Disaster aid vote could come early next week
By Ellen Crawford
The Forum
The full Senate could vote on its Upper Midwest disaster aid package as early as Monday or Tuesday, according to Sen. Byron Dorgan, D-N.D.

The supplemental spending bill contains $700 million to $800 million for the Dakotas and Minnesota. The House package contains $698 million for the region.

A House-Senate conference committee will have to work out the differences in the two versions. Dorgan expects that to happen very quickly.

"I would not expect that to be a problem at all," he said Thursday.

However, he doubts that Congress will help bail out North Dakota’s unemployment benefit fund.

Gov. Ed Schafer said this week that the Grand Forks flood could drain North Dakota’s fund unless Congress kicks in federal money. Grand Forks residents out of work because of the flooding could drain $38 million from the fund within six months, he said. The fund now contains about $37.7 million.

Schafer asked Speaker of the House Newt Gingrich for federal money to keep the fund afloat.

Dorgan said Congress never has provided this kind of assistance to states, and he thinks North Dakota should use the money in its unemployment fund before asking for federal help.

He said the Senate Finance Committee hasn’t acted yet on his proposal to waive the requirement that taxpayers pay interest on taxes they owe even if the Internal Revenue Service has extended their deadline for filing their tax returns and paying their taxes. The IRS said taxpayers in the hardest hit parts of the Red River Valley have until Aug. 15 to file returns.

Dorgan asked the finance committee Thursday to hold hearings immediately on his interest proposal and other tax-law changes he believes will help the Upper Midwest’s blizzard and flood victims.

His other proposals are:

E Allow people living in counties declared federal disaster areas to make penalty-free withdrawals from their Individual Retirement Account for disaster-related needs such as restoring their homes, businesses and other property.

E Allow disaster victims to claim 100 percent of their disaster-related losses. Current law lets taxpayers deduct just a portion of their casualty losses for tax purposes if the losses are greater than 10 percent of their adjusted gross income.

E Allow farmers and ranchers to defer paying income or capital gains taxes on proceeds from the involuntary sale of livestock because of a weather-related emergency if the proceeds are invested in livestock later. Dorgan said an example is a rancher who has to sell his cattle because he couldn’t produce the hay to feed them.

He said he hopes Congress will act quickly on these proposals to get working capital to the people who suffered through the record winter weather and spring flooding.

The Red River Valley’s plight has touched people all over the country, Dorgan said. Donations of $25, $1,000 and even $5,000 have poured into his office from individuals who want to help. He forwards the contributions to the North Dakota Community Foundation’s Red River Valley flood relief fund.