Sandy Damages Cost NY and New Jersey $71 Billion

The memory of Sandy has begun to fade, but the recovery effort will damage budgets significantly. An official estimate reads that Sandy damages will cost NY and New Jersey $71 billion.

Sandy was a superstorm for the history books. New York Governor Andrew Cuomo says that Sandy was even worse than the damaging Katrina in 2005. He told the press, New York will need $42 billion to recover from the wreckage and try to prevent a similar catastrophe. New Jersey Governor Chris Christie said the preliminary estimate of damages is at $29.5 billion. On the overall Sandy will cost New York and New Jersey a whopping $71 billion to repair the damage.

On Monday, New York Governor Andrew Cuomo described the damage of Sandy as even worse than that of 2005’s Hurricanes Katrina and Rita. There were 305,000 houses in the New York state that Sandy destroyed, significantly more than Katrina’s and Rita’s 214,700 toll. Businesses and home across the densely populated area were significantly impacted by Sandy’s power outages, floods, winds and heavy rain.

“Hurricane Katrina got a lot of notoriety for the way government handled – or mishandled, depending on your point of view – the situation” said New York Governor Andrew Cuomo. However, the damage caused by Sandy in the New York State area “was much larger in Hurricane Sandy than in Hurricane Katrina, and that puts this entire conservation, I believe, in focus”.

Cuomo added that the $42 billion shouldn’t be paid of tax payers’ money by increasing taxes. “It would incapacitate the state. Tax increases are always a last, last, last resort” Gov. Andrew Cuomo told reporters. The Federal Emergency Management Agency commonly reimburses states about 75% of the money used to restore services.

Private insurance should cover $3.8 billion, and the Federal Emergency Management Agency should reimburse the New York State another $5.4 billion. But the city is requiring another $9.8 billion to cover the costs the Federal Emergency Management Agency won’t. Mayor Michael Bloomberg announced he will ask the Congress for the $9.8 billion they need.

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