Ike could cost Texas state government up to $6 billion to $8 billion

Windstorm fund a leading issue at Capitol | AP Texas News | Chron.com - Houston Chronicle: "AUSTIN — Hurricane Ike was the big storm Texas officials feared would hit the coast — and the state's way of paying for it afterward.

When lawmakers convene Tuesday, they'll face the financial devastation left by the Category 2 storm that walloped the upper Gulf Coast on Sept. 13, devastating Galveston and nearby counties.

They'll look to restructure the state's windstorm insurance association, which is filling in the gap left by private insurers who stopped issuing policies in some Gulf coast counties, and consider whether to put money into a state disaster fund that Galveston officials found out the hard way was empty.

'The Legislature was wise in setting up the disaster fund, but we were cheap in not funding it,' said Democratic Rep. Craig Eiland of Galveston. 'A fund that doesn't have any money in it is pretty much like no fund at all.'

Overall Ike costs could sock state government with a potential $6 billion to $8 billion bill, said House Appropriations Chairman Warren Chisum. Some of that impact may be spread over four years because of the way the Texas Windstorm Insurance Association is set up to allow insurance companies to seek state tax credits over time, Chisum said."