A Review of Expenditures Related to Hurricane Ike at Texas A&M University at Galveston
March 2009
Report Number 09-025
Overall Conclusion
Texas A&M University at Galveston (University) was closed on September 10, 2008, in preparation for Hurricane Ike, which hit the University on September 13, 2008. In addition to sustaining damage to facilities, the University also suffered revenue losses and incurred costs related to the relocation of academic and student affairs operations to Texas A&M University in College Station.
University Estimate of Losses
The University estimates that its losses from Hurricane Ike will total $17.3 million. It expects to recover $6.5 million from external funding sources, mainly from the Federal Emergency Management Agency (FEMA), and it has requested that the 81st Legislature appropriate $10.8 million under House Bill 6 to help the University pay for the losses that will not be reimbursed from external funding sources.
Auditors' Estimate of Losses
Auditors estimate that the University's losses from Hurricane Ike will total $12.4 million and that the University will recover $6.7 million from external funding sources-resulting in a $5.7 million potential cost to the State.
The majority of the difference between auditors' and the University's estimates of total losses is primarily due to the University including $5.0 million in costs related to mitigation of coastal erosion and for shore side dock reinforcements. The proposed mitigation and dock reinforcement project was previously included in the University's fiscal year 2010-2011 Legislative Appropriations Request, which was prepared prior to Hurricane Ike. Auditors did not include this $5.0 million in their total of estimated losses because the proposed mitigation and dock reinforcement project existed before the hurricane.
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