The state of Louisiana offers an insurance plan of last resort to homeowners who can't get insurance from regular commercial sources. Guaranteed by the state the citizens plan perfromed poorly in claims processing after the storm and required a bailout by the state when they found themselves $1.5 billion in the hole financially.

By tacking a 15% surcharge onto homeowners insurance statewide the state got the money for a bailout. But now the state wants to refund the surcharges. So the legislature decided to offer a tax credit. Insured citizens filing their 2007 taxes had the opportuinty to claim any surcharges in 2006 as a credit against the amount due.

The change was so well publicized (not) and so straightforward that in July 2007 the state is wondering why it is still holding $100's of millions that it expected to refund.