Hurricane Irene could cost US state and local governments billions of dollars in damages, but funds from the federal government might ultimately cover much of this expense.
It is too early to estimate the cost of the storm, but New Jersey Governor Chris Christie said New Jersey alone may have suffered tens of billions of dollars in damage.
The timing is terrible for municipalities as they dig their way out of their bleakest economic period in decades after the financial crisis and recession sank budgets and forced widespread cuts in expense and increased taxes.
But Maryland said the federal government will reimburse the state for 75 per cent of what it spends on emergency preparedness and the immediate response to the storm in a trend that may be replicated across the region.
Just how well the United States can handle the unexpected expense is a different question as it battles record budget deficits and growing fears of a double dip recession.
New York Governor Andrew Cuomo said the cost to the state would be high, but mitigated by a federal disaster relief declaration.
Cuomo told ABC News said the bill would come to millions of dollars. “It’s my guess costs will be in the tens of millions,” he said.
