State insurance departments are showing overall growth in budget levels over the past few years, with some significant highs and lows, according to the just-released National Association of Insurance Commissioners (NAIC) statistical report.
Overall, state budget levels for fiscal year 2014 are expected to rise by 0.04 percent from 2013 amounts, and to increase by 4.8 percent from 2010 amounts, according to the study, Insurance Department Resources Report 2012, Volume 2.
Total projected fiscal year 2014 budgets are $1.3 billion.
About half the U.S. jurisdictions — 26 of them — reported increased 2014 budget amounts from their 2013 reported budgets.
Thirteen states’ fiscal year budgets declined over the four year period, from fiscal years (FY) 2010 to 2014. The majority rose, and the majority of those rose by double digits, the data show.
States that rose significantly in budget funds over the four years tended to be states with a smaller revenue base. The largest increase begins with Vermont, which tallied a 70.13 percent increase to almost $11 million for FY 2014, and Oklahoma, which rose 44 percent to a FY high of $15.5 million, and Montana’s 40.13 percent rise to almost $5.44 million.
For declines, the Florida Insurance Department stands out. Florida’s budget suffered a drop of 30.47 percent between FY 2010 and FY 2014, from $116 million to almost $80.65 million. Interestingly, Florida’s insurance industry premium volume has risen incrementally since 2009 to almost $112.72 billion. Budget funds come from a variety of sources, including assessments, premium taxes, federal grants, unclaimed checks, interest and investments, fines and special funding. Overall, the budget as a percent of revenue is 6.63 percent, falling to 2005 levels from a larger share of almost nine percent in 2009.