Gov. Jon Huntsman Jr. joined a bipartisan group of legislative leaders Wednesday to announce the assistance. But still up for discussion are where the money will come from, the interest rate and how Washington County will pay it back.
State officials, many of whom visited the devastated areas, are expected to solidify their plan in the next few days.
"Ultimately, this is not about roads and bridges," Huntsman said. "This is about people and helping them rebuild their lives."
But the state has no immediate plans to provide financial help to the families who no longer have a home. The Santa Clara and Virgin rivers swallowed about 30 houses beginning Jan. 11 and rendered dozens more unlivable.
While lawmakers have not given up on helping those who lost private property, Santa Clara Rep. David Clark said it would be "very challenging."
Instead the state plan would provide a $25 million loan to help stabilize the greatly expanded rivers and about $6 million from the state's revolving loan funds to help repair damaged water, irrigation and sewer lines. The $25 million loan may require some form of legislation. Huntsman said some of it could be provided at no interest and some could be forgiven.
The money may cut into the projected revenue increases state agencies are now vying for.
The loans will be part, if not all, of the required match to receive federal emergency money. President Bush is expected to sign an emergency declaration within a week. An assessment of damage by Federal Emergency Management Agency may take months, but when it is complete, FEMA will provide the funds to repair most public infrastructure. FEMA requires local governments to pay a 25 percent match for most projects.
Washington County Commissioner Alan Gardner said county assessors say the flood caused about $145 million in damage to public property.
"We got some big bills building up," he said.
St. George Mayor Dan McArthur expressed his gratitude for the proposed loans.
"This is another expression of the north helping the south," he said.
The Federal Highway Administration is also expected to provide financial aid to rebuild and repair damaged bridges and roads.
The Utah Department of Transportation is finishing a report that outlines 13 damaged bridges ranging from those covered in debris to three that are washed away.
UDOT also will need to rebuild hundreds of feet of roadway that the river swept away.
mcanham@sltrib.com
