Governor O’Malley Steals Reserves form IWIF


Dear Friends, (Facebook Note I received this evening)  When will OWE Malley be held accountable.   If there are Republicans in our Assembly voting for this, then they too will be held accountable come election time.

Tomorrow (Wednesday March 2, 2010) about ONE BILLION DOLLARS will be stolen from the citizens of Maryland. Senate Bill 141, one of Gov. O’Malley’s priority bills will have its hearing. The Governor is fund transferring from funds and reserves where he should not be touching. He is taking from citizens reserves that are in trust…he is stealing our trust.

Near and dear to my heart is the tapping of the reserves of the Injured Workers Insurance Fund (IWIF.) O’Malley is taking $20 million dollars from the insurance company’s reserves! Reserves are over payments of insurance premiums paid by insureds which are held legally as a reserve fund. Insurance companies dealing in Maryland are required to hold reserves as a method of consumer protection and for solvency reasons.

Then is it legal? A 1968 opinion of the Attorney General’s Office states that reserve funds of the State Accident Fund (IWIF’s predecessor) are not state funds accessible for general purposes. Established as a nonprofit insurance company, IWIF is a quasi-public agency and state use of insurance over payments as a fund swap would be unconstitutional.

Then Gov. O’Malley’s “guys” have submitted bills (SB 507 and HB 1008) that basically make this move legal for this one time shot. Unbelievable…manipulation of funds, breaking of consumer trust and creation of law to make sure you aren’t breaking the law! Crazy.

Other “thefts” of public trusts which will happen are: $126.9 million from the transportation Trust Fund, $131 million from Program Open Space, $51.7 from the University of Maryland system, $1.8 million from Vehicle Theft prevention Fund, $1.5 million from the Board of Physicians Fund and these are just the big ones.

He is raping every fund possible and can take these set aside funds to balance his budget. He is taking public trust to prop up his poor management of State Funds. If Maryland truly had a revenue problem these funds would have been dry. We have a spending problem – every one knows it and now he is stealing our savings.

The IWIF money is an insurance reserve. He is jeopardizing thousands of employers policies which cover many thousands of Maryland citizens who are currently working…and expect coverage if injured on the job.

Please e-mail or call these members of Budget and Taxation and tell them you do not want reserves stolen. Tell them if they help Gov. O’Malley steal our money they too have broken the public trust.

Thanks,
Chris Cavey

________________________________________
Ulysses Currie, Chair (410) 841-3127 (410) 841-3127 (301) 858-3127 (301) 858-3127
Edward J. Kasemeyer, Vice-Chair (410) 841-3653 (410) 841-3653 (301) 858-3653 (301) 858-3653
David R. Brinkley
James E. DeGrange, Sr.
George C. Edwards
Verna L. Jones
Nancy J. King
Rona E. Kramer
Richard S. Madaleno, Jr.
Nathaniel J. McFadden
Donald F. Munson
Douglas J. J. Peters
James N. Robey
J. Lowell Stoltzfus
Robert A. (Bobby) Zirkin

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