Taken from Carolina Public Press , May 2, 2025, by Sarah Michels
Wait for it: Badly needing Helene help, NC cities and towns try and hold on (-< link to full article)
"Western North Carolinians need bridges in more ways than one. Seven months after Tropical Storm Helene hit the region, many feel at a standstill. Federal money is in the pipeline, but may not arrive for months — or even years. State funding is coming in waves, but a focus on matching federal dollars leaves less for direct assistance. Philanthropy hasn’t been enough to fill the gap in Helene recovery.
Amidst this tense financial picture, local governments have two months to balance their budgets before June 30. The calculus is bleak.
Revenue is down. Towns missed out on the region’s peak tourism season and the spending that accompanies it. Destroyed homes means fewer people are paying property taxes.
Expenses are up. Roads and bridges need to be repaired. Houses have to be rebuilt. Small businesses require support to stay in the black. People are looking for housing, food, mental health support and other services.
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“Some of these local governments have a $3 million budget and $4 million in debris removal,” said Russ Harris, a board member of the North Carolina Association of Regional Councils of Government. “They can’t cash flow it.” "
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"In Asheville, the city has spent about $24 million on Helene recovery. The city has about $16 million more under contract. FEMA, however, has only reimbursed $10 million.
The city’s also maxed out the amount of money it can borrow ($5 million) through the federal Community Disaster Loan Program, Asheville Mayor Esther Manheimer said.
Manheimer says she has no choice but to raise property taxes. The city has to replenish its reserves, which were used for initial recovery needs. Additionally, she wants to offer employees a cost-of-living adjustment after their “above and beyond” work in the past year.
She also has to take a scalpel to the city budget. A year of annual retirement contributions. A half-million dollar affordable housing trust contribution. Strategic partnership grants. All cut. Hiring is frozen for all but critical recovery staff. With a pinch here and a pinch there, Manheimer said they may tighten their belts to the tune of $5 million."
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Federal money will come. But when and how much is anyone’s guess.
For certain is $1.4 billion from the U.S. Housing and Urban Development’s disaster recovery Community Development Block Grants.
Some FEMA public and individual assistance has arrived, too.
But other federal agencies haven’t announced how much North Carolina will get from their American Relief Act of 2025 allocations. In some cases, recipients have to endure a competitive grant process to secure funding.
For those who seek it, it might take awhile to get federal assistance.
“We know from storms that impacted eastern North Carolina several years ago that in some cases it was many years before they got repaid,” Ramsey said.
In the meantime, local governments need a financial bridge. They’re turning to the state for help.
“Right now, I’m screaming, begging,” Ramsey said. “Local governments have to adopt the budget by June 30, so that’s two months. And no offense to the feds, but nothing at the federal level is going to happen in the next two months that’s going to solve this problem.”
