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Citizens borrowing plan stalls in Bond Commission

3 years 6 months 1 week ago March 21, 2013 Mar 21, 2013 Thursday, March 21 2013 March 21, 2013 1:13 PM in News
Source: Associated Press

BATON ROUGE- A decision on whether the state's property insurer of last resort should borrow $100 million to help close an anticipated budget gap has stalled in the Bond Commission.

The commission, which includes lawmakers and statewide elected officials, didn't take any action today on the request from the board for the Louisiana Citizens Property Insurance Corp.

Gov. Bobby Jindal's top financial adviser Kristy Nichols and Insurance Commissioner Jim Donelon disagree with the borrowing plan, saying Citizens has money available to cover its immediate costs.

The borrowing would be done by selling bonds to investors for upfront cash.

But the debt would be paid off through assessments on anyone with property insurance on the private market. It also could cost the state, because the assessment can be claimed as a tax rebate.

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