RAYMONDVILLE — More than a year after the Willacy County Correctional Center closed, the prison’s insurance policy is paying out. Yesterday, Willacy County Judge Aurelio Guerra said the county has received $443,000 in business interruption insurance.
The payment eases a financial crisis stemming from the prison’s March 2015 closure, which slashed $2.7 million from the county’s $8.1 million general fund budget.
As officials plan to draft next year’s general fund budget, they do not expect budget cuts, Guerra said.
He said officials “certainly” do not plan layoffs.
The insurance payment covers revenue losses incurred in May and June 2015, Guerra said.
The check marks the insurance company’s second payment since May 2015, when the county received $449,000. Guerra said the initial payment covered losses incurred in March and April 2015.
Business interruption insurance reimburses revenue losses for a period of up to a year, Guerra said. But officials do not know whether the insurance company will make further payments.
“We’re hopeful we will continue to get more,” Guerra said.
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