Thirty-eight-hundred jobs are being eliminated at the University of Texas Medical Branch in Galveston.  The layoffs take effect January 1, 2009.  Most of the jobs will be eliminated at the hospital.  

Texas Representative Craig Eisland, D-Galveston says the job cut will be across the board. 

"A full range of jobs anywhere from doctors and nurses, to cafeteria workers, to janitors.  I believe it's going to be all over the board," said Eisland.

Hurricane Ike caused more than $700 million in damage to the UTMB Galveston Campus.  Operating costs are driving the losses even higher.  The hospital is running at least $25-million-dollars a month in the red, partly because thousands of workers remain on the payroll.  Damage to the facility means they can't go to work. 

"I do know that the University of Texas System is going to give these individuals priority employment at the Texas Medial Center, and MD Anderson in Houston." Eiland revealed.

Galveston residents expected the bad news.

Lynne Springer said "they lost so much money in the storm verses how much money they had in insurance. I realize it's people's jobs and people's livelihoods, but it's something that had to happen." 

Louis Henry was born on the island and his mother spent nearly 40 years working at UTMB.

"What are they going to do, the number of families that are going to be out of work, the children that need to be provided for, your means of supporting yourself.  There is no other means."

UTMB is the island's largest employer.  There are currently 8,000 people working at UTMB Galeston, now nearly half of those jobs are being eliminated.  

"It's a sad day, very sad day.  I'm not happy about that" Henry said.