Lawmaker Calls For Ending Local Government Property Insurance Fund

nygrenAccording to Wispolitics, Joint Finance Committee Co-Chair Rep. John Nygren (R-Marinette) is calling for the end of the Local Government Property Insurance Fund (LGPIF), which makes property insurance available for local governments including school districts.

As part of its 2017-19 budget request, the Office of Commissioner of Insurance has proposed issuing no new property insurance policies and not renewing existing ones through the LGPIF in an effort to phase it out.

Over a year ago, the Legislative Audit Bureau found the fund’s net position was a deficit of $703,000.  Nygren said the state auditor has now reported the number of insured entities has dropped from 983 to 174, while premiums went from $23.1 million to $3.2 million.

Last budget cycle the governor proposed eliminating the LGPIF but after lobbying from the WASB and others it ultimately survived albeit with increased premiums to keep the fund solvent.