A list of funding priorities, he says. Because he’s passive like that.
Answering Houston’s latest complaints over funding for Hurricane Harvey recovery efforts, Gov. Greg Abbott on Wednesday told Mayor Sylvester Turner the state can step up with more money as soon as the city gets a list of its top needs to the state.
Let’s meet quickly, Abbott said, as the deadline for an initial wave of federal funding is Friday.
After some verbal back-and-forth between the two leaders in recent days over funding for debris removal among other costs, Abbott wrote a four-page letter to Turner late Tuesday outlining seven different federal programs under which Houston will qualify for additional hurricane relief — from small-business disaster loans to special unemployment assistance to funding to help with food and housing needs.
“The Economic Stabilization Fund (the official name of the Rainy Day Fund) is a limited resource, and so it is imperative we understand the statewide financial situation before draining the fund only to learn of more financial obligations,” Abbott said in his letter.
“As of now it would be impossible to determine the highest and best use of ESF, because we do not yet know the extent of the losses . . . Texas should first use the full array of state financial resources and federal resources already available already available to us to respond to our current needs.
“Those tools should sufficient to respond to our needs, and Texans’ needs, until the next (legislative) session at which time a supplemental budget can be passed to pay for the expenses Texas has incurred. That supplemental budget will almost assuredly require using money from the Rainy Day Fund.”
See here for the background. I have no idea if Abbott felt a sensation akin to “shame” or “political pressure”, or if this story follows on the heels of the other one simply because there was information made available subsequently that added to the original picture. Be that as may, to address the substance of Abbott’s letter, let me first point you to this story in the Press:
Turner did give Abbott at least three specific examples of how Houston could use the Rainy Day Fund money in his letter Monday. For one, debris removal is projected to cost Houston $25 million, since FEMA is picking up 90 percent of the projected $250 debris removal tab. Turner has said structural damage to city buildings is now in the ballpark of $175 million — but meanwhile, the city’s flood insurance plan capped out at $100 million. In order to extend the plan through April 2018, so that the city still has flood insurance should another tropical storm make landfall this year, that’ll cost $10 million. The city must also pay a $15 million insurance deductible to recover on damages.
The mayor’s spokesman, Alan Bernstein, said that if the state were to hand over the $50 million to cover these insurance and debris removal costs, that is all the city is asking for and there will be no need to raise taxes.
$50 million is less than half of a percent of the total fund.
Is that list-y enough for you, Greg? Author Megan Flynn did a nice job of talking to some fiscal conservative types, none of whom could think of a good reason not to tap into the Rainy Day Fund for this. Note also that allocating $50 million from the $10 billion fund would “drain” it in the same way that spending a nickel on a piece of gum would “drain” a $10 bill.
The governor rejected Turner’s request. He and Lt. Gov. Dan Patrick, another Houstonian, have said the mayor can use funds held by Tax Increment Reinvestment Zones for Harvey cleanup and recovery efforts. They’re mistaken. TIRZ bond funds are legally restricted to the use for which they were issued.
The governor has said the mayor’s request is unprecedented. Again, he’s mistaken. In 2013, the Legislature tapped into the Rainy Day Fund to help the Bastrop area recover from devastating wildfires. Bastrop County residents will tell you those fires were bad, but they didn’t cause damage expected to top $150 billion. That’s the toll Harvey wrought.
The governor has said the state has given Houston money. Again, he’s mistaken. The money that’s come our way is FEMA money destined for Houston and passed through the state, which keeps more than 3 percent for administrative costs. No state money has been allocated to the city for Harvey recovery.
Other than the folly of calling either Abbott of Patrick a “Houstonian” – Abbott has lived in Austin for all 20+ years of his political career, while Patrick is a “Houstonian” in the way all rich old white guys in the far flung master-planned communities and who think all cities are cesspools of crime and corruption because they don’t have enough rich old white guys like them living in them – I agree. What Abbott wants more than anything is a pretext to not do anything. If these falsehoods don’t work, I’m sure he’ll have others at the ready. The Observer has more.