California Insurance Commissioner Steve Poizner announced he has instituted a permanent 10 percent cut in the state's insurance department operating budget for a $13 million annual savings.
The action follows an 18-month efficiency evaluation by the insurance department. In a statement, Mr. Poizner said that rather than raise insurance fees, a review was conducted to make the department more efficient. The effort will be done without layoffs or salary reductions.
The cuts are being achieved through a reduction of overhead expenditures and vacant positions, it was explained.
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