Disaster status means more federal fire aid

President Bush's decision to elevate the California fires to disaster status opens the door to increased federal aid for people and hard-pressed governments seeking to rebuild.

"This declaration means millions of dollars in much-needed assistance to help our state rebuild and recover. The federal government did the right thing," Gov. Arnold Schwarzenegger said. "These wildfires have been extremely devastating to our state."

As wildfires raged in seven Southern California counties this week, officials from Sacramento and Washington visited communities hit hard by blazes that have burned many hundreds of homes and businesses and caused millions of dollars in damage. Homeland Security Secretary Michael Chertoff has been sent to California to promise aid, and Bush is scheduled to arrive Thursday. Schwarzenegger has made several appearances.

The Federal Emergency Management Agency has made plans to bring more than 50,000 cots, 75,000 blankets and 50,000 meals as immediate aid for those who have been evacuated in San Diego, Chertoff said in an interview today.

But the presidential declaration allows people to seek additional help. People within the seven counties could receive as much as $28,200 to deal with emergency lodging issues, a spokeswoman for FEMA said by telephone from Washington.

Other costs that could be reimbursed include medical and dental work not covered by insurance, and funeral costs.

Insurance is a key issue because FEMA assistance is considered an advance and must be repaid to the government when the insurance settlement is received, the agency said.

Property owners who sustained more than $10,000 in damage could receive a break on their taxes if they apply to their local assessor's office.

"You can get reassessed so you're not paying taxes on a full value of a house that's destroyed or partially damaged," said Robert Knowles, a spokesman for the Los Angeles County Assessor's Office.

The tax break applies statewide since it falls under the misfortune and calamity section of the state tax code. It was widely used during the 2003 fires, he said.

There are additional federal funds available to pay for repairs or the cost of replacing destroyed homes that are not covered by insurance, the FEMA spokeswoman said. In addition to direct aid, low-costs loans through the Small Business Administration are available.