FEDC Inside Track For Legislative Affairs: Special Session 2009 Update
Jan 13, 2009
Legislature Reaches Special Session Budget Accord; Final Vote on January 14
After working throughout the previous week in Appropriation Committees and over the weekend in Conference Committees, the Florida Legislature ended a joint budget conference early Sunday, January 11, 2008, after each Chamber agreed to reductions in the State’s budget totaling more than $2.7 billion for Fiscal Year 2008-2009.
The resultant budget was printed and laid on each Legislator’s desk for the 72-hour waiting period as provided by Florida’s Constitution. The two Chambers will reconvene on Wednesday, January 14 to vote on the budget. If passed, it then will proceed to Governor Charlie Crist for his signature.
The Special Session, which began on Monday, January 5, was called to address revenue shortfalls in Florida’s budget.
The following funds were utilized by the Legislature in creating the reduction package:
- $400 Million from the Budget Stabilization Fund
- $700 Million from the Lawton Chiles Endowment Fund
- $190 Million from the Housing Trust Fund
- $300 Million from various other Trust Funds
- Four to six percent cut from each state agency/department
To view copy of the final budget conference report (SB 2A), click here.
The Regular Legislative Session begins on Tuesday, March 3, 2009, during which it is expected that another four to five billion dollars in budget reductions will be made.
Governor’s Economic Stimulus Plan Would Target Florida’s Small Businesses
Above: FEDC’s lobbyist Tracy Mayernick (second from left, black jacket) and FEDC leadership–Amy Evancho, FEDC President and Ray Gilley, FEDC Chair, (bottom right)–met with Governor Charlie Crist, Lieutenant Governor Jeff Kottkamp and Florida Office of Tourism, Trade and Economic Development Director Dale Brill on the Governor’s plan to stimulate Florida’s economic development through a small business stimulus packageet with Governor Charlie Crist, Lieutenant Governor Jeff Kottkamp and Florida Office of Tourism, Trade and Economic Development Director Dale Brill on the Governor’s plan to stimulate Florida’s economic development through a small business stimulus package.
Florida Governor Charlie Crist, Lieutenant Governor Jeff Kottkamp and Florida Office of Tourism, Trade and Economic Development (“OTTED”) Director Dr. Dale Brill met with members of FEDC in the Governor’s mansion on Tuesday, January 6, 2009 to discuss an economic stimulus proposal designed to target Florida-based small businesses through a loan program. After revealing the plan, the Governor and his team requested FEDC feedback and assistance in helping to identify qualified small businesses inform them about the program and assist in the application process to help ensure the program’s success.
Dr. Brill had made presentations in various House and Senate Committees throughout the week to introduce the proposal. After amendments were offered from both Chambers and a consensus was reached, a Wednesday January 14 vote is now expected on SB 38-A.
SB 38-A would create the Economic Gardening Business Loan Pilot Program within the OTTED and provide for the disbursement of certain funds from Florida’s Economic Development Trust Fund. The bill would also create the Economic Gardening Technical Assistance Pilot Program within the OTTED and requires the OTTED to contract for administration of the pilot program.
The plan’s first component is the Economic Gardening Business Loan Pilot Program, which will provide $8.5 million in low-interest, short-term loans to eligible businesses (up to $250,00 per business) for working-capital expenses, employee training, and new employee salaries.
The second component is the Economic Gardening Technical Assistance Pilot Program, in which $1.5 million will fund a third-party contractor with expertise in business outreach and development to work with eligible businesses in assisting them with infrastructure, networking and mentoring needs.
Eligibility requirements are identical for both pilot programs. The businesses must be Florida-based, for-profit companies that employ between 10 and 50 persons, generate between $1 million and $25 million in annual revenues, have experienced steady growth in gross revenues and employment during three of the last five years, and be eligible for the Qualified Targeted Industry tax refund program. For a detailed legislative analysis of the program, please click here.
BUDGET REDUCTIONS
Office of Tourism Trade and Economic Development
The total reduction to the 2008-2009 Economic Development Programs and Projects budget was $23,042,049. Below is a list of some of the reductions comprised within this budget:
- Enterprise Florida: ($476,170)
- Quick Action Closing Fund: ($11,781,543)
- Film & Entertainment: ($200,071)
- Space Florida: ($160,057)
- Military Base Protection: ($40,014)
There were no reductions in Transportation Road Fund.
WORKFORCE UPDATE
Included in the budget reduction legislation, Senate Bill 2-A represents a $1.5 million cut to Florida’s Banner Centers.
