House Wrapping up Budget Process

The Florida House Appropriations Committee approved a $69.2 billion budget on Thursday, February 2, that includes funding for economic development at a significantly lower level than the Governor’s recommendations, although it includes very few cuts from the previous year funding levels. Highlights include:

• Enterprise Florida operating budget maintained at $14 million
• A $19.1 million increase in funding for VISIT FLORIDA
• Space Florida budget maintained at $10 million
• $72.5 million for economic development programs including Quick Action Closing Fund, Innovation Incentive Fund and Qualified Targeted Industry program.
• $2 million appropriation for Economic Gardening (GrowFL) program

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Senate begins budget negotiations

Last week, the Florida Senate began its budget process: releasing budget allocations and allowing budget subcommittees to draft their proposals. The Senate Transportation and Economic Development appropriations committee, after three committee meetings, produced its recommendations. The overall funding levels are lower than the governor’s recommendations, and Enterprise Florida received cuts in its operating budget.

Highlights include:

• Enterprise Florida operating budget reduced to $13.6 million(no funding appropriated for the Sunshine State Games and Minority Business Development)
  
• A $5 million increase in funding for VISIT FLORIDA
• Space Florida budget maintained at $10 million
• $77 million for economic development programs including Quick Action Closing Fund, Innovation Incentive Fund, Qualified Targeted Industry and Brownfield tax refunds/credits, and defense programs. (Note: This appropriation was funded in the newly created SEED trust fund, which allows for flexibility in the use of funds; a priority of Enterprise Florida and Governor Scott. )
  
• $50 million in a newly created Economic Development Governor’s Reserve Fund (Governor Scott requested $100 million)
  
• $2 million appropriation for Economic Gardening program
• $30 million in the Economic Development Transportation Fund (Road Fund)

During the next two weeks the Senate budget will receive numerous revisions as it makes its way to the Senate floor for a vote. Once the full Senate has voted on the budget, the House and Senate can begin the process of budget conference during which members of each chamber work out their budget differences.

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Confidentiality Legislation Moves Forward

The Florida House’s Government Operations Subcommittee heard House Bill 7115, which relates to the reenactment of sunshine exemptions for economic development agencies on February 8. A priority for Enterprise Florida and Florida’s economic development community, the reenactment of this exemption is imperative for Florida to remain competitive in business retention and recruitment.

Florida has a long record of government in the sunshine with limited exemptions. Each exemption that is passed into law receives thorough review and legislative discussion before being implemented into law and comes under additional review every five years.

Currently, Florida’s economic developers use a very narrowly crafted sunshine exemption while working with economic development projects. The current exemption provides that:

*Information regarding a company’s plans, intentions and interests is confidential for 12 months from the date confidentiality was requested unless otherwise disclosed. (There’s an optional 12 month extension under certain conditions)

*Trade secrets, proprietary confidential business information, account and personnel identification numbers remain confidential beyond the initial 12 month period (until otherwise disclosed)

*Certain information remains confidential for the duration of an active incentive agreement (average wage, amount of taxes paid, and certain sales figures)

*The statute lists specific information that can be disclosed and allows for statistics to be published in aggregate.

Public disclosure while the deal is still active presents a major competitive disadvantage for Florida.

• Public disclosure before land and other transactions are complete could compromise the company’s position in those deals (e.g., purchase prices on land or buildings could be artificially inflated).
• Company’s stock value (or other valuation) may be impacted.
• Company employees may choose to leave based on premature news.
• The value of incentives offered by Florida will be publicly available – even to other states competing for the project – allowing the competitor state to one-up Florida’s proposed deal.

The legislation received unanimous support from the subcommittee and now awaits its next hearing.

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Formation of Florida’s Infrastructure Fund Moves Forward

Florida lawmakers continue to face budget shortfalls, solutions to adequately fund the state’s infrastructure needs are in short supply. An Enterprise Florida priority, Senate Bill 1472 and House Bill 1491 relating to the formation of Florida’s Infrastructure Fund (FIF), would allow infrastructure projects to be built with little to no cost to the state. Both pieces of legislation were heard in their respective first committees of reference this week and received favorable support.
The FIF would be a $700 million Florida-focused infrastructure investment program for the Florida Opportunity Fund (FOF.) The FOF would raise $700 million of investment capital from private capital sources to fund the program, to go along with $700 million in future contingent tax credits used only as a guarantee to the principal investment to program investors. Creation of the FIF could potentially result in over $6 billion in funding for infrastructure projects and over 60,000 new jobs.

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Legislation of Note

House Bill 1119 /Senate Bill 1150, relating to New Markets Development Program – This legislation raises the cap on the New Market Development Tax Credit program from $97.5 million to $195 million. The program allows community development entities to invest capital into qualified businesses in Florida’s low-income communities in exchange for a tax credit.

