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Georgia officials agree to spend 0 million in farm and forestry aid following Hurricane Helene.
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Georgia officials agree to spend $100 million in farm and forestry aid following Hurricane Helene.

ATLANTA – Georgia state government diverts $100 million to fund farmer loans and cleanup after Hurricane Helene.

The Georgia State Finance and Investment Commission voted unanimously Friday to spend money that had been set aside for construction projects or to pay down existing debt.

Authorities estimated last month that the storm, which caused significant damage in the eastern half of the state after landing on September 26 in Florida, caused $6.46 billion in economic losses in the state’s agricultural and forestry industries.

Cotton, pecan, and chicken farmers suffered heavy losses, as did owners of private forest land. Lt. Gov. Burt Jones and others called the damage a “generational loss.”

The Georgia Development Authority, a state agency that lends money to farmers, will receive $75 million to provide relief loans to farmers and related businesses in the agricultural sector. The remaining $25 million will be spent cleaning up lost lumber and other debris, said Garrison Douglas, a spokesman for Gov. Brian Kemp.

Because Georgia was full of excess cashit finances construction projects with cash, instead of the traditional method of selling bonds to borrow money. The $100 million was earmarked for future spending, but it had not been allocated to any projects already underway, Douglas said.

Given that Georgia finished last year with a $2 billion surplus, lawmakers may be able to replace the $100 million when they amend the current budget during the 2025 legislative session that begins in January.

The state did not spend as much money after Hurricane Michael in 2018. Damage to agriculture from Helen was estimated to be twice as costly as that caused by Michael. The previous storm was followed by a Federal fight for aid this delayed aid to farmers. Georgia itself spent more than $470 million on loans and recovery after Michael.

“It’s something we learned we could do,” Douglas said of the $100 million. Kemp and other state leaders say they will consider additional relief both when the General Assembly meets in January, as well as through administrative action before then.

“We will continue to work with stakeholders at all levels to direct resources and support to hardworking Georgians devastated by this storm,” Kemp said in a statement Friday.

Kemp, Georgia State House Speaker Jon Burns and others urged Congress to act quickly on a relief plan for Hurricanes Helene and Milton. They are calling on Congress to provide block grants to states, which states can then provide to farmers for recovery purposes. Burns advocates similar block grants that states could spend on repairing damaged infrastructure and helping private businesses and citizens.

“This measure will provide needed financial relief to farmers and foresters as we continue to work alongside our federal partners to secure all available assets and resources for Georgians impacted by this disaster,” Burns said in a statement.

The Federal Emergency Management Agency said Thursday it has already spent $1.3 billion in direct aid to people following Helene and Hurricane Milton. FEMA spent more than $1.1 billion on debris removal and emergency protective measures.

The Georgian government itself cannot provide direct aid to individuals and private businesses because its constitution prohibits what it calls gratuities – what most people would call gifts. Georgia Agribusiness Council President Will Bentley told a state Senate committee Monday that a constitutional amendment is needed to authorize direct disaster aid.

Besides Kemp, Burns and Jones, other commission members who voted in favor of the spending included State Auditor Greg Griffin, Attorney General Chris Carr, Agriculture Commissioner Tyler Harper and State Treasurer State Steve McCoy.

The Georgia Development Authority is scheduled to meet Monday in Macon to begin spending the $100 million.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.