Welcome to

Florida Lawmakers are back in Tallahassee today for the beginning of a ten day special session to cut the budget. While the focus is on the budget, Mike Vasilinda tells us there is also maneuvering on property taxes and saving the no fault auto insurance program.

Hear it Here: Session Underway

This is the third special session of the year.

A fourth is yet to come.

This time, lawmakers will cut a billion dollars from the state.  Schools will lose less than 2 percent. The Governor says that can be done without hurting the classroom.  “Now, maybe administration, is a different thing.” says the Governor

Even with a billion dollar cut, most state agencies will still have more money than they had last year…..their increase just won’t be as big. College students could also see a 5% tuition hike in January…although the governor is leaning towards a veto.  “I know people have had to pay more for property taxes and property insurance,” says Crist, “and I don’t want to burden them anymore…I mean, my heart bleeds for the people. So, Um but some very smart people are giving me good advice.”

There are also plans to tackle no fault auto insurance. Florida’s law expired Monday and there is a special interest food fight over reenacting the law.  Sen Steve Geller says anything could happen “Ever watch the juggler go from three balls to four balls. We’re at five up in the air now with PIP. There are so many different options out there, that anybody who tells you they know what’s going to happen is lying.”

Behind the scenes, major discussion on what to do about property taxes. As soon as this session is over, Legislators will be back almost immediately to tackle the tax issue.

Lawmaker are here to cut the budget, and maybe fix PIP. But it’s tax breaks on everyone’s mind. Even House Speaker Marco Rubio is looking pas the current special session

“That’s why I believe it’s the fairest tax out there because you determine based on how much you have. There are a lot of other taxes out there that take money away from you even if you can’t afford to pay it. So there is no doubt if your argument is that the property taxes is the more stable source of taxation, I don’t disagree with that at all it is more stable. The reason why it is more stable is you have to pay it even if you can’t afford it. That’s what makes it so stable is that it is inherently unfair. It is the only tax repayment that has nothing to do with your ability to pay it. So yeah, sales tax is bad for government, But it is good for people.”

Rubio would like to see either an amended or new property tax proposal on the ballot January 29^th.

This is what Charlie Crist said in response to the Democratic complaints about the school budget being cut:

“I think there is a distinction to be aware of, the most important thing in the schools are what, the students. So our obligations is to make sure that any of these reductions, that’s another important point, the only reductions and what greater increases may have been so no real cuts there’s just a little less of an increase so that’s important for  your viewers. I think it’s important to realize that any reductions that may occur in education should not affect students and what goes to them, now maybe administration is different thing.”

            T

Public schools have been promised for months to be held “harmless” during this budget cutting session. Governor Charlie Crist has recently changed his choice of words to “as harmless as possible”. On the first day of the special session to cut the budget, house Democrats were crying foul while the governor was suggesting classrooms would be okay. Minority Leader Dan Gelber is complaining about double speak from the GOP controlled legislature “By the end of the day it going to be a very hard road to accept over 300 million dollars in cuts to education. And I think what people ought to know is that every year we come here, and its as early as the property tax session, you heard Republicans stand here on the floor, and say We will hold education harmless. And the moment the rubber hit the road, almost the first thing that goes is almost a half a billion education dollars,” says Gelber.

Charlie Crist remains optimistic. He believes the cuts will not impact the classroom and the quality of public education in this state.

Governor Charlie Crist vowed again today to keep some 50 insurance companies who have requested rate increases from raising their rates on homeowners insurance.  The companies filed what is called a “true up” on Monday. They averaged increases of almost 27 percent, while another 13 companies said they would lower insurance by just under 7 percent. The governor thinks those trying to raise rates are breaking the law.

“You know, we’re turning down their rate increase request. Those are being denied by our commissioner and I’m very proud of Kevin McCartney’s work. But I think we need to stay on the industry. We have subpoenas out to the insurance industry in this country that deal with Floridians and we want to make sure that when we get the responses to those subpoenas, that they’re adhering the the letter of the law, the great reform that passed last January. And what that law says is that they have to pass on savings by buying their reinsurance, their own insurance for the insurance company that they can now get from Florida, they have to pass those savings on to the customer. They’re not doing that, and if they’re not doing that we believe that may be a violation of the law.”

