New State Law Brings Much-Needed Support to Struggling Districts
For years, school districts along the Texas Gulf Coast have battled a growing storm of financial pressure—rising windstorm insurance premiums. But this spring, the Texas Legislature approved significant relief through House Bill 2, a wide-ranging education funding bill that includes $100 million in state aid for coastal schools facing insurance cost differentials.
Why Storm Insurance Is So Expensive for Coastal Districts
Unlike their inland counterparts, coastal school districts must carry expensive windstorm insurance to protect their facilities from hurricane damage. These premiums have surged recently, often forcing districts to accept reduced coverage and higher deductibles to stay insured.
Superintendent Sharon McKinney of Port Aransas ISD—located on Mustang Island and battered by Hurricane Harvey in 2017—highlighted how dire the situation has become.
“We’re not fully insured, and we haven’t been for years … because of the cost,” McKinney said.
The district’s windstorm costs doubled between 2019 and 2020 alone. If another storm like Harvey hits today, the district might struggle to make full repairs in a timely manner.
House Bill 2 Offers Coastal Districts Targeted Financial Relief
State Rep. Todd Hunter led the push to include insurance assistance in House Bill 2. The provision offers state aid to districts in coastal counties by covering up to 80% of the difference between their per-student insurance costs and the state average.
While the exact calculation remains uncertain, McKinney believes the aid could account for roughly a third of Port Aransas ISD’s current windstorm insurance expenses.
“The windstorm insurance allotment will keep us from reducing our coverage,” she said.
This is especially meaningful for districts like Port Aransas, where windstorm insurance alone costs around $1,200 per student—nearly 20% of the state’s basic per-student funding allotment.
Flour Bluff ISD Also Stands to Benefit
Further down the coast, Flour Bluff ISD is also grappling with insurance costs. Located between Oso Bay and Laguna Madre, the district has seen premiums increase by more than $1.7 million over four years.
Despite some cost savings from renegotiated contracts, the district had to settle for a significantly reduced loss limit—the maximum payout after meeting a deductible.
“Before 2017, our loss limit was $100 million. Today, it’s only $25 million,” said Superintendent Chris Steinbruck.
That gap is dangerous. With a total insurable value of $286 million, Flour Bluff ISD cannot afford a catastrophic storm. But now, thanks to the new law, the district could receive up to $1 million in aid to bolster coverage.
“This is a huge win,” Steinbruck emphasized. “It allows us to redirect funds toward hands-on learning opportunities and improved educational programs.”
Moving Forward: A More Secure Future for Coastal Schools
In addition to insurance aid, House Bill 2 includes increased funding for teacher salaries—another much-needed boost for public education.
Texas school districts must operate within strict budget constraints, with revenue from local taxpayers and state support. The burden of maintaining high insurance coverage has long diverted funds away from student-focused investments.
Now, districts like Port Aransas and Flour Bluff hope they can protect their facilities and enhance the learning experience.
“We’re excited,” Steinbruck added. “We’re committed to stretching every dollar to deliver even better educational opportunities for our kids.”
Final Thoughts
The passing of House Bill 2 represents a vital shift in recognizing the unique financial challenges of Texas coastal schools districts. Texas boosts windstorm insurance funding as hurricanes worsen, helping coastal schools stay safe, open, and operational.