FEDC Inside Track For Legislative Affairs: Senator Ring Passes Economic Stimulus Bill

The Florida Senate issued the press release below today, April 17, 2008, regarding passage of SB 2310 relating to Economic Stimulus by Senators Jeremy Ring and Alex Diaz de la Portilla and the Senate Governmental Operations Committee.

In the House, the companion legislation, HB 1295, awaits action by the Economic Expansion and Infrastructure Council and is expected to be heard Friday, April 18th.

Should you have any questions or comments, please contact Frank or Tracy Mayernick at this office.

 

Senator Ring Passes Economic Stimulus Bill Promising High Tech Investments and High Paying Jobs in Florida

Yahoo! Pioneer Also Aims for Creating Innovative Space Prize Award

TALLAHASSEE- Florida’s sluggish economy moved a step closer to getting a much needed boost under legislation unanimously endorsed by the Florida Senate on Thursday.

Senate Bill 2310, sponsored by state Senator Jeremy Ring (D-Margate) would tap the country’s fourth largest pension fund to invest in private high-growth industries such as aerospace and aviation engineering, computer technology, renewable energy and medical and life sciences, to create rewarding jobs in Florida.

“I’m very pleased that the Florida Senate recognized today the importance of using one of The Sunshine State’s most powerful financial resources to stimulate in our state new investment opportunities, economic development and good paying jobs,” said Ring. “Our state’s economy will only get worse if we don’t look beyond our over-reliance on old industries such as tourism and agriculture. Prudently harnessing the power of the state pension fund holds the promise for our state to become a national leader in innovative, high-tech fields and innovative, high-paying jobs.”

SB 2310 is patterned after a similar California model in use for several years that taps that state’s California Public Employees’ Retirement System (CalPERS). The program in 2006 created 124,000 new jobs and added $15.1 billion in value to the California economy. Similar programs are now in use in ten other states.

Ring’s model would allow the State Board of Administrators to identify and invest funds from the Florida State Retirement System – already being invested outside the state – in “Technology and Growth Investments” here in Florida. These investments would be in industries with a potential for high growth and to create high-wage jobs. The program would limit these investments to 1.5% of the net asset value of the entire fund, approximately $2 billion presently.

“We wanted something already tested and proven to deliver high dollar returns for our state while safeguarding the interests of our pensioners, participants and beneficiaries,” said Ring. “This model already exists in 10 other states including New York, Massachusetts, Texas, Ohio, and of course California, with some astounding results and at no additional cost to our taxpayers.

“Rather than boost the economies of Dubai or Washington, it would jumpstart Florida’s.”

Ring’s legislation would also create a reusable space vehicle industry prize program. 

The Florida Prize for Space Exploration would award $40 million ($20 million in state funds and $20 in matching private sector sponsorships) to the private sector firm or individual that provides the most significant advancements within the reusable space vehicle industry.

The proposal mirrors the Orteig Prize that Charles Lindbergh won in 1927 when he became the first to fly from New York to Paris without stopping. Aviation incentive awards in the early 20th Century helped build the nation’s $300 billion commercial aviation industry.

In the House, the companion legislation HB 1295 awaits action by the Economic Expansion and Infrastructure Council and is expected to be heard Friday, April 18th.