Wildfire recovery funds flowing at state and federal levels

Aug. 22—The cost of fighting wildfires is going up — and that can cause budgeting problems for states that do not financially prepare for them, policy experts told lawmakers.

Analysts from the nonprofit Pew Charitable Trusts told members of the Legislative Finance Committee the cost of mitigating, suppressing and dealing with the aftereffects of wildfires is rising significantly on the state and federal level.

"We are just seeing budgets stressed all over the country," Pew analyst Peter Muller said during a presentation at Tuesday committee meeting in Las Vegas, N.M.

While data on individual state costs of firefighting efforts around the country remains difficult to get in some cases, Pew Charitable Trusts analysts talked to officials in a half-dozen states, including Alaska, California and Texas, he said.

They also looked at federal data that showed the U.S. Forest Service's budget for dealing with wildfires rose from $2 billion in 2011 to close to $5 billion in 2020.

In Washington state alone, $24 million was spent on wildfire suppression by the state between 2010 and 2014 and more than triple that — $83 million — between 2015 and 2019, Muller said.

Part of the reason for the increased costs, he said, is because wildfires are getting larger. According to the Pew report, between 2017 and 2021, the average annual acreage burned by wildfires was 68% higher than from 1983 to 2016.

The report said many states implement "backwards-looking estimates to plan initial wildfire appropriations that fall short." The approach can create problems because it removes the cost of wildfires from the regular budgeting process, the report said.

Muller urged lawmakers to include firefighting money in state budgets and keep track of firefighting and recovery costs going forward. State and federal authorities present for the hearing told Sen. George Muñoz, D-Gallup, chair of the committee, they are monitoring recovery aid costs tied to the catastrophic 2022 Hermits Peak/Calf Canyon Fire.

Muller also said New Mexico could make such spending transparent, following California's lead in building an online portal of fire-related expenses that lets people "see where the money is being put to use, which areas are protected, which need investment."

His comments came as the committee received an update from both state and federal officials about recovery efforts in the wake of the Hermits Peak/Calf Canyon Fire.

Federal officials overseeing recovery efforts for Northern New Mexico residents affected by the historic fire say they expect to pay out $50 million by the end of October, $100 million by January 2024 and about $1 billion by January 2025.

To date, the Federal Emergency Management Agency, charged with administrating nearly $4 billion in federal aid for fire recovery efforts, has received 1,870 claims of loss and has paid out about $27 million, Angela Gladwell, FEMA's New Mexico claims office director, told committee members.

"Our goal is to get money in their hands as quickly as possible," she said.

Meanwhile, about $53.3 million of $100 million in state loan funding has been allocated to the two counties — Mora and San Miguel — hit hardest by the 341,000-acre fire, the largest in New Mexico's history.

The state money comes in the form of no-interest loans signed into law by Gov. Michelle Lujan Grisham earlier this year in an effort to aid local governments as they await FEMA payouts.

Muller said he is curious to see how the funding plan works out in the end.

"Having money available to let those projects go forward that can then be reimbursed by federal reimbursements is a really interesting idea," he said, adding it is a unique approach to the problem that may provide lessons for other states contending with wildfires.

Several lawmakers said they had heard from some fire survivors who say they are having trouble connecting with federal and state agencies for help.

David Dye, secretary of the state Department of Homeland Security and Emergency Management, which is helping coordinate state relief efforts related to the fire, said when he hears such complaints "that really troubles us ... there are hundreds of people dedicated to helping those who need help."

He said sometimes people may not know where to reach out to and urged lawmakers to have those residents call his agency.

The wildfire burned in the mountains northwest of Las Vegas, consuming homes, businesses and livelihoods. It was the result of federally prescribed burns gone awry.