Mr. Speaker, I thank the gentleman for yielding time to me. I appreciate the gentleman's courtesy in permitting me to speak on this bill. Mr. Speaker, I commend the Chair and ranking member for moving this forward expeditiously. It is…
Mr. Speaker, I thank the gentleman for yielding time to me. I appreciate the gentleman's courtesy in permitting me to speak on this bill.
Mr. Speaker, I commend the Chair and ranking member for moving this forward expeditiously. It is important. I appreciate their commitment to look at the long term.
My colleague the gentleman from Nebraska (Mr. Bereuter) has been working on this for some time. It is a critical program for the lives and livelihood of many people around the country. It is a good example of how the Federal Government can step in and help work with local communities to lessen the impact that disasters have on people's lives and property.
However, as we look at this reauthorization we must indeed look at the big picture, because the Federal Government can do a much better job of providing the right signals and incentives for individuals, communities, and State governments to act responsibly. Unfortunately, some aspects of our disaster policy on the national level are themselves a disaster, including a dominant structural model for flood plain and flood management that has a serious number of problems.
Despite spending over $40 billion in the last 40 years on flood program management to reduce flooding, we have actually seen flood losses increase to
an average of $8 billion a year, six times what it was before the program was enacted 40 years ago. Forty percent of the payments go to 2 percent of the property.
We have a serious problem of repetitive flood loss. I have often cited an example of one home in Houston, Texas, with an assessed value of less than $115,000 that has received over at least 16 losses totaling over $806,000. It is an example of a program that needs to be corrected.
Flood losses are only going to get more expensive as global warming leads to more extreme weather events. The world's largest banks and insurers are already estimating that the cost of financial losses from events such as this summer's devastating floods in Central Europe and in India will be $150 billion over the next 10 years.
Our national flood policy often encourages development and rebuilding in places with a predictably high risk of future catastrophic loss. It also fosters an unsustainable reliance on the Federal Government. That is why the Bush administration in one of their first actions upon taking office identified flood insurance reform as one of the areas that could both help the environment and save money. It is an area of reform that was identified by the Clinton administration and James Lee Witt, a FEMA director that we all worked with.
I am pleased to join with my colleague, the gentleman from Nebraska (Mr. Bereuter), in co-sponsoring the Two Flood and You Are Out of the Taxpayer Pocket Act that would reauthorize the program until the year 2007. I will not go into the details other than to say it is the sort of heavy lifting in terms of legislation that will actually unite the administration, environmentalists, people who are fiscally conservative, people who care about being able to make sure that we do not encourage people to put themselves in harm's way.
I appreciate speaking in support of this bill today and look forward with working with people in this Chamber on important reform legislation that can be a source of pride for this Congress.
Mr. Speaker, I appreciate the gentleman's courtesy.