With the understanding that Workforce Florida’s Board would set aside yet-to-be-awarded federal funding for new and existing Banner Centers, the cut was sanctioned in budget conferencing this weekend. As a result of this planning, Workforce Florida, which recently received an Excellence Award from the International Economic Development Council, should not have current Banner Centers impacted by this state funding reduction.
Created by Workforce Florida in collaboration with education, business and economic development partners, Employ Florida Banner Centers serve as a statewide, go-to resource for cutting-edge training for entry-level and experienced workers who need to upgrade their skills in high-value sectors. Each is led by a Florida community college or university and relies on input from targeted industries to shape training.
On January 12, Governor Crist met with the directors of Florida’s 24 Regional Workforce Boards to discuss strategies for addressing Floridians’ employment needs.
“Support for Florida’s workforce system is a vital part of my administration’s commitment to strengthening the job market here in Florida,” said Governor Crist. “Now more than ever, we want to make sure that Floridians and employers have the tools and resources they need to not just weather the current challenges, but to expand and move forward. We must remain innovative in supporting our businesses and generating new jobs.”
The regional directors outlined for the Governor some of the services offered by their respective One-Stop Career Centers. The directors were Bruce Ferguson, who serves the Jacksonville area and is president of the Florida Workforce Development Association; Kim Moore, who serves the Tallahassee region; Rick Beasley, serving the Miami region; and Roger Hood, serving the Sebring region.
Senate Select Committee on Florida’s Economy to hold Public Workshops in Jacksonville, Palm Beach and Miami
In addition to its next scheduled meeting on January 13, 2009, the Senate Select Committee on Florida’s Economy will hold a series of public workshops over the next three weeks in Jacksonville, Palm Beach, and Miami. The workshops are part of the Committee’s initiative to invite Floridians to offer their suggestions for improving the State’s economy.
The Committee is charged by Senate President Jeff Atwater (R-North Palm Beach) to “create incentives and eliminate impediments to economic recovery and growth and ensure that government functions more simply, more transparently, less expensively and more effectively” and authorized to develop legislation or constitutional amendments.
Senate President Atwater also has asked the Committee to develop recommendations for the use of any federal stimulus money coming to Florida.
JACKSONVILLE – Assuming the Special Session is concluded, the first workshop will be held Friday, January 16, from 5:00 p.m. to 8:00 p.m. at Florida Community College’s Advanced Technology Center in Jacksonville.
The focus of the Jacksonville event will be on state and local government action items that are recommended to promote economic recovery.
“We are looking for very specific, practical actions the State can take to either remove obstacles to business activity or change the incentives and strategies the state uses to help Florida businesses grow,” according to Senator Don Gaetz (R-Niceville), Chairman of the Committee.
PALM BEACH – The Committee will meet on January 21 at the Children’s Services Center at 2300 High Ridge Road, Boynton Beach from 5:00 p.m. to 8:00 p.m. The Palm Beach meeting will include testimony from venture capital firms and business leaders on how to attract out-of-state businesses to Florida and promote in-state business expansion.
“There are no quick fixes or easy solutions,” said Committee Vice Chairman Jeremy Ring (D-Margate). “For the future, though, the opportunity is transforming. The right decisions now can provide a foundation for both recovery of Florida’s existing industries and creation of an innovation economy in which entrepreneurship can thrive.”
MIAMI – The Committee will meet on the Miami River at Merrill-Stevens Shipyard, 881 NW 13th Avenue in Miami on January 22. A workshop from 9:00 am to noon will emphasize opportunities for economic development of waterfronts and expansion of shipyards and ports. Other public testimony also will be taken.
In addition to Senators Gaetz and Ring, the bi-partisan Committee includes former Senate Presidents Jim King (R-Jacksonville) and Ken Pruitt (R-Port St. Lucie), as well as Senators J.D. Alexander (R-Lake Wales), Mike Haridopolos (R-Melbourne), Mike Bennett (R-Bradenton), Garrett Richter (R-Naples), Eleanor Sobel (D-Hallandale Beach), Tony Hill (D-Jacksonville) and Dan Gelber (D-Miami).
Additional workshops will be held in other locations in the State, according to Chairman Gaetz.
All meetings and workshops of the select committee are open to the public. To follow the work of the committee go to www.flsenate.gov or to provide direct comments, suggestions and guidance to committee members email floridaseconomy@flsenate.gov.
For more information about committee workshops or the work of the panel, contact the Senate Select Committee on Florida’s Economy at (850) 487-5494.
Should you have any questions or comments, please do not hesitate to contact Tracy Mayernick at Colodny Fass.