Posted by On April 27, our state was hit with numerous tornadoes and severe thunderstorms. Tragically, these storms claimed the lives of over 200 Alabamians and injured hundreds more. Thousands of homes and businesses were devastated as these storms moved across our state. My heart aches for all those whose lives were affected by this tragedy, and my thoughts and prayers are with you.
Tragedy like this reminds us of how precious and fleeting life is. Our differences – political and otherwise – are insignificant in the face of disaster and devastation. We are all part of one community, one brotherhood. When our neighbor hurts, we all hurt. And we have a lot of neighbors who are suffering right now.
It is important for us as legislators to do what is necessary to help our state recover from this unspeakable tragedy. But we must set our political differences aside and work together in the spirit of cooperation.
One area where we have been unable to come together is over the state budgets. The Republicans are praising themselves for passing the budgets in record time. I do not think it is a record to be proud of. In light of the tragedies of April 27, we do not yet know what will be necessary to help people rebuild and recover. We need to find the funding to help rebuild our schools and other public facilities that were damaged or destroyed by the tornadoes. We need to help our fellow Alabamians get access to the basic necessities of life. We need to find ways to help local business rebuild and recover from this disaster. We must help Alabama recover.
One way we can help with the recovery is by bringing jobs to Alabama. I recently had the pleasure of announcing that SET Enterprises would build a steel processing center in Clarke County. This business will create up to 40 quality jobs for people in my district. We need to do more to create quality jobs in Alabama. We need to do more to help existing businesses thrive in Alabama. And we need to find ways to help those businesses damaged in the storms rebuild and recover.
To accomplish this, we need cooperation. We need to set aside election-year slogans and party agendas and get down to the business of helping Alabama recover. The people of this state are resilient and determined. Alabama will rebuild and recover from this disaster. Once again, my thoughts and prayers and will everyone who is suffering in the wake of this tragedy. May God bless you and all of Alabama.
Public Schools and Public facilities are required to have sufficient insurance to be repaired or re-built. No additional money should be required from the taxpayer for this. Why would money be put in the budget that should not needed?
Thank you, Senator. You are 100% correct.
In response to Therm –
Schools are required to have replacement cost insurance, not actual cost value insurance. Actual cost value insurance pays the market value at the time the school was destroyed. Replacement cost insurance only pays out based on the original price, and does not factor in inflation or other changes in the costs to rebuild or repair.
Also, at the time of the loss the value of the building has to at least be insured 80% of its value for the replacement cost to kick in. But with the pace at which construction costs have risen, many schools no longer have 80% of their value insured.
I would also point out that replacement cost insurance does not cover classroom supplies or students personal supplies that has been lost, such as pens and paper or even text books or computers.
A friend of mine in the insurance industry gave me an example. He told me that 5 years ago, his company insured a school for $1 million. But today, construction costs have risen to $1.7 million. Because the school is not longer covered at 80% of its value, the payment would revert to an actual cost value and the school would lose $700,000.
I hope this has answered your question about why the legislature would need to put more money in the budget for school construction.
Mike,
Can you please provide something more substantive in defense of your argument than “A friend of mine”? I frequent the construction industry and bid prices have plummetted in recent years. I am of the strong belief tha construction costs have dropped. Architectural flare; is on the rise.
The presentation by the State Building Commission to a Legislative Committee in 2009 sure sounded like schools were required to carry enough insurance to replace their destroyed or damaged buildings. The entire reason for the discussion was on whether or not to float a bond issue to have a fund to take care of these types of situations. The Building Commission representative indicated the new requirements made such a fund unnecessary.
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