State catastrophe fund may see glimmer of relief.

Byline: LLOYD DUNKELBERGER H-T Capital Bureau

Improving credit markets may ease the potential financial crisis the state faces as another hurricane season approaches.

State investment officials told Gov. Charlie Crist and the Cabinet on Tuesday that they now believe they can borrow up to $8 billion to fund the state hurricane catastrophe fund after a major storm.

The potential bonding is a $5 billion improvement over their previous estimate, meaning the state may face a shortfall -- in a worst-case scenario -- of $13 billion in the coming year, rather than $18 billion.

To make up the remainder of the shortfall, the state Board of …