Insurance Company Settlement Money to Bolster Louisiana’s Budget

Louisiana has received $95 million in legal settlements with insurance companies, ending questions about whether the money would roll in for this year’s budget or leave lawmakers scrambling to fill a shortfall.

Commissioner of Administration Kristy Nichols announced the settlement agreement on April 4.

A month earlier, lawmakers had worried the dollars wouldn’t arrive before the fiscal year ends June 30 – with $56 million of it allocated for spending in the budget. Gov. Bobby Jindal’s administration assured lawmakers the money was expected this year.

The $56 million will be spent in this year’s budget as planned.

Nichols says in a statement she’ll ask lawmakers to put the remaining $39 million into the state’s “rainy day” fund.

The settlements involve payments for state property losses from hurricane damage several years ago.