Without any floor debate Tuesday, the Mississippi House of Representatives on a voice vote approved an extra $20 million to be pumped into the state wind pool in hopes of lowering rates.
The appropriation for the Mississippi Insurance Department, which included the wind pool money, would set aside a total of $40 million for the government insurance program for fiscal year 2010. The wind pool is “insurance of last resort” for homeowners who can’t get wind coverage from the private sector.
A few years ago, the Legislature set aside a total of $80 million for the program over several years, including $20 million for fiscal 2010. But recently Ron Peresich of the Gulf Coast Business Council and other leaders have asked for an additional $60 million over the next few years, which would bring the total to $140 million. The money is aimed at offsetting premium increases.
House Appropriations Chairman Johnny Stringer, D-Montrose, said Tuesday much money was given to the state after Hurricane Katrina, but the Coast still needs help. He believes the extra $20 million from the budget contingency fund this year is worth the expense to help stimulate the Coast’s economy.
“I think we’ll get our money back in taxes,” Stringer said.
Magnolia Tribune
