Ike-damaged schools want insurance help

School districts affected by extensive property damage caused by Hurricane Ike in 2008 have seen their insurance premiums skyrocket and want the state to help pay for it.
District officials in Galveston County have had discussions with state Reps. Craig Eiland of Galveston and Larry Taylor of Friendswood, according to the Galveston County Daily News.
"There are a lot of us in the same boat south of Interstate 10," Paul McLarty, Clear Creek's chief financial officer, said. "We've got concerns here in Galveston County that districts in Montgomery County, for example, don't have to worry about when you look at our premiums."

Clear Creek in 2009 spent $3.6 million on property casualty insurance, which is driven up by windstorm coverage, McLarty said. The district receives a maximum of $50 million for windstorm coverage, but the district's assets are valued at about $1 billion.

Legislators who convene in January face a budget shortfall estimated at $18 billion.
The state should incorporate higher insurance premiums for school districts along the Gulf Coast when calculating school funding, said Eiland.
"We recognize and allocate funds in West Texas to rural districts for their excess transportation costs because they have to run buses over large stretches of the county to bring kids to school," he said.

Galveston ISD will spend $1.8 million on insurance this year. After Ike, which hit on Sept. 13, 2008, premiums increased by 40 percent, said finance director David Dworsky. Adjusters classified the damage at each Galveston campus as flood-related.
The district has spent about $42 million on Ike recovery, said Dworsky.
"You have to weigh the high cost of excess coverage versus when you think the next event will happen," he said.

Clear Creek's premiums increased by 230 percent in 2006, the year after hurricanes Katrina and Rita. The state didn't provide additional funding that year for insurance spike, so the district began reserving funds to offset premium spikes.
Insurance premiums for Texas City Independent School District have increased by 825 percent in the past nine years, said district spokeswoman Melissa Tortorici. The district will pay $1.2 million on insurance this year.

"It would be nice for the state to at least take our location into account for funding issues knowing how high our insurance costs have gone," said Tortorici. "Every dollar we pay on insurance is $1 less we have to use for kids."


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