FLOOD03186

• County: Statewide
• Community: All
• Stream Name: All
• Basin: Statewide
• Title: Benefit-Cost Analysis of Hazard Mitigation Projects
• Date: 1/1/1996
• Prepared For: FEMA
• Prepared By: FEMA
• Floodplain - Doc Type: Educational/Technical/Reference Information

VERSION 1.0 1/12/95

B-C PROGRAM: Level One Anaiysis

If benefit-cost analysis is being used ONLY to establish minimum
eligibility for funding and NOT to prioritize projects, then once sufficient
benefits are considered to exceed the project costs, it may not be
necessary to consider additional benefits. For example, if the benefits
of only avoiding building damage exceed costs, then it may not be
necessary to consider any of the other damages and losses avoided.

If desired, data can be entered sequentially. For example, enter data
applicable to building damages only, then review the benefit-cost ratio
to see if it is greater than one. If so, then other data entries can be left
blank. If not, then contents damage data, displacement costs, etc., can
be entered sequentially until benefits exceed costs, i.e., the benefit-cost
ratio is greater than one. In other words, it may not be necessary to
consider some of the more complicated damages and losses, such as
the value of govemment services lost if projects can be demonstrated
to be cost-effective by avoiding only building and contents damages.

However, if benefit-cost ratios are used to prioritize among projects with
benefit-cost ratios greater than one, then it is important to count fully all
of the benefits applicable to each project.

Data Input: Color Codes

Each entry is color coded. See Cell Colors, page 3-11, or Model and
~olor Codes on the Benefit-Cost Program menu.

User data entries can be made only in PINK, GREEN, BLUE or RED
blocks:

PINK BLOCK

Information Oniy: entries do not
affect the numerical results;

Data Input: entries affect the
numerical results;

Override Defauit Values: entries
affect the numerical results;

OMB Policy: entries determined by
OMB/FEMA policies and affect the
numerical results.

GREEN BLOCK

BLUE BLOCK

RED BLOCK

Blocks colored ORANGE, YELLOW, and PURPLE and all other parts
of the program are protected. User entries cannot be made in these
blocks. To change information in PURPLE blocks (Carry Over) the
original data entries in the PINK or GREEN blocks must be changed.

As you enter data, remember the color codesl

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