FEDC Inside Track for Legislative Affairs: Week of Feb. 18-22

FEDC Legislative Report
Week of Feb. 18 – 22
2008 Interim Committees

The Florida Legislature met during February 18-22 for the final week of Interim Committee meetings. The next time Legislators arrive in Tallahassee, it will be to begin the 2008 Regular Legislative Session on March 4th. The Session ends on May 2, 2008.

In their final week, the various budget committees were forced to make difficult decisions while determining a fourth quarter budget reduction package amounting to over $500 million in cuts.

Committees heard presentations and continued moving filed bills through their first committees of reference.

State revenue estimators continue to paint a bleak picture for the upcoming Fiscal Year 2008-’09 budget. Early estimates of decreased revenues range from $3 to $4 billion.

An overview of the Committee week in Tallahassee is provided below:

 

Committee Presentations

House Economic Expansion & Infrastructure Council

The Council met to hear various agency and department recommendations for fourth quarter budget reductions. The Council is planning to examine similar reductions for the next budget cycle and has released a budget reflecting minimal cuts to the Office of Tourism, Trade, and Economic Development (“OTTED”). This budget included approximately $10,000 in salary reductions, but no cuts to any funding for projects and incentives. However, we have been warned that there could be cuts to this area during the next budget cycle, with revenue estimates continuing to get worse.

To view the Committee packet for this meeting, click here.

 

House Economic Development Committee

The House Economic Development Committee, chaired by Representative Dorothy Hukill, met to discuss potential regulatory changes that could be put forth within an economic stimulus package. Presenters were asked to give examples of proposed legislative changes that might alleviate burdensome, duplicative regulations and permitting issues.

With such limited funds available, the Committee realizes it will be difficult to attach money to its package, but feels strongly about the need to focus efforts on economic development within Florida.

A presentation was given on a study to evaluate the State’s economic development programs. Discussion revolved around Florida’s economic development needs, the significance of those needs within the State, the incentives most often used, whether the programs are meeting the needs of rural counties and what other states are doing in this area. To view a copy of this presentation please click here.

Enterprise Florida, Inc. (“EFI”) gave a presentation to the Committee on Florida’s challenges and EFI’s strategies, including what were termed “blackboard ideas.” The Committee liked the blackboard ideas and felt it could advance those ideas because they would not require funding. Representative Will Weatherford asked EFI if it supported Senator Jeremy Ring’ s filed bill, SB 346. EFI indicated that it is currently working with Senator Ring, but that it did not have a position at that point in time.

The other two presentations were given by:

• Steve Chwilio, CEO of Nexis “Economic Gardening – Growing for the Future Stages of Development” (included templates from other states that could work for Florida)
• Gary Clark, Opportunities of Florida “Development of rural areas of Florida” (regarding permitting processes)

The Committee indicated it will continue to look at these policy suggestions to include in its recommendations for an economic stimulus package.

 

Senate Transportation and Economic Development (“TED”) Appropriations Committee

The Senate TED Committee met to review its proposed budget reductions for the fourth quarter of Fiscal Year 2008-’09. This Committee’s budget did not contain any cuts to EFI within the OTTED budget.

The TED Committee also only put forth cuts towards salaries. Originally slated to meet three times during the week, the Committee was able to conclude its work before the last scheduled meeting.

To view the Committee packet for this meeting, click here.

 

Budget Outlook

• 2007-2008

Proposed budgets for each chamber have been released and will be voted out of the committee level during the first week of the Legislative Session. The goal is to hear the budget on the floor and pass it out no later than the second week of Session.

• 2008-2009

It has been made clear that funding will be difficult to obtain for new projects during the upcoming year. There is an expectation that many of the reductions being proposed will carry over. Both chambers are looking at vacant positions within government as a potential avenue for these reductions. Indications are that the results of the revenue estimating conferences (that generally occur during late March/early April) will be consulted before drafting the Fiscal Year 2008-’09 budgets. As previously stated, early estimates indicate a shortfall of $3 to $4 billion.

 

Speaker Rubio Announces 2008 Legislative Priorities

Florida House Speaker Marco Rubio on February 26, 2008, sent House members a summary of 2008 legislative priorities. These priorities focus on limiting government spending and regulations, property insurance, health insurance, and economic prosperity—including education. To read Speaker Rubio’s complete legislative outline, and additional commentary from House Democratic Leader Dan Gelber, click here.

 

News from the Governor’s Office

The Florida Energy Office announced the winners of the Renewable Energy Grant Tuesday, February 26, 2008. There was $12.5 million awarded to the winning applicants.

For the second year, the Florida Legislature has funded the Renewable Energy Grant and had increased the funding by $2.5 million during the 2007-2008 budget. A segment of the grant application asked how each project would stimulate economic development within the State of Florida. To view a list of the grant recipients please click here.

 

Governor Crist Joins Nation’s Governors To Make Investment In Aging Infrastructure A Federal Priority

Governor Charlie Crist on February 25, 2008 joined the “Building America’s Future” coalition, which seeks renewed federal investment in the nation’s aging infrastructure. “Building America’s Future” was launched last month in Los Angeles by California Governor Arnold Schwarzenegger, Pennsylvania Governor Edward Rendell and New York City Mayor Michael Bloomberg. To read more on this story, click here.

 

Governor Crist Creates Task Force To Prevent Home Foreclosure

Governor Charlie Crist on February 20, 2008 created the Florida Home Ownership Promotes the Economy (HOPE) Task Force by Executive Order 08-27 to develop an action plan to address Florida’s escalating foreclosure rate. The Florida HOPE Task Force will bring together experts in the mortgage and banking industries, as well as consumer advocates and policy experts, to review Florida’s foreclosure rate and its impact on Florida’s economy. To read more on this story, click here.

 

Should you have any questions or comments, please contact:

Frank Mayernick at (850) 251-8898
Tracy Mayernick at (850) 445-3000
at Colodny Fass