Another 19 companies filed documents saying htey wanted to keep their rates as is. Going through the information being subpoenaed could take several months.

The Office of Insurance Regulation has released the filings of the first 82 insurance companies to file rate information under a new law. 50 of the 82 are seeking increases averaging 26 point 3 percent, 19 are seeking no increase, and 13 more are asking their rates be reduced an average of 6 point seven percent. For one million homeowners, Mike Vasilinda tells us the state’s second largest company is lowering its rates slightly.

Hear it Here: 50 Insurers Seek Increases

One million State Farm customers will see a 2 percent decrease in their homeowners insurance. The decrease is part of a settlement with the state that also includes a 23 million dollar refund. The Refund is a result of State Farm overcharging on assessments from the 2004-2005 hurricane losses. Ed Domansky from the Office of Insurance Regulation says State Farm will no longer require homeowners to buy their auto insurance as well. “ They have reassessed that and will no longer tie the requirement to have another policy to homeowners before they make a decision to not renew a customer,” says Domansky.

Meanwhile, the state continues to review hundreds of other insurance company filings that came in at the close of business Monday. Allstate is among those seeking large increases while some other companies have slight decreases.

For the second day in a row Charlie Crist intimated that companies asking for rate increases are going to be out of luck. Crist contends the industry is raping consumers.
“I just found out yesterday, that in the last three months, they made 32 billion dollars. I don’t know what’s going on, but it’s like…ridiculous,” say Crist.

None of the higher rates being proposed will go into effect without state approval. Working through the rate requests..and even decreases…could take months.

Coining the phrase, Protecting Injured People, the sponsor of legislation to reinstate no fault auto insurance, or PIP, which expired at midnight Sunday, says his legislation will set fee schedules for treatments. One of the complaints with the old system is that it did not set a schedule of payments for treatments and that resulted in some taking advantage and overcharging the system. Now, state Senator Bill Posey says companies had better pay or else.   “Under the new system, you get 30 bucks for an ice pack. Pay the 30 dollars. If you don’t pay it, you’d better be prepared to prove the claim of fraud.  Insurance is no good to consumers if companies don’t pay it…don’t pay claims. So that’s the balance that we have to put in here, and that’s in here. . This bill is totally consumer friendly.”
Even with the changes, Posey says there is no guarantee lawmakers will act to save No Fault. He says special interests are working as hard as he has ever seen against the legislation.

State Farm Mutual Auto Owners will pay a one point five million dollar fine to the state of Florida for failing to let auto insurance customers know they had a less expensive alternative without leaving State Farm.  As many as 200 thousand auto policy holders could benefit from the change. Office of Insurance Regulation spokesman Ed Domansky says the savings amount to a hundred to 200 dollars per year. “What State Farm should have been doing is letting their policy holders know that they could have moved to the less expensive mutual company rather than remain in what is the more expensive fire company or standard company.” says Domansky.

State Farm will begin notifying auto policy holders of their options immediately under the settlement.

U-S Senator and Presidential hopeful John Mc Cain was at the state capitol for a meeting with Governor Charlie Crist. It is the second time this year the Arizona Senator met with Crist as governor. Mc Cain says he’s hoping for a Crist endorsement, but that has not yet been forth coming. Crist will say only that he likes Mc Cain..a lot. Mc Cain also made it clear he was aware of what is important to Floridians. “In the case of Florida and California, they have decided they don’t want off shore drilling…at least anywhere near the coast. In the case of the Everglades, the people of Florida have decided they don’t want that tampered with for a variety of reasons…and I totally agree. And I do not believe in drilling in the Grand Canyon, either!”

When it comes to a national catastrophic fund, Mc Cain said he would prefer to leave that to the states, but did leave the door open by saying he’s willing to listen.

Marijuana growers could soon face stiffer penalties, especially those who grow pot in homes near where children live. The proposed law specifically targets hydroponic marijuana, which can have a 15% higher potency level then field grown marijuana. This breed of marijuana is typically grown indoors which makes it tougher for law enforcement to locate and more of a danger for the communities and families around it.
Attorney General Bill McCollum says the problem is growing.

