Galveston Officials Beg Legislature For Rescue

In the aftermath of Hurricane Ike, officials from Galveston on Wednesday begged a panel of state legislators for a rescue package that would pull the island city out from a financial shortfall that has rocked the city to its core.

From the Austin American-Statesman:

Mayor Lyda Ann Thomas and City Manager Steve LeBlanc painted a bleak economic picture of their city for members of a legislative committee meeting on the island.

They told lawmakers that despite a hiring freeze and a 3 percent pay cut for all employees, layoffs are imminent and that property tax revenue will be down by up to 40 percent.

About 75 percent of the homes in Galveston, about 50 miles southeast of Houston, sustained some damage from Ike’s 110-mph winds, rain and 12-foot storm surge when the storm came ashore near the city on Sept. 13.

“We’re getting to the point of being desperate for help,” LeBlanc said. “If there is no help from the state, we might have to cut back on city services severely.”

Galveston, which has an annual budget of about $80 million, also needs help to pay for the $178 million in damage Ike caused to buildings, roads and other infrastructure, LeBlanc said.

Thomas and LeBlanc asked lawmakers for financial help, including letting the city temporarily keep most or all of the sales tax revenue it usually gives to the state and apply for long-term, low-cost emergency loans.

In all honesty, don’t expect the Legislature to give serious consideration to a sales tax rebate of any kind. It would screw up school finance and everything else because you’d be taking money that’s anticipated out of a formula and bla, bla, bla, bla.

Emergency “loans” are more likely, but I do wonder about the constitutionality of something like that under the Texas Constitution. I’m not against it, but I do wonder if there is (a) precedent and (b) any constitutional roadblock lurking out there.

One interesting thing is that the city has applied for money from the Disaster Contingency Fund created by the 80th Texas Legislature. The only problem? The Legislature never put any money in the damned fund; it is simply sitting around like an empty cash register.

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