Remediation and recovery are normally treated as operating budgets while reconstruction budgets are just about always are 100% capital in nature. The budgetary and other responses to any disaster or emergencies should be the best effort by any government as it involves the welfare and safety of the people living in the country.
An important aspect of the emergency management when government fails is response from public and helps considerably when all budgetary planning and actions do not work. "Hurricane Katrina revealed poverty and desperation -- but also the natural generosity and kindness of Americans who have never been willing to let others suffer needlessly. It also revealed the inherent weakness of centralization and, alarmingly, it revealed also an administration eager to justify the assumption of new, and potentially abusive, powers. The real lessons of Katrina are that acts of power, exercised in top-down fashion by the federal government, are not the way to go" (Yates, 2005).
References
Smith, J. (2006). Budgeting for Disasters: Part I. Overview of the Problem Budgeting...
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