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The opportunity cost for state governments that spend money during natural disasters includes the forgone benefits from alternative uses of those funds, such as investing in education, infrastructure, or healthcare. Additionally, the diversion of resources may lead to longer-term economic impacts, including increased debt or reduced funding for essential services. This allocation can affect overall state budget priorities and limit future investments in community development or disaster preparedness. Ultimately, the immediate response might address urgent needs but could compromise sustainable growth and resilience in the long run.

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