Flood program reform 'not the final step'

Ganett Louisiana6:32 p.m. CDT April 16, 2014

Recent reform of the federal flood insurance program was essential, but more changes are needed, U.S. Senate candidate Bill Cassidy said Wednesday in Alexandria.

Cassidy, the Republican congressman from Louisiana's 6th District, is challenging longtime Democratic Sen. Mary Landrieu in the fall election. He visited the corporate office of Martin Companies in Alexandria on Wednesday.

The Homeowner Flood Insurance Affordability Act was "a great first step, but not the final step," he said.

Cassidy and Rep. Michael Grimm, R-NY, crafted the amended House version of the bill that became law in March.

The legislation was a reaction to the Biggert-Waters Act of 2012, which was passed as a way to bring stability to the National Flood Insurance Program but surprised even many of its backers with the way it caused insurance premiums to skyrocket.

The Homeowner Flood Insurance Affordability Act repealed some of the more onerous provisions of Biggert-Waters by reinstating grandfathering, capping premium increases at a lower rate and eliminating the trigger that raised premiums immediately to actuarial levels when a property was sold.

Surcharges of $25 on primary residences and $250 on businesses and secondary residences are expected to pay for the changes in Biggert-Waters, but NFIP is still more than $20 billion in debt.

To reduce that debt, Cassidy suggests streamlining the program so less money is spent on expenses related to overhead, leaving savings that can be used to return to financial solvency. He also suggests getting the private sector involved in flood insurance, which he believes will foster competition and lower premiums.

"We have to make this program more effective, more accountable and more efficient," he said.

Asked about other issues on the federal level that will affect Louisiana, Cassidy drew a line between himself and Landrieu by sharply criticizing the policies of President Barack Obama.

He called the Affordable Care Act "one of the most anti-growth pieces of legislation to come out of Washington in some time." By encouraging businesses to cut their employees' hours and keep expansion to a limit, he said, the law hurts the people it's supposed to help.

He also criticized Obama for discouraging oil and gas production.

"This is why I'm running for Senate — this president's agenda," Cassidy said. "I disagree with that agenda."