FEDC Inside Track For Legislative Affairs: Committee Week Report–February 2-6, 2009

FEDC President & CEO Presents to House Economic Development Policy Committee

Florida Economic Development Council President & CEO Amy Evancho made a presentation to the Florida House of Representatives’ Economic Development Policy Committee during its February 4 meeting to review various proposals on improving Florida’s economy.  To view Ms. Evancho’s presentation materials, click here (pages 26-46).

Ms. Evancho discussed a number of issues currently impacting Florida’s economic development community and offered solutions on how the Florida Legislature can effect corrective changes.   She also gave specific examples of where these particular problems had caused Florida to forego statewide economic development opportunities.

Well received by the Committee, Ms. Evancho’s presentation prompted a significant amount of questions from the Legislators regarding her recommendations.  Strong response and appreciation for the information provided was expressed.  It also was stated that a number of the statutory changes required to fulfill these recommendations appeared to be “no-brainers.” 

Committee Chairwoman Jennifer Carroll said that her Committee would be “looking with an open and constructive mind to create a vision utilizing the expertise of the economic developers within the state.”  She also admitted it “takes money to make money.”

Chairwoman Carroll thanked Ms. Evancho and stated that what she provided was exactly what the Committee had been looking for, and what it needed to move forward in crafting recommendations of its own.

To follow up on Ms. Evancho’s successful presentation, FEDC will be working to provide economic impact information on some of the recommendations as requested by the House Economic Development Policy Committee as it moves towards putting these recommendations into legislation. 

As Chairman of the Council that oversees the House Economic Development Policy Committee, State Representative Dave Murzin made the following remarks in his opening statements at the meeting:

“Our priority for the 2009 Session will be to balance the State’s budget and pass some measures that will put Florida on the path to economic recovery.  I think we all understand and agree that there is no silver bullet and government alone is not the answer.”

“I’m asking that each of the committees under the Economic Development and Community Affairs Policy Council to explore suggestions along with other ideas they may hear from their constituents.  I need your help in crafting an economic package that we will present to the Speaker and the full House that focuses on creating jobs, expanding our businesses, and reducing unnecessary and burdensome regulations.  Your priorities are:

• Incentives for job creation and retention–Given our budget and revenue situation, funding these programs at historical levels will be challenging. 
• This Committee should examine and prioritize these programs to ensure we are positioned not only for the short term, but for the long-term economic benefit of this state.
• Expedited permitting for projects that create jobs–we have a law on the books, but it is onerous and rarely used.
• The needs of rural communities cannot be overlooked–these communities need jobs.
• We’ve been hearing from rural communities that broadband access is critical to their ability to attract new business and jobs, and we need to look for solutions.
   

Senate Select Committee on Florida’s Economy

On February 5, 2009, the Senate Select Committee on Florida’s Economy met and received a presentation on tax research from Dr. Rick Harper of the Haas Center, who provided graphs comparing Florida’s ranking with that of the United States on a number of benchmarks, from monthly unemployment rates, education rankings and expenditures on per capita personal healthcare, to per capita justice and welfare spending. 

Dr. Harper explained that when Florida is compared to other states on its education per capita spending, it appears to rank low.  However, when per-pupil spending is used as a comparative tool, the State ranks much higher, due to its large population of seniors who do not require educational expenditures.

The following ideas were among various statements issued by business economists regarding Florida’s situation:

• It is important to note that Florida’s tax system is yielding better outcomes than in California and New York, even though the State has been hit hard by the real estate collapse.  Therefore, it is fair to say that Florida’s tax structure works reasonable well.
• The State’s property tax burden should be shifted away from the required local effort and onto sales tax.
• A cigarette tax would be “a plus”
• Streamlined Sales Tax Initiatives (SSTI) membership would be a “net plus”
• Florida’s tax base has been narrowed over time; the State needs a lower rate, coupled with a broader base.
• More power should be devolved to local governments in order to provide for local adjustments to meet local conditions.
• Performance-based incentive programs should be encouraged and targeted, narrower in scope
• Impact fees retard growth
• Perceived de facto moratorium on comprehensive plan amendments should be relaxed
• Shift development/taxation focus from volume to quality, thus implying more of an education, workforce development focus.

The Committee also discussed and took public testimony on a growth management bill that will be offered by Senator Mike Bennett.  The proposal promotes a streamlined comprehensive planning process through a three-pronged approach to renewing urban areas and streamlining the permitting process for developers:

• First, the legislation extends deadlines for fiscally-constrained counties to submit capital improvement amendments to the Florida Department of Community Affairs. 
• Second, it creates transportation concurrency exception areas that allow for increased development in designated urban service areas. 
• Finally, it removes the development of regional impact process from communities that already have a comprehensive plan in place.

No vote was taken on this proposal, but the Community Affairs Committee is scheduled to hear the bill (which is likely to be assigned as SB 360) for a vote during its next meeting.  SB 360 also is expected to be heard on the floor during the first week of the 2009 Regular Legislative Session.  To view the proposed legislation please click here to access the February 17 Committee packet.

 

Appropriation Committees

The House and Senate Transportation and Economic Development Appropriation Committees met to begin evaluating their budgets for the upcoming year.  Both committees are scheduled to hear presentations from various agencies during all-day meetings throughout the week of February 9-11.  A report will be provided on these meetings.

 

Senate Commerce Committee

The Senate Commerce Committee met on February 3 and discussed recommendations relating to an Interim Project Review of the Office of Tourism, Trade and Economic Development’s (“OTTED’s”) oversight of the innovation incentive grant program.

OTTED’s grant program was funded with $450 million during its first two years, but was given no State funding in 2008 to recruit or develop seven institutes that focus primarily on biomedical research.

Committee members stressed the need for more monitoring and oversight, because all seven organizations are on different reporting periods, making comparison difficult.   It was determined that OTTED needs to set each on the same reporting period and obtain one annual report or evaluation, preferably in a consistent reporting format, inasmuch as all seven currently appear different.

 

Florida House Speaker Pro Temp Cretul Names Representative Sansom as Policy Council Chair;  Announces Additional Committee Appointments

Florida House Speaker Pro Temp Larry Cretul named now-former House Speaker Ray Sansom as Chairman of the Policy Council on February 6, 2009.

Speaker Pro Temp Cretul also announced the creation of the House Select Policy Council on Strategic and Economic Planning, as well as the following Committee appointments:

• Chair, Select Policy Council on Strategic and Economic Planning–State Representative Dean Cannon
• Chair, Select Committee on Seminole Indian Compact Review–State Representative Bill Galvano
• Vice Chair, Select Committee on Seminole Indian Compact Review–State Representative Sandy Adams
• Chair, Finance and Tax Council–State Representative Ellyn Bogdanoff
• Chair, Policy Council–State Representative Ray Sansom

Speaker Pro Temp Cretul also indicated his support for the election of State Representative Ron Reagan as Speaker Pro-Tempore when the Florida Legislature convenes for its Regular Session in March, 2009.

 

 

Should you have any questions or comments, please contact Tracy Mayernick at Colodny Fass.