…establishes a flood mitigation program and a flood mitigation board to review proposed flood mitigation projects and authorize funding for approved projects. The bill also establishes two funding sources, a Flood Mitigation Fund and a Sales Tax Increment Fund, to provide funding for flood mitigation projects. The Flood Mitigation Fund will consist of appropriations and other moneys. The Sales Tax increment Fund will receive deposits of increased sales tax revenues from impacted areas, as calculated by the Department of Revenue. The Flood Mitigation Board will determine the funding source and amounts allocated to applicants for approved projects.
According to media reports, the proposal has not been without controversy. Iowans are concerned about accountability, which the review panel is intended to address:
The measure would create a Flood Mitigation Program administered by a state board. The board could allow communities to retain growth in sales tax revenues over a period of time or provide state aid from a state flood fund for communities without sales tax growth. The program requires a 50 percent local match.
As much as $30 million a year could be diverted from general fund sales tax revenues with as much as $15 million available for any one project.
Hopefully, the investment today will help people tomorrow.
(Cross-posted from All-Hazard Mitigation blog)