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A summer of natural catastrophes, from epic hurricanes to scorching wildfires, has exposed another peril in disaster-prone states – how to pay for the rescues, repairs and rebuilding.It has a dedicated emergency fund with roughly $20 million available annually and a rainy day fund with approximately $2.4 billion, England said.Texas, hit hard by Hurricane Harvey last month, has the largest rainy day fund of any state – $10 billion – but state officials are keeping that as a last resort. That could include tapping into money already allocated to state agencies.All but a handful of states maintain so-called rainy day accounts, but in most cases "rainy day" is a misnomer: The money is typically used to get through economic downturns rather than responding to natural disasters.In addition to budget reserves, 28 states have established special funds to help residents and businesses after a disaster.Even putting money into a dedicated disaster fund may not be enough.At a time when tax revenue is down, the state has depleted its reserves and emergency funds and plans to cut programs and services to fill a projected $227 million budget shortfall.
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