Citizens borrowing plan stalls in Bond Commission - FOX 8 WVUE New Orleans News, Weather, Sports

Citizens borrowing plan stalls in Bond Commission


BATON ROUGE, La. (AP) - State officials have stalled a decision on whether the state's property insurer of last resort should borrow $100 million to help close an anticipated budget gap.

The Bond Commission, which includes lawmakers and statewide elected officials, didn't take any action Thursday 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.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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