Corpus Christi Caller Times Caller.com - Packery Channel may not get much money this year

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Thursday, July 19, 2001
Packery Channel may not get much money this year
Officials hope to receive funds for construction in '03 budget
By Tara Copp and Jason Ma
Caller-Times

George Gongora/Caller-Times

A tight budget might keep Packery Channel from receiving the money needed to begin construction next year. Officials hope to get that money in the national budget for 2002-2003 and don’t expect much of a delay.

   WASHINGTON - The Packery Channel may not receive any of the $19.5 million in construction money Congress OK'd in 1999.
   A tight national budget has persuaded the committee overseeing that money to keep its purse strings closed for the 2001-2002 fiscal year.
   Supporters had hoped for $7 million to start construction next summer. Instead, House and Senate versions of budget bills include $132,000 for the U.S. Army Corps of Engineers to continue doing design and environmental studies.
   The dredging is estimated to cost $30 million. Voters in April passed a special taxing district to finance bonds for the city's $10.5 million share of that. The rest would come from the federal government.
   Developer Paul Schexnailder's investment group plans to invest $677 million for a resort centered on the dredged channel. He couldn't be reached for comment.
   Corpus Christi's lobbyists and city officials learned Wednesday that the $132,000 - the money in both the House and Senate versions of the Energy and Water Appropriations bill - was all the city could see this year.
   "We had ambitions for getting the construction money for the first time, but the (Senate Energy and Water Appropriations) committee didn't agree with us," said lobbyist Larry Meyers.
   The committee opted to not start any new projects this year, Meyers said.
   "This is not unusual for a committee to do that when money is tight, to protect projects that are already under way," he said.
   Money is tight in part because of the limited budget all government agencies have this year to afford President Bush's $1.35 trillion tax cut. Most agencies saw their budgets grow only about 4 percent this year.
   Projects nationwide had to compete for the relatively limited spending; many didn't get what they requested, Meyers said.
   Total spending on the Senate energy and water bill is $25.1 billion, while the House version also sets aside $25.1 billion. President Bush's budget allowed for $22.5 billion.
   Local supporters of Packery Channel said it makes sense that money for construction wasn't approved because an environmental impact study is still pending.
   "The real budget we need to watch is the 2003 budget," said John Trice, a leader in the campaign to pass Packery Channel.
   There are still opportunities in the budget process to insert the money in a bill.
   For example, once the House and Senate pass their versions of a bill, representatives from both chambers will meet in a conference committee to reconcile any differences between the two versions. Then the full House and Senate must vote on whatever comes out of that committee.
   Sen. Kay Bailey Hutchison, who was instrumental last year in getting $1 million for the Corps study, said she's going to try to get more money for Packery when the House and Senate versions go to conference. The Senate bill was on the floor Wednesday evening and was going to wrap up either Wednesday night or today. The House version passed in June.
   The Corps also held out hope to get money during negotiations in conference committee.
   "We're not worried yet," said Marilyn Uhrich, a spokeswoman for the Corps' office in Galveston.
   But if the $7 million doesn't come through, that shouldn't delay construction significantly, she said.
   One reason is that the Corps plans to award construction contracts a few months before the start of the 2002-2003 fiscal year. By the time it starts on Oct. 1, 2002, there could be funding in the next budget.
   As long as the money comes next year, the lack of construction money this year could mean a delay of one to three months, said Tom Utter, assistant city manager.
   The Corps' design work is scheduled to be completed by January, and the environmental impact study should be completed by July 2002. Utter said construction couldn't begin unless the environmental study clears the project.
   "We couldn't use the money until next year anyway," he said.


Scripps Howard correspondent Tara Copp can be reached at coppt@shns.com. Contact Jason Ma at 886-3778 or maj@caller.com

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