$960M in Unanticipated Fla. Revenue Could Provide Rate Relief

The Florida General Revenue Estimating Conference has released new estimates stating Florida is expected to receive an additional $960 million in unanticipated revenue this year and the next. This estimate is in addition to the $3.2 billion in increased revenue announced by the Revenue Estimating Conference last November.

“This surplus of nearly $4.2 billion strengthens the case for providing immediate insurance rate-relief to Florida’s homeowners,” Tom Gallagher, Florida’s CFO said. “Providing rate relief for Florida’s families using surplus tax dollars is good public policy and I’m encouraged by the growing support for it from Governor Bush and state lawmakers. This is not a bailout of Citizens; it is common-sense relief for Florida’s hard-hit homeowners.”

Since 2004, Gallagher has been calling on the Legislature to use surplus tax revenues to offset any assessments by Citizens Property Insurance Corporation, rather than taxing Floridians twice for the damages incurred by multiple hurricanes. When the Legislature created Citizens, the state’s insurer of last resort, it mandated that any shortfalls in revenue be recovered through assessments on homeowners.

“Rate relief is a short-term solution and should be tied to long-term fixes,” Gallagher said. “I applaud Governor Bush and state lawmakers for considering my proposals to provide relief to homeowners as well as long-term, comprehensive reforms of Citizens and our insurance market.”

“The eight hurricanes which stuck Florida in less than 15 months created problems that no one could have ever anticipated,” Gallagher said. “Addressing those challenges, reducing the burdens on Florida homeowners and preparing Florida’s families for future storms remain my top priorities this session.”

Topics Florida Profit Loss Homeowners A.J. Gallagher