Politics
Weekly Roundup: Sinkhole Black Hole
Recap and analysis of the week in state government
Around the State
Florida officials this week made sinkhole rates go higher and hoped prison costs would go lower in an effort to save state taxpayers money on both.
Sinkhole coverage got a lot more expensive for tens of thousands of coastal residents who will see their rates leap toward the heavens as state insurers this week tried to make up for decisions made a few years ago that critics say were politically expedient, but actuarially irresponsible.
With losses far outstripping premiums as claims exploded in recent years, the state-backed insurer of last resort says it has to charge more for less.
Meanwhile, Florida prisons officials are hoping to pay less for more as they privatize prisons in the southern third of the state.
Corrections officials had a busy week, also spending time in court defending the state's recipe for a lethal cocktail of drugs used to execute death row inmates.
And while debt ceilings and default were on the tongues of most politicians, Florida lawmakers spent some time on the road this week getting input from the vox populi on how to fairly redraw political boundaries while addressing the needs of minority candidates and communities of interest.
Meanwhile, state officials had to defend themselves against allegations of unfairness and ineptitude over the firing of allegedly incompetent insurance fraud investigators, and an initial slate of inductees to the state's newly established Veterans Hall of Fame that included confederates and not a single veteran of color.
CITIZENS APPROVES RATE HIKES TO FILL SINKHOLE BLACK HOLE:
Citizens Property Insurance Corp.'s board of governors on Wednesday unanimously approved sinkhole premium increases for 2012 that will cause rates for coastal homeowners to skyrocket, some by thousands of dollars a year.
"We recognize that the need for sinkhole coverage is enormous," said Citizens CFO Sharon Binnon. "This fact is not lost on us but this is about Citizens' past experience … These rates are the direct result in the explosion of claims."
Sen. Mike Fasano, R-New Port Richey, whose region will see some of the highest premium increases for sinkhole coverage, has led the charge against the rate hikes. He continued his quest this week.
“There are people who live in sinkhole-prone areas that could potentially be forced out of their homes due to these rate increases,” Fasano said in a statement.
Pasco County coastal residents, according to Citizens' estimates, will see average sinkhole premiums jump from $441 to $4,017, an increase of 810 percent for the optional coverage.
Last year, Citizens collected about $32 million in sinkhole premiums but paid out more than $245 million in claims. Insurers blame the increase not on a geological change, but savvy attorneys, public claims adjusters and inadequate protections in Florida law.
Sen. Charlie Dean, R-Inverness, has joined Fasano in calling for public hearings on the proposed rate increases.
PRIVATE PRISONS, PUBLIC GOOD?
Calling it a prudent experiment – although one that should not expand further until the facts are in -- the state's top prison official this week moved the state forward on its plan to privatize prisons in the southern third of the state.
Corrections Secretary Ed Buss said in an interview this week that after this round, the state should stop until it knows what the effect is.
"I think in terms of private prisons, this is as far as Florida should go," Buss told the News Service. "This wasn't my decision, this wasn't Governor Scott's decision. This was the Legislature's decision."
The state on Monday released a request for proposals calling for a five-year contract with a single bidder to run 29 facilities associated with 11 South Florida correctional institutes. One of the state's main law-enforcement unions has sued to try to block the move.
That contract should allow the state to assess how a widespread system of private prisons would work in comparison to public facilities, Buss said. That would include a look at how well private prisons work to reduce recidivism, one of Buss's top goals as corrections secretary.
Sinkhole coverage got a lot more expensive for tens of thousands of coastal residents who will see their rates leap toward the heavens as state insurers this week tried to make up for decisions made a few years ago that critics say were politically expedient, but actuarially irresponsible.
With losses far outstripping premiums as claims exploded in recent years, the state-backed insurer of last resort says it has to charge more for less.
Meanwhile, Florida prisons officials are hoping to pay less for more as they privatize prisons in the southern third of the state.
Corrections officials had a busy week, also spending time in court defending the state's recipe for a lethal cocktail of drugs used to execute death row inmates.
And while debt ceilings and default were on the tongues of most politicians, Florida lawmakers spent some time on the road this week getting input from the vox populi on how to fairly redraw political boundaries while addressing the needs of minority candidates and communities of interest.
Meanwhile, state officials had to defend themselves against allegations of unfairness and ineptitude over the firing of allegedly incompetent insurance fraud investigators, and an initial slate of inductees to the state's newly established Veterans Hall of Fame that included confederates and not a single veteran of color.
CITIZENS APPROVES RATE HIKES TO FILL SINKHOLE BLACK HOLE:
Citizens Property Insurance Corp.'s board of governors on Wednesday unanimously approved sinkhole premium increases for 2012 that will cause rates for coastal homeowners to skyrocket, some by thousands of dollars a year.
"We recognize that the need for sinkhole coverage is enormous," said Citizens CFO Sharon Binnon. "This fact is not lost on us but this is about Citizens' past experience … These rates are the direct result in the explosion of claims."
Sen. Mike Fasano, R-New Port Richey, whose region will see some of the highest premium increases for sinkhole coverage, has led the charge against the rate hikes. He continued his quest this week.
“There are people who live in sinkhole-prone areas that could potentially be forced out of their homes due to these rate increases,” Fasano said in a statement.
Pasco County coastal residents, according to Citizens' estimates, will see average sinkhole premiums jump from $441 to $4,017, an increase of 810 percent for the optional coverage.
Last year, Citizens collected about $32 million in sinkhole premiums but paid out more than $245 million in claims. Insurers blame the increase not on a geological change, but savvy attorneys, public claims adjusters and inadequate protections in Florida law.
Sen. Charlie Dean, R-Inverness, has joined Fasano in calling for public hearings on the proposed rate increases.
PRIVATE PRISONS, PUBLIC GOOD?
Calling it a prudent experiment – although one that should not expand further until the facts are in -- the state's top prison official this week moved the state forward on its plan to privatize prisons in the southern third of the state.
Corrections Secretary Ed Buss said in an interview this week that after this round, the state should stop until it knows what the effect is.
"I think in terms of private prisons, this is as far as Florida should go," Buss told the News Service. "This wasn't my decision, this wasn't Governor Scott's decision. This was the Legislature's decision."
The state on Monday released a request for proposals calling for a five-year contract with a single bidder to run 29 facilities associated with 11 South Florida correctional institutes. One of the state's main law-enforcement unions has sued to try to block the move.
That contract should allow the state to assess how a widespread system of private prisons would work in comparison to public facilities, Buss said. That would include a look at how well private prisons work to reduce recidivism, one of Buss's top goals as corrections secretary.
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