“If you rate this the percentage of THC in marijuana the traditional marijuana plants is about 8 – 10%.  These are 20% to 30% THC, Now this is a very serious matter as far as what we see going on with these plants. The damage they do with a single plant the amount of power and danger that’s in a single plant and that is why this legislation is really important. It’s a huge growing problem and you can’t let the laws lag behind the legal enforcement in this area.” says the Attorney General.

In 2006, law enforcement found cannabis growing in houses in 41 of Florida’s 67 counties. This makes Florida second in the nation in regards residences used to grow marijuana.

By the end of business today, some 300 insurance companies doing business in Florida are required by law to show how much consumers will save because the state is taking on more of the risk of hurricanes. But as Mike Vasilinda tells us, mot companies are waiting until the 11th hour…while some big ones are asking for more…not less.

Hear it Here: The Ups and Downs of Insurance Rates

Only half of the Insurance companies doing business in Florida had complied with a new rate filing law by the beginning of business Monday. Insurers are supposed to pass savings on to consumers from the states assumption of 15 billion in risk. Edward Domansky of the Office of Insurance Regulation says so far, the results are mixed.

“We’ve seen some increases. We’ve seen some decreases, and we’ve some who are at zero based on their original filing from March.” says the spokesman for OIR.

The biggest surprise to date is Allstate’s request for an average 42 percent hike with another 28 percent hike for a subsidiary. The filings come at the same time the state has issued subpoenas to companies, trying to find out why rates haven’t gone down more dramatically.

When asked about the filings, Governor Charlie Crist was pointed. “It does look like a violation of law when they put in for increases and don’t pass on the saving they’re supposed to do under the great reforms Senate President Pruitt and Speaker Marco Rubio had the courage to put through in the special session in January.” says the Governor.

The good news for policy holders is that no rate hikes will take effect until they are approved…which the governor says is doubtful. “I don’t think those increases will be approved, so they won’t have to pay it.” Says Crist.

Some of the rate hike requests are being driven by insurance ratings services who are also under investigation for possible collusion in setting rates.

Governor Charlie Crist added Personal Injury Protect to the agenda of the special legislative session beginning later this week. Key lawmakers had balked at adding the no fault insurance requirement, which expired at midnight this morning. But Crist has said all along that it was important. When lawmakers didn’t add it to their agenda, Crist did, although there are still questions about whether there is enough of an agreement about what to do. Pressed for specifics of what he wants, Grist told reporters “Representative Bogdanoff and Senator Posey have done great work. They have a product they have confidence in, ah, that they mutually agree on, so I think we are in a good place, ah, you never know. They have to get here, they have to vote and all that stuff.  I think it looks pretty good.”

Later in the news conference, Crist called no fault and “easy lift” but Senate President Ken Pruitt says there is no agreement and it will be up to House and Senate members to decide if anything is done.

Fixing problems in the Property tax Amendment ruled unconstitutional by a Circuit Judge may be too controversial to take up in the special legislative session called to trim a billion dollars from the budget, so Charlie Crist and the House Speaker and Senate President say lawmakers will meet in a Special Session sometime before the October 29th deadline to put an amendment on the ballot to work out the language for voters.  Asked if he thought changes in the amendment langauge were needed, Crist responded “You know, it has to be something the people want. They’re the boss, and ah, and something that gives them the need. The theory here is that we fire the economic engine that is Florida.”

Crist believes by cutting taxes, citizens will spent the money they save on consumables, which will spur economic growth.

As state lawmakers get ready to cut more than a billion dollars from the state budget, some groups , like the developmentally disabled say cuts to their program are short sighted and will result in the state actually spending more in the long run.  Debra Dowds, Exec Director of the Florida Developmental Disabilities Council calls any cuts shortsighted.  “People are going to have to move to a more restrictive setting, and often that setting is outside the home, where they were getting very good care, and some of these people are worried about the care they are going to get in these other settings.”

Lawmakers begin their budget cutting session Wednesday in Tallahassee.

Today was the fist meeting of the Children’s Cabinet. The group crosses departmental lines and is charged with coming up with the best ways of implementing programs for children. DCF Secretary Bob Butterworth says the group will help cut down on red tape and improve services. “We have so many agencies and entities that deal with children and we just don’t talk to each other. So we hope will come out in a very sort period of time is a guideline of how we are going to deal with children in the state of Florida in a seamless fashion” says the DCF Secretary.

The Children’s Cabinet was created by State Lawmakers this past spring.