Schumer: Flood relief held up

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February 21, 2012

BY JOE MAHONEY Staff Writer The Daily Star Tue Feb 21, 2012, 02:30 AM EST

SCHOHARIE -- The federal spigot for disaster aid that could spark sorely needed business growth has become gummed up by congressional inaction, Sen. Charles Schumer, D-N.Y., said Monday.

In a stop at this village slowly recovering from a major flood last summer, Schumer urged two key congressional committees to release financial assistance for Mohawk Valley and Catskill communities heavily damaged in last year's flooding.

A fund totaling $200 million in economic development funding, tucked in appropriation bills already approved by Congress, has yet to be allocated because the Senate and House Appropriations committees must sign off on guidelines determining how the dollars can be distributed, Schumer said.

"This funding isn't doing a bit of good until the congressional appropriations committees sign off and put those critical investments into the hands of those repairing and rebuilding from the storm's damage in Schoharie," Schumer said. "We need all hands on deck to help rebuild in flood-hammered upstate counties to get local communities and their economies humming again."

Schumer said the intent of the legislation authorizing the funding is to have the Economic Development Administration target aid that will spark economic growth and build new infrastructure such as research facilities, technology parks and water-treatment plants.

"The bill has passed, but the money is still stuck in Washington, bundled up in red tape," he lamented. "This is like sending a lifeboat to rescue a drowning person, but the lifeboat is 10 feet away."

In western Greene County, another community ravaged by Hurricane Irene, the town of Prattsville, is seeking federal disaster aid to help build a biomass refinery energy park.

Schumer cited the biomass project as an example of a program that could be funded once the money goes into the Washington pipeline.

Kevin Piccoli, coordinator of the Rebuild Prattsville program, told The Daily Star his town is hoping the biomass park could bring 50 new jobs to the region.

If the project qualifies for the federal aid that is now delayed in Washington, Piccoli said, "That would be a great thing."

In the meantime, Rebuild Prattsville is working on its own to launch a more modest program by requesting $50,000 from the National Endowment on the Arts to fund an artists-in-residence program that could attract artisans to the area while also giving training to youths, Piccoli said.

Joining Schumer in the Village of Schoharie were Schoharie County Board of Supervisors Chairman Harold Vroman, County Budget Director Alicia Terry and Mohawk Valley Economic Development District Director Greg Eisenhut.

Officials said directing aid to the business loan program operated by the Mohawk Valley Economic Development District is just one example of how the region could respond to the hardships inflicted nearly seven months ago by Hurricane Irene and Tropical Storm Lee.

The non-profit development agency provides loans to businesses in Otsego, Schoharie, Herkimer, Oneida, Schoharie, Montgomery and Fulton Counties.

Officials said the agency has identified numerous companies across the Mohawk Valley that could benefit from no or low interest loans.