The more than 43,000 acres burning in Larimer County has already destroyed more than 100 homes, and it's only 10 percent contained.
The $20 million will come from two sources: $12 million from the Major Medical Insurance Fund and $8 million from the Perpetual Base Account of the Severance Tax Fund.
With this declaration, Larimer County can request reimbursement from the state for its cost in fighting the fire.
The declaration will also allow the state's forest service to apply for federal funds for reimbursement.
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