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FLORIDA CHIEF FINANCIAL OFFICER
ALEX SINK'S
WEEKLY NEWSLETTER
Volume 5, Number 33,
August 15, 2008
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Fellow Floridians:
It is only the second week of August, and already we have
some tropical disturbances in the Western Caribbean that
could threaten Florida as early as next week. The closest
storm is currently moving westward, and you can monitor its
movement by visiting
www.weather.gov or
www.floridadisaster.org. If the system remains intact
and continues along its current path, it could reach the
Keys or Gulf Coast next Monday or Tuesday.
As Floridians, we are all too familiar with natural
disasters, and these storms are a valuable reminder about
the importance of being prepared. From stocking food and
other supplies to updating your disaster plan to ensuring
you are financially prepared, please take some time this
weekend to make certain you are ready.
For additional information about creating or updating your
disaster plan, please visit
www.floridadisaster.org. For information about creating
or updating your financial plan, please click on the
Tool Kit.
You can also contact our consumer services helpline Monday
through Friday at 1-877-MY-FL-CFO.
CFO
SINK CREATES “FINANCIAL ACTION TEAM”
Broad coalition will identify funds available from
federal foreclosure assistance legislation
In an effort to increase the amount of aid to Floridians facing economic
crisis, Chief Financial Officer Alex Sinkannounced she has created a
“Financial Action Team” to identify federal assistance available to our
state. Comprised of a broad array of financial and housing stakeholders,
CFO Sink’s Financial Action Team will analyze the recently passed
Housing and Economic Recovery Act of 2008 to maximize Florida’s share of
the billions in available federal dollars to help taxpayers weather a
range of economic challenges.
“We are facing an economic and housing crisis, and the federal
government has made billions of dollars in assistance available to
benefit homeowners,” said CFO Sink, who oversees the Department of
Financial Services. “As Florida’s Chief Financial Officer representing a
state with one of the highest rates of foreclosure and numbers of lost
jobs, I want to make sure our taxpayers get their fair share of help.”
RealtyTrac's July 2008 U.S. Foreclosure Market Report stated that
Florida had the second highest number of foreclosures in the nation,
posting 45,884 foreclosures in July 2008—a 14 percent increase from the
previous month. Florida’s foreclosure rate was the third-highest in the
country, with one foreclosure for every 186 households.
The Agency for Workforce Innovation (AWI) Friday reported a 6.1 percent
unemployed rate, the highest since January 1995. Florida lost 96,800
jobs during the previous year, and has reported negative growth over the
previous year since September 2007, which AWI attributes to a decline in
construction.
These economic challenges are compounded when Florida’s taxpayers aren’t
receiving their fair share of benefits. According to TaxWatch, Florida
has lost billions in federal funding due to a failure to identify,
document and leverage these resources.
“The value of educating citizens, businesses and government officials on
what federal funds, tax incentives and services are available to Florida
under the Housing and Economic Recovery Act of 2008 cannot be
overstated,” said Dominic Calabro, President and Chief Executive Officer
of Florida TaxWatch. “Florida TaxWatch is proud to work with CFO Sink on
this crucial effort, and I believe the Financial Action Team will
improve taxpayer value and ensure the safety and prosperity of countless
Floridians.”
The Financial Action Team will hold its first meeting in early
September, and in preparation for the meeting, members are expected to
evaluate the Housing and Economic Recovery Act from their stakeholders’
perspective and report on the benefits available to Floridians. Members
will also identify and report on the process by which a citizen can
apply for and receive these federal benefits. The Financial Action Team
will reconvene in late September to develop thorough outreach efforts to
educate Floridians about the federal benefits for which they are
eligible.
CFO Sink’s Financial Action Team includes representatives from the
following organizations:
•
Florida Bankers Association
• Florida Credit Union League
• Florida Housing Finance Corporation
• Florida Association of Realtors
• Florida Legal Services
• Florida League of Cities
• Florida Association of Counties
• Department of Veterans’ Affairs
• City of West Palm Beach
• Florida Tax Watch
• Florida Association of Mortgage Brokers
• Department of Financial Services
All
meetings of the Financial Action Team will be announced and open to the
public.
REP. AUSLEY APPOINTED
CHAIR OF HEALTHY KIDS BOARD BY CFO SINK
Ausley is a statewide champion for children’s issues
Calling upon one of the state’s leading children’s
advocates, Chief Financial Officer Alex Sink today announced
she has appointed State Representative Loranne Ausley to
serve as the Chair of the Healthy Kids Board, effective
after her fourth legislative term.
