BATON ROUGE – Commissioner of Administration Kristy Nichols announced today that the state has reached an agreement to receive $95 million from commercial property insurance payments related to property losses sustained from hurricane damage. At the direction of Governor Bobby Jindal, Commissioner Nichols will propose that a portion of these funds be deposited into the Rainy Day Fund.
“Today’s announcement marks the culmination of months of hard work to secure funding owed to the state. As we continue to reduce the size and cost of government, we will continue to maximize dollars available to the state rather than make further unnecessary cuts to higher education and healthcare,” Commissioner Nichols said.
Act 597, as passed by the Legislature, directed that $56 million from insurance proceeds or tenders would be transferred to the state’s General Fund, with funds exceeding that amount to be transferred into the state’s Overcollections Fund. Instead, at the order of Governor Jindal, Nichols said the administration is committed to working with the Legislature to transfer $39 million to the Rainy Day Fund.