CDI Cutting Operating Budget by 10%

California Insurance Commissioner Steve Poizner announced that he will permanently reduce the size of the Department of Insurance's discretionary budget by 10 percent.

Poizner achieved the savings in three steps. First, CDI created a strategic plan to clearly define its priorities. This is the first time such a plan was done. Next, the Department performed a top-down review to better align CDI's resources with its priorities and to identify opportunities to streamline operations and increase efficiencies. Finally, the Department conducted a business process survey that discerned further efficiencies.

When these efforts were completed, the Commissioner concluded that reductions in overhead expenditures and vacant positions could be made to permanently reduce CDI's operating budget by 10 percent. Given this, the Commissioner directed the Executive Staff to implement this reduction.

The 10 percent budget reduction will amount to approximately $13 million annual permanent savings through operational efficiencies. The reduction will not impact funding for statutorily mandated or critical program costs including grants distributed by the Department to local law enforcement governments to fight insurance fraud.