Nobody knows what the final monetary toll will be for the floods that have devastated the Midwest.
But one thing is for sure -- the disaster shoots a hole in the arguments from folks who say a national catastrophe fund would just be a big giveaway for disaster-prone coastal states, like Florida. ...
There is no positive to be gained from such disasters, but maybe it will be the impetus for lawmakers on Capitol Hill to more fully understand the need for a national catastrophe fund, which would serve as a backstop to the private insurance market.
... It deserves widespread support.
The fund would draw dollars from federal sources and state bonds. Most important, such a fund could limit the tab handed to the federal government after natural disasters, like Hurricane Katrina, and would delineate the amount of risk to be picked up by insurers, states and the federal government. The CAT fund would not only more evenly spread the risk, it would allow governments to properly prepare and better manage tax dollars.
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Any bill still faces problems this year. President Bush has already said he would veto it if it ever gets to his desk, and opponents are sure to use the argument that states like Florida which has already enacted laws that put residents on the hook for much disaster damage would be the main beneficiaries. ...
Those still unsure of the need in non-coastal areas should take another look at news footage from the Midwest.
-- The Post and Courier, Charleston, S.C.
