Insurance tops agenda

Insurance tops agenda

Florida Governor-elect Charlie Crist jumped tracks en route to fulfilling his pledge to make his "anti-murder" bill the first order of business. Now, he is focusing on an issue with broad economic implications: Insurance.

The insurance jam threatens the health of the Gulf Coast's construction industry - one of the primary engines in our economic vitality.

It won't be an easy issue. Two awful hurricane seasons left billions in damage and insurance companies have been either high-tailing it out of the state or jacking up premiums, sometimes several hundred percent. For homebuilders, it could worsen the construction downturn. For commercial structures, it could drive up prices and drive out smaller businesses, or leave some companies without any wind coverage. That latter would have devastating consequences in the event of major hurricane.

But lawmakers have laid out no clear vision for solving the crisis. Options range from de-regulating the industry so it will allow more unfettered competition, to creating yet more state-funded - that is, ultimately, taxpayer-backed - safety nets, to establishing far more regulation to require companies that provide car insurance to also provide structural insurance.

Gov. Jeb Bush and state legislative leaders have talked about calling a special session before the regular Spring session of the Legislature to find a solution. That would probably have to be done by Nov. 24. But Bush has said that he will not do so unless there is an obvious consensus on how to act.

On possible area he suggested for broad agreement is to create a mechanism that would make it easier for insurers to tap into the state's pot of money set aside to pay for catastrophic losses - the expanded safety net option. It's not clear there is support for that.

All of which means that it is going to fall to Crist to lead to a resolution.

Watch for more - a lot more - on this issue in coming months.

Tax Revenues

It was inevitable, but the first estimates are in: The real estate slowdown is slowing revenues into state coffers.

State economists are estimating that, for the 2007-08 fiscal year, legislators will have about $466 million less than previously estimated. However, that estimate is still a $2.3 billion increase from this year and brings estimated state revenues to nearly $74 billion.

The Legislature's Office of Economic and Demographic Research pegs most of the decline on a reduction in the documentary stamp tax, which is assessed on all real estate transactions.

- Rod Thomson