During her first 20 months in office, CFO Sink personally
served as the Healthy Kids Board Chair, successfully
navigating the Florida Healthy Kids Corporation through its
first leadership change and identifying measures to
streamline the program and make it easier for Florida’s
families to purchase children’s health insurance.
“I’m proud today to appoint an accomplished public servant
with a passion for improving the lives of Florida’s
children,” said CFO Sink, who oversees the Department of
Financial Services. “With Loranne leading the Healthy Kids
Board and helping improve the Healthy Kids program,
Florida’s families have a strong advocate at their side.”
“What an honor to be able to serve the children of Florida
in such a critical role as we work to ensure that all
children in Florida have access to affordable health care,”
said Rep. Ausley. “The KidCare program is one of the best
ways to ensure that hard working families can provide health
insurance for their children. As Chair, I will continue to
work with the Board, the Legislature, advocates and partners
to make the process easier for families, and to make sure
that we are maximizing our draw down of federal dollars.”
The Florida Healthy Kids program is a public-private
partnership that allows Florida’s families to purchase
health insurance for their children. Florida Healthy Kids is
a component of the larger Florida KidCare program, which
serves nearly 1.4 million children.
Approximately 250,000 children are enrolled in Florida
Healthy Kids, and their coverage includes regular doctor
visits, dental check-ups and immunizations. For more
information about enrollment in Florida KidCare, visit
www.floridakidcare.org to apply on-line or call
1-888-540-5437 to receive an application by mail.
CFO SINK HONORS MY SAFE FLORIDA HOME WITH
A CABINET RESOLUTION
The My Safe Florida Home (MSFH) program was created in 2006 by the
Florida Legislature to assist Floridians in strengthening their homes
against hurricane damage through free wind inspections and grants up to
$5,000. Last year, the Legislature set a goal for the MSFH program to
perform 400,000 free wind inspections for eligible homeowners.
As of August 1, 2008, more than 400,000 homeowners have applied for a free
wind inspection in order to learn what they can do to harden their homes
against storm damage and how to save money on their wind insurance premiums.
To date, the MSFH program, including local government and non-profits, has
approved grants for approximately 38,889 homeowners and has paid 18,465
grants to homeowners totaling more than $62.9 million. Sixty percent of
homeowners statewide who received a free wind inspection are eligible for an
average savings of $220 on their wind insurance premiums
R E S O L U T I O N
WHEREAS, during the 2004 and 2005 hurricane
seasons, Florida was ravaged by eight named storms causing more than $38
billion of insured damage to homes and property; and
WHEREAS,
in response to these catastrophic losses, the My Safe Florida Home (MSFH)
program was created in 2006 by the Florida Legislature to assist Floridians
in strengthening their homes against hurricane damage through free wind
inspections and grants up to $5,000; and
WHEREAS, in 2007, the
Legislature set a goal for the MSFH program to perform 400,000 free wind
inspections for eligible
homeowners; and
WHEREAS, as of
August 1, 2008, more than 400,000 homeowners have applied for a
free wind inspection in order to learn what they can
do to harden their homes against storm damage and how to save money on their
wind insurance premiums; and
WHEREAS,
sixty percent of homeowners statewide who received a free wind inspection
are eligible for an average savings of $220 on their wind insurance; and
WHEREAS, today, the MSFH program, including local government and
non-profits, has performed 360,337 inspections totaling $54 million,
approved $152 million in grants for approximately 37,592 homeowners and paid
19,364 grants to homeowners totaling more than $67 million.
NOW, THEREFORE, BE IT
RESOLVED that the Governor and Cabinet of the
State of Florida do hereby recognize the
MY SAFE FLORIDA HOME
program in the State of Florida and
commend the program for their dedication and
perseverance on behalf of the citizens of Florida.
BE IT FURTHER RESOLVED
that the Governor and Cabinet of the State of Florida do hereby encourage
her citizens to be proactive in the protection of their homes, lives and
property during hurricane season.
IN
TESTIMONY WHEREOF the Governor and Cabinet of the
State of Florida have hereunto subscribed their names and have caused the
Official Seal of the State of Florida to be hereunto affixed in the City of
Tallahassee on this 12th day of August, 2008.
CFO SINK WELCOMES NEW DEPUTY CHIEF
FINANCIAL OFFICER BRIAN LONDON
Brian London has been appointed Deputy Chief Financial Officer for the
Florida Department of Financial Services. Brian's responsibilities will
include oversight of the Divisions of Insurance Fraud, State Fire Marshal,
and Workers' Compensation.
