An idea put forth by some lawmakers is to move expected state budget surplus into the insurer. Citizens was established in order to “offer homeowners insurance to those who can’t get it on the open market.” Citizens is currently charging “private insurance companies a regular fee they can pass onto all their Louisiana customers to pay off Citizens’ borrowing to cover hurricane claims.”
Blanco has met with representatives of Citizens and was not asked for assistance because they “believe they are stable with the borrowing that’s been done through bond sales.” However, Blanco is considering ways to assist Citizens in paying off its debts.
Apparently Louisiana is swimming in extra money, an estimated $700 million, “from sales, income and gambling tax revenue as well as booming oil and gas prices that are helping to boost the budget.”
Citizens has received over 63,000 Katrina claims and another 12,000 after Rita with around three thousand still open or pending. The average payout seemed low to me, $15,476 for Katrina and $9,035 for Rita, considering the damage incurred.
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