GALVESTON, Texas -- UT System leaders and state leaders are scheduled to meet in Austin inside the governor’s office Tuesday to decide the fate of thousands of UTMB employees.

The Galveston hospital says layoffs are necessary. Thousands of medical jobs are at stake.

This could be a decisive blow to the island’s economy as residents try to rebuild a month after Hurricane Ike pounded the area.

Now leaders must decide how to shore up UTMB. The medical branch has racked up more than $700 million in costs since Hurricane Ike and has taken in very little comparatively. 

A plan last week could have cut up to 4,000 jobs, a third of all the workers at UTMB.

But that plan was put on hold pending today.

Despite these challenging times, earlier this month, a UTMB spokesman said the system will recover.

UTMB Web Site

“We have one of the best research teams in the United States, infectious diseases, in women’s health and also in neurosciences. So I think our future is very, very strong in the academic and research world,” UTMB spokesman Dr. Ben Raimer said.

UTMB is the largest employer in Galveston County, with 12,000 workers overall.

It was already in trouble before the storm when it cut nearly 400 jobs.

The good news is that there is an estimated state budget surplus so money is available to assist.