2nd special session looms as Harvey’s costs rise
AUSTIN — As unofficial damage estimates from Hurricane Harvey continued to grow, state officials acknowledged Thursday for the first time that another special legislative session could be necessary next year to address the state’s growing tab.
“My personal assumption right now is that we will probably be back in Austin at work no later than January,” said Senate Republican Caucus Chair Paul Bettencourt, RHouston, echoing the sentiments of other House and Senate members.
“The governor and the Legislative Budget Board have the ability to move around quite a bit of money in current appropriations, but it probably won’t be enough when all the bills come in. This storm is going to cost more than (hurricanes) Katrina and Sandy put together, and I’m thinking we’ll be breaking the $200 billion mark before this over.”
While the state would be liable for only a fraction of that amount, after insurance and federal payments come in, but whatever that (remaining) amount is will be something the Legislature will probably have to address.”
Using Rainy Day Fund
That, say other lawmakers, will most likely involve a politically charged debate over tapping the state’s socalled Rainy Day Fund — a $10 billion account officially known as the Economic Stabilization Fund — to pay for some of the stormdamage tab.
Conservative Republicans have steadfastly opposed tapping the fund in recent years to pay for routine state expenses, while moderate GOP members and Democrats have pushed to use that money to restore deep cuts in recent years to core education and health programs.
For the first time, Lt. Gov. Dan Patrick told the Chronicle on Thursday that he will support using Rainy Day Fund monies to pay the Harvey repair bills, even though no decisions have been made about “when we will tap the Rainy Day Fund or how much we will tap it.”
“I’ll be supportive of doing so but that will be determined in the future,” Patrick said. “This is one of the reasons we have it and must always protect it for its intended purposes.”
“This is why we drew a line in the sand in the Senate on not spending one dollar of the Rainy Day Fund during the regular and special session on anything outside its intended purpose,” he said.
Gov. Greg Abbott, who is in the midst of overseeing hurricane recovery operations, has said he will make up to $100 million in funding for disaster recovery grants available and signed a proclamation a week ago — as Harvey first started pounding the Texas coast — to allow making state funding immediately for the emergency.
In a Thursday letter to House members, House Speaker Joe Straus said he will be issuing selective interim charges — directives for legislative recommendations — “in the near future to address these challenges” resulting from the massive destruction caused by Harvey, especially to schools.
“The House Appropriations Committee will identify state resources that can be applied toward the recovery and relief efforts being incurred today, as well as long-term investments the state can make to minimize future storms,” the San Antonio Republican said in his letter. “When the appropriate time comes, other committees will review the state’s response and delivery of services.”
The Legislative Budget Board, jointly headed by Patrick and Straus, can make key decisions on reallocating state funds to meet emergency needs — up to a point, officials said. Half of its members — three senators and two House members — represent areas devastated by Harvey.
Most damaging storm
At the same time, well over a third of the entire Legislature represents areas heavily damaged or impact by Harvey — likely a record.
The 1900 hurricane that leveled Galveston and killed between 6,00012,000 people is listed as the worst hurricane in terms of loss of life. The death toll from Harvey reached at least 38 on Thursday, officials said.
On Thursday, as lawmakers mulled the mounting tab for damages from what is now being billed as the most damaging storm in U.S. history, discussions seemed to center on how much will be needed from the Rainy Day Fund and when the Legislature might have to meet in a special session to approve that transfer.
“This is the exact kind of thing that we have the Rainy Day Fund for, and we move forward with the recovery from this storm I’m thankful that the fund is there and that we saved as much in it as we did,” said state Sen. Joan Huffman, a conservative Houston Republican and member of the Legislative Budget Board.
As rescue and recovery operations continue from Corpus Christi to the Louisiana state line east of Beaumont, Abbott has not yet addressed the rising costs. He and other officials have stressed that enough funding is available to cover any and all emergency operations.