Orlando Sentinel
By Tom Feeney
February 26, 2012
With only two weeks left of the legislative session and 15 weeks until hurricane season starts, Floridians need leadership from our Legislature to ensure we’re not relying on luck to protect us from the state’s mammoth unfunded insurance risks.
Florida TaxWatch’s independent research, expert reports, legislative hearings and testimony before the Cabinet have sounded alarming wake-up calls about the overexposed financial position of the state-run Florida Hurricane Catastrophe Fund. As in three of the past four years, the CAT Fund faces a shortfall, which could be $3.2 billion or more, posing an unacceptable risk to the state. Reform is needed now.
Senate Bill 1372 and House Bill 833 are thoughtful legislation based on a proposal by the CAT Fund’s chief operating officer, Jack Nicholson. These bills, which aim to right-size the fund, are necessary legislation supported by business, consumer and environmental groups as well as Floridians throughout the state, including the Florida Chamber of Commerce, Florida Consumer Action Network, Florida Wildlife Federation, Florida TaxWatch and The Heartland Institute.
Sen. J.D. Alexandersaid this month: “If we allow this state to put ourselves in devastating financial condition because we have obligated beyond our ability to pay, shame on us.” With leadership from Alexander and committee Chair Garrett Richter, the Senate Banking and Insurance Committee wisely voted in favor of SB 1372.
Rep. Bill Hager has championed identical legislation in the House. We urge the rest of the Legislature to make reform of the CAT Fund a top priority now.
Tom Feeney President and CEO, Associated Industries of Florida