House Bill 7087, relating to economic development – A bill originating from the House Finance & Tax committee, this legislation contains numerous policy issues relating to tax exemptions. Of interest to Enterprise Florida stakeholders is the portion which contains an EFI legislative priority: reducing the 10% productivity increase requirement to receive exemptions on sales and use tax for manufacturers to 5%.

House Bill 5501 , relating to one-stop business registration portal- This legislation will reduce excessive burdens and regulation on businesses in Florida by directing the Department of Revenue to establish One-Stop Business Registration Portal. This portal will allow individuals & businesses to submit applications for various licenses, registrations, or permits, file various documents, or remit payment for various fees to state department or agency in one location and in one payment.

House Bill 507 /Senate Bill 684, relating to Manufacturing Incentives – This legislation designates an executive director of manufacturing for Florida, amends the capital investment tax credit and creates a manufacturing capital investment tax credit. Enterprise Florida is working closely with the House sponsor and the Manufacturing Association of Florida on this legislation.

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Secretary of Commerce Gray Swoope presented an overview of the 2011 Florida Incentives Report to the Senate Commerce & Tourism and Transportation & Economic Development Appropriations committees.

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House Update

The House Economic Affairs Committee met Jan. 19. Included on the agenda was House Bill (HB) 7027, sponsored by the House Business and Consumer Affairs Committee and Rep. Doug Holder (R-Sarasota). The bill, which proposes changes to Florida’s unemployment compensation program, was reported favorably and now moves to the House floor for final consideration. HB 7027 would:

- Require training for unemployment compensation beneficiaries who score below minimum proficiency on a skills test portion of the benefits application process;

- Extend the statute of limitations for the state to seek compensation and prosecute unemployment compensation fraud;

- Permit employers not to pay into the workers’ compensation system for layoffs related to man-made disasters such as oil spills and terrorist attacks;

- Rename the “Unemployment Compensation Law” the “Re-employment Assistance Program Law.”

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Workforce Florida Bill of Interest

Senate Bill (SB) 1314 by Senator Don Gaetz (R-Destin) will be heard in the Senate Committee on Education PreK-12 on Jan. 24. If passed, the bill will require each district school board, in collaboration with Regional Workforce Boards, economic development agencies and postsecondary institutions, to develop a three-year strategic plan addressing and meeting local and regional workforce demands.

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Florida Statute 288.075

SB 1206 and PCB GVOP-15 Relating to OGSR/Economic Development Agencies

The bill changes the current exemption for information related to the plans, intentions, or interests of a private company, person or individual considering locating, relocating, or expanding its business operations in Florida. The bill reduces the time that such information may be exempt from public records by repealing the optional 12 month extension of such exemption.

Under current law, information related to the plans, intentions, or interests is exempt for 12 months after the date an economic development agency receives a request for confidentiality or until the information is otherwise disclosed, whichever occurs first. The bill provides that the information may now become public record 90 days after the signing of an economic incentive agreement, 12 months after the request is received, or until the information is publicly disclosed, whichever occurs first.

The bill also makes changes to the exemption for information related to economic incentive programs. The bill provides that information related to certain wage, job, and tax information becomes public 90 days after an incentive agreement is signed. For example, the amount of tax refunds, tax credits, incentives paid to the business, and monies refunded back to the state become public record after the 90-day time period.

The bill also specifies that tax information that is still considered confidential and exempt may be reported in the aggregate in EFI’s annual incentive report.

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QTI Fix

During the 2011 Legislative Session, Representative Coley offered an amendment on HB 879 for economically disadvantaged counties in North Florida.  This amendment was intended to revise and reduce the local financial support requirements from 20% to 10% for a 3 year period for the QTI Program.  Because of the BP Oil spill, state worker layoffs and other financial factors, this amendment was well received and passed both Chambers, then signed into law by the Governor.  After speaking with EFI and DEO their staff, it became clear that staff had interpreted the law differently than the legislature’s intent.  Currently, there is an amendment that will soon be filed to one of the QTI bills to fix this glitch and interpretation.

Proposed Fix:  To be offered by Legislators from Big Bend/Northwest Florida

Amending Section 288.106(4)(f)

Effective July 1, 2011, notwithstanding paragraph (2)(j)(k), the department office may reduce the local financial support requirements of this section by one-half for a qualified target industry business located in Bay County, Escambia County, Franklin County, Gadsden County, Gulf County, Jackson County, Jefferson County, Leon County, Okaloosa County, Santa Rosa County, Wakulla County, or Walton County, if the department office determines that such reduction of the local financial support requirements is in the best interest of the state and facilitates economic development, growth, or new employment opportunities in such county.  The amount of reduction in local financial support shall be provided by the department using funds from the account. The total amount of department funds provided for the annual tax refund to a qualified business shall not exceed 90 percent.  This paragraph expires June 30, 2014.

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CS/HB 595 Revitalizing Municipalities

The Florida Legislature has created or authorized the creation of several programs and mechanisms to encourage businesses to operate in and provide jobs in distressed areas; and to assist local governments in financing infrastructure and capital projects that will result in revitalizing business and residential communities and creating jobs.

The bill