| TO: | Honorable Tom Craddick, Speaker of the House, House of Representatives |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB63 by Pitts (Relating to appropriations to pay for damages and disruptions suffered by Lamar University and its related institutions caused by Hurricanes Katrina and Rita. ), As Passed 2nd House |
| Fiscal Year | Appropriation out of GENERAL REVENUE FUND 1 |
|---|---|
| 2006 | $34,000,000 |
| 2007 | $0 |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2006 | ($34,000,000) |
| 2007 | $0 |
| 2008 | $0 |
| 2009 | $0 |
| 2010 | $0 |
| Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
|---|---|
| 2006 | ($34,000,000) |
| 2007 | $0 |
| 2008 | $0 |
| 2009 | $0 |
| 2010 | $0 |
The bill would appropriate $34,000,000 to the Texas State System Office for the purpose of paying or reimbursing costs associated with damages caused by Hurricane Rita or Hurricane Katrina.
In January 2006, the State Auditor (SAO) published a review of the financial impact of Hurricane Rita on Lamar University and Two-Year Colleges. The SAO concluded that the total cost to the schools was approximately $43 million. Of this $43 million, $37 million was disaster costs and $6 million was revenue loss. The SAO estimated that the Federal Emergency Management Agency (FEMA) would reimburse the school $30.2 million for the disaster costs. FEMA would not reimburse the schools for revenue loss. To date, FEMA has reimbursed the impacted schools approximately $13 million.
| Source Agencies: | 758 Board of Regents, Texas State University System Central Office
|
| LBB Staff: | JOB, SD, MS, EB, GO
|