Legislature allowed casinos to rebuild 800 feet inland –Four (4) casinos have reopened –All casinos located on the Coast prior to Katrina plan to rebuild and reopen by January 1, 2008 Education –Over 90% of the 80,000 displaced school children have returned to their home districts

14 Where We Are Today Congress appropriated $3 billion in grants to assist homeowners who lived outside the flood zone but sustained flood damage –Approximately 17,000 homeowners have applied for the $150,000 in grants Over $600 million in contracts have been awarded to reconstruct the bridges over Biloxi Bay and the Bay of St. Louis

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17 Stafford Act By this Act, Congress provides an orderly and continuing means of assistance by the Federal Government to State and local governments in carrying out their responsibilities to alleviate the suffering and damage which result from disasters

18 Stafford Act required that any public assistance funding issued for uninsured property would have to be repaid in future years –Also, if there was a future disaster, there would be no public assistance funding on the same building Prior to Katrina, Mississippi had never insured its property except for: –Some universities –Some flood insurance for buildings located in flood zones Mississippi would have to purchase property insurance for its buildings

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20 Insurance & the Legislature In January 2006, Willis was chosen as the State’s insurance broker The State secured $500 million of coverage The premium for this coverage is anticipated to cost the State approximately $10 million

21 “Last year’s gigantic catastrophe, with all its destruction, gave birth to a renaissance in Mississippi that will surely result in rebuilding our state bigger and better than ever before, but I believe it will also spread prosperity and dignity across more of our citizens than ever before. I ask you to embrace that vision.” -Governor Haley Barbour State of the State Address January 2006