Texas in clash with Greyhound over Ike bills

Greyhound Lines Inc. is still waiting for the state of Texas to pay it nearly $1 million for the bus company's work evacuating people from hurricanes Ike and Gustav last year - even as another hurricane season is already under way.

Texas says that how much it actually owes Greyhound is in dispute, and the state comptroller's office is discussing that issue and the emergency evacuation contract with the company. Neither Greyhound nor state officials would divulge details of the disagreement.

"We are disputing the amount that they are owed," said Allen Spelce, spokesman for the comptroller's office.

In February, The Associated Press obtained a list of 350 companies and other organizations that were still owed millions of dollars for services related to Hurricane Ike, the biggest storm to strike the state in 2008. The businesses provided everything from transportation to portable toilets to ice and water during the Sept. 12-13 storm.

They waited for six months as Gov. Rick Perry and federal officials argued over who had to come up with the money. After a legislator complained about the unpaid bills, Perry's office announced state funds would be freed up to pay the businesses and that checks were being sent out.

So far, the state has paid about $33 million for bus services for Hurricane Ike, $13 million for Hurricane Gustav and lesser amounts for last year's Hurricane Dolly and Tropical Storm Edouard, amounting to 94.5 percent of the bus bills, Perry spokeswoman Katherine Cesinger said.

Dallas-based Greyhound was called into service as a state vendor when the storms struck last September and evacuations were ordered along the coast and in southeast Texas.

The company has received none of the $813,580 it billed the state for Hurricane Ike services or the $77,168 it charged for Hurricane Gustav, Perry's office told the AP.

Greyhound would say only that "we did have a commercial agreement" with Texas and that talks are taking place.

"We are working through it with the state," spokeswoman Abby Wambaugh said.

Greyhound is one of two bus companies that hasn't been fully paid for invoices submitted for hurricanes Ike and Gustav. The other, Coach America of Dallas, received $11.2 million in state payments and is awaiting the remaining $1.8 million billed for its work, Cesinger said.

"We have people talking to the state," said Max Bachman, assistant controller for Coach America. "They're paying. Is it as quick as people would like? No. But they're paying."

Despite the slow payments, Coach America said it would help the state when another hurricane hits. Wambaugh would not say the same for Greyhound with certainty, but said the company wants to assist states when it can and that it has a history of helping Texas, pointing out its evacuation work for 2005's Hurricane Rita.

Some smaller bus companies that had to wait months for state payments said the delay caused them financial difficulties, especially because of the recession. They have said it would cause them to think about how much they could help Texas in a future disaster.

"It's pretty hard to say no when these things do happen," said Peter Kritikos, office manager for Colonial Coach Lines near Chicago, which waited months before receiving the $329,301 it was owed by Texas. "At least there will be a pause this time, versus just 'of course.'"

The AP obtained a copy of Greyhound's state agreement, signed in 2006, that among other things, spells out the maximum amount per mile and per hour of waiting time the company would be paid for bus services. It specifies a maximum rate of $2,232 per day for up to 25 "recliner type coach buses."

Several bus companies, including Greyhound, have had agreements with the state's emergency management division to help when a disaster occurs and evacuations are needed.

Perry's office noted that the Legislature recently approved funding for the state's disaster account to make vendor money readily available in the future.

"These private sector partners are vital to the success of moving Texans out of harm's way during a disaster," Cesinger said.