An experienced law enforcement professional, Brian most recently served as
the Executive Director and Chief Financial Officer of INTERPOL. With more
than twenty-five years in law enforcement and management roles, Brian has
also served with U.S. Customs Service (Homeland Security), the Financial
Crimes Enforcement Network, the U.S. Secret Service, and the Central
Intelligence Agency. He received a Master’s degree in National Security
Strategy from the National Defense University and a Master’s in Human
Resource Management from Pepperdine University. He also holds a Bachelor’s
degree in Political Science from Claremont McKenna College.
R. JAI HOWARD PROMOTED BY CFO SINK
R. Jai Howard has been promoted to serve as Director of
Appointments for the Office of Boards, Commissions and Residual Markets in
CFO Sink's office. In that role, R. Jai will work to coordinate
appointments to various Boards and Commissions under the CFO's purview and
represent the CFO at meetings. R. Jai holds a Master of Public Health degree
from Florida A & M University and also earned her B.S. in Biology from FAMU.
She previously has served as Special Assistant to the Chief of Staff and as
Staff Director to the Financial Literacy Council, a role in which she will
continue.
My
Family CFO
Are you the chief
financial officer of your family? Are you always
looking out for the best deals, wise investments and
smart moves for your family's financial security?
As your family's fiscal
watch dog, keep an eye on
this column for money-smart ideas from the Chief
Financial Officer of Florida,
Alex Sink.
IDEA:
STAY HEALTHY TO SAVE MONEY
A healthy lifestyle can reduce the likelihood of getting many common
illnesses, reducing the need for medical care. Eating right, staying
physically active, and not smoking are a few good examples.
A few more tips to help stay healthy:
-
Stay hydrated:
To function at its best, your body needs a regular supply of water.
-
Exercise:
Staying fit improves energy, immune function, sleep and concentration,
and contributes to weight loss.
-
Get enough rest:
Rest is equally as important as exercise for maintaining a healthy body
and mind.
-
Relax:
Over two-thirds of doctor's office visits are for stress-related
illness.
-
Challenge your mind:
Good concentration and focus enable you to react faster, make better
choices and feel better about yourself.
-
Eat fresh food:
Cut down boxed, bagged, or canned and go for fresh foods – especially
vegetables, fruits, and nuts. Locally grown can be beneficial, also.
SINK ORDERS EXTERNAL AUDIT OF ACCOUNTING & AUDITING
In a continuing effort to improve safeguards over public
funds, Florida Chief Financial Officer Alex Sink announced she has engaged
Deloitte & Touche LLP, to review procedures surrounding electronic payments
and transfers within the Division of Accounting and Auditing.
“Prudent financial management requires frequently updating processes to make
sure we have appropriate protections in place,” said CFO Sink, who oversees
the Department of Financial Services. “Just like Floridians have to be wary
of today’s more sophisticated criminals, state government needs to stay one
step ahead by tightening protocols to better safeguard public funds.”
NEW RECEIVERSHIP DATABASE PROVIDES TRANSPARENCY,
ACCOUNTABILITY
The National Association of Insurance Commissioners (NAIC) announced the
public release of its Global Receivership Information Database (GRID).
“Over the years, state insurance regulators have worked diligently to ensure
transparency and accountability with regard to receivership activity,” said
Iowa Insurance Commissioner Susan Voss, who chairs the NAIC Receivership and
Insolvency Task Force. “GRID provides a national clearinghouse for
receivership information, allowing us to better understand and disclose
information regarding this complex process.”
Information from more than 1,200 receiverships, provided by state insurance
departments in all 50 states and the District of Columbia, are housed within
GRID. This includes such information as receivership contact information,
relevant court orders and docket numbers, ongoing tasks, distribution of
assets, claims-liability details, business activity and deposits.
“State regulators must step in when insurers are unable to fulfill their
promises to policyholders. Our main priority is to provide the appropriate
oversight and controls necessary to ensure the fair and efficient
distribution of the insurer’s remaining assets,” said Florida Chief
Financial Officer Alex Sink, whose state was one of the first jurisdictions
to completely populate GRID with all of the historical data on their past
receiverships. “Future improvements to the database will be released in
spring 2009, providing annual balance sheet information of active
receiverships within GRID to offer even better transparency for consumers.”
GRID can be accessed via the NAIC’s Consumer Information Source (CIS) Web
site at www.naic.org/cis. The CIS
database provides several basic types of information on insurance companies,
including complaint statistics, licensing details and key financial data.
The NAIC Receivership and Insolvency Task Force is charged with overseeing
the maintenance and development of enhancements to GRID. For more
information, visit
www.naic.org/committees_e_receivership.htm.
Additional receivership data (and other state-specific insurance statistics)
can be found in the NAIC Insurance Department Resources Report. To order
online, visit the NAIC Store at
www.naic.org/store_home.htm.
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