Why Gov. Abbott won't tap into Rainy Day Fund for Harvey recovery... yet

Gov. Greg Abbott and Mayor Sylvester Turner

HOUSTON – One day after Texas Gov. Greg Abbott said Houston Mayor Sylvester Turner seemed to be trying to hold hostage state Rainy Day Funds to raise property taxes, Abbott responded to Turner's letter with a letter of his own and requested a meeting between their teams.

In his letter, Abbott repeated much of what he said Tuesday -- that the Economic Stabilization Fund, or Rainy Day Fund, will need to be tapped into at some point, but not until after all other federal and state resources have been exhausted; that it's important to have fiscal responsibility and not financial panic after a disaster; and that the city has access to money through Tax Increment Reinvestment Zones that could be used for recovery.

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READ: Abbott's letter to Turner

File: Governor Abbott letter to Mayor Turner

The governor also requested a "meeting between our teams to review all available funding resources and to ensure all federal reimbursement opportunities have been exhausted for recovery expenses incurred by the City of Houston in response to Hurricane Harvey."

Abbott said two payments from FEMA were already presented to Houston ($91.2 million) and to Harris County ($44.5 million), and more money will be distributed once invoices are submitted to the state.

Video: Gov. Abbott gives update on Harvey response, recovery efforts

Abbott then listed two programs he said are available to the city to use:

  • Expedited Project Worksheet -- reimburses for debris removal and emergency protective measures.
  • Community Disaster Loan Program -- loans to help local governments during recovery.

READ: Why Mayor Turner is asking to use Rainy Day Fund for Harvey recovery

The governor also addressed assistance available to individuals:

  • Small Business Administration Disaster Loans -- low-interest disaster loans available.
  • Disaster Unemployment Assistance -- unemployment benefits for individuals who lost their jobs or are no longer working as a result of Harvey; or self-employed.
  • Disaster Supplemental Nutrition Assistance Program -- short-term food assistance benefits for families.
  • Critical Needs Assistance Program -- displaced residents can use assistance to purchase life-saving or life-sustaining items.
  • Disaster National Dislocated Worker Grants -- grants to hire individuals for cleanup work and other employment services.

WATCH: Texas Gov. Greg Abbott on funding requests made by Houston Mayor Sylvester Turner

Abbott also suggested Turner should contact John Otto with the Commission to Rebuild Texas about the programs.

The Mayor's Office responded Tuesday, saying:

"We cannot raid funds that the state has indicated cannot be raided – and which are largely for drainage projects to prevent future flooding anyway. Mayor Turner is asking the governor to do what other governors, such as Florida’s, are doing. It’s the Texas governor’s right to say no."

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