MYTH: Commissioner Poizner has not reduced spending at the California Department of Insurance (CDI).

FACT: Commissioner Poizner has cut the state operations budget at CDI – the budget that he has direct authority over – by nearly 15 percent.

• Commissioner Poizner Reduced CDI’s State Operations Budget By $19.3 Million, From $135.9 Million To $116.6 Million.
  In January 2009, CDI’s state operations budget was $135.9 million. Since then, Commissioner Poizner has reduced the state operations budget by nearly 15 percent, or $19.3 million, to $116.6 million. (California Department Of Insurance, “Department Of Insurance Blog” Blog, www.insurance.ca.gov, 11/16/09)

• NOTE: The Commissioner Only Has Direct Control Over CDI’s State Operations Budget.

• • The $19.3 Million In Cuts Were Made After A Thorough Top Down Review, The First Ever Completed By An Insurance Commissioner. The $19.3 million in cuts made by Commissioner Poizner were made after a thorough top down review of the department initiated by the Commissioner after taking office and completed late last year. This was the first top down review ever completed by an Insurance Commissioner. (California Department Of Insurance, “Department Of Insurance Blog” Blog, www.insurance.ca.gov, 11/16/09)

• NOTE: The Whitman Campaign Cited The Governor’s Proposed Budget For CDI In January 2009, And Failed To Account For Only That Portion Of CDI’s Budget Over Which The Commissioner Has Direct Authority.

• Commissioner Poizner Reduced CDI’s State Operations Budget, Which He Has Direct Authority Over, By Nearly 15 Percent.

• • Commissioner Poizner Has No Discretion Over Pass-Thru Funds, Which Go To Local Law Enforcement To Help Combat Insurance Fraud.

• • Commissioner Poizner Has No Discretion Over Mandated Spending At CDI For Purposes Such As Rent, The State Data Center, Information Technology Support, The Conservation And Liquidation Office, Etc.

BOTTOM LINE: Commissioner Poizner reduced the portion of CDI’s budget over which he has direct authority by nearly 15 percent.

MYTH: Commissioner Poizner has not reduced the number of employees at CDI.

FACT: Commissioner Poizner has reduced CDI’s size by nearly 200 employees.

• When Commissioner Poizner Took Office, CDI Had 1,338 Authorized Positions; CDI Currently Has 1,146 Employees.
  When Commissioner Poizner took office, CDI had 1,338 authorized positions – a number that had increased in the years before he took office. Today, CDI has 1,146 employees and Commissioner Poizner has instituted severe hiring restrictions on the Department. Over the next year, the number of employees at CDI is expected to continue to decline as employees retire or leave the department. (California Department Of Insurance, “Department Of Insurance Blog” Blog, www.insurance.ca.gov, 11/16/09)

• Commissioner Poizner Has Reduced 192 Positions From CDI.
  From CDI’s size upon Commissioner Poizner inauguration to today, he has eliminated 192 positions at CDI. (California Department Of Insurance, “Department Of Insurance Blog” Blog, www.insurance.ca.gov, 11/16/09)

MYTH: Consumers have not saved on their insurance rates under Commissioner Poizner’s tenure.

FACT: During Commissioner Poizner’s tenure, consumers have saved almost $2 billion in lower insurance rates.

• Consumers Have Saved Almost $2 Billion In Their Auto And Homeowners Insurance Rates.
  Auto insurance rates have fallen by $1.15 billion and homeowners insurance rates have decreased by $661 million. The remainder of the $1.98 billion overall reduction are in other types of insurance. (California Department Of Insurance, “Department Of Insurance Blog” Blog, www.insurance.ca.gov, 11/16/09)

• Upon Taking Office, Commissioner Poizner Had To Update And Fix Previous Auto Insurance Regulations Left By His Predecessor.
  When Commissioner Poizner took office, the previous Insurance Commissioner left him with auto insurance rate regulations that needed substantial revision to be workable and effective. Commissioner Poizner revised and overhauled these regulations to ensure they would work before they were formally promulgated. (California Department Of Insurance, “Department Of Insurance Blog” Blog, www.insurance.ca.gov, 11/16/09)