WASHINGTON – U.S. Congresswoman Candice Miller (MI-10) today commended Michigan State Representative Anthony Forlini (R-Harrison Township) and Michigan State Senator Mike Green (R-Mayville) on their resolutions to petition the U.S. Congress to make significant reforms to the National Flood Insurance Program (NFIP). State Rep. Forlini’s resolution (House Resolution No. 62) was adopted by the full state house yesterday, and State Sen. Green’s resolution (Senate Resolution No.63) was introduced in the state senate yesterday and is awaiting consideration. Earlier this month, Miller testified before the Michigan House Committee on Insurance on the NFIP and how it affects Michigan residents who live within a floodplain.

“We cannot allow this failing program to continue on the same path year after year, and I commend State Representative Forlini and State Senator Green on their efforts to protect Michigan residents,” said Miller. “Too many residents in Michigan are serving as an ATM machine for other parts of the nation who face an extremely higher risk of flooding. The federal government is a bad insurance company, and we should be focused on allowing states to form regional insurance compacts to spread their risk, as well as working to further open the market for private insurance options – all without the federal government running the program.”

In the U.S. House of Representatives, Miller introduced legislation (H.R.435) to eliminate the NFIP, which currently has a deficit of over $19 billion and puts all taxpayers at great risk for even more debt in the future. Miller’s bill seeks to dismantle the NFIP by December 31, 2013, allowing states enough time to form regional insurance compacts to spread risk, and continues to allow the Federal Emergency Management Agency to assist their efforts by producing high quality flood maps, as well as assist states and the private sector to insure against flood loss.

Started in 1968, the NFIP has been consistently in debt, currently topping at $19 billion, and Congress has had to continually raise its purchasing debt limit. In addition, one out of every four property owners in the program receives subsidized rates and others in less flood prone areas are forced to pay significantly higher rates than they should based upon risk.

Note: From January through November 2010, Michigan residents paid over $20 million into the NFIP. Compare that to the $45 million total Michigan residents have received back from the NFIP since 1978. In less than one year, Michigan residents paid back almost half of the entire sum they have received from the past 33 years. (Source: Congressional Research Service) To see more information regarding a state-by-state comparison: http://www.fema.gov/business/nfip/statistics/pcstat.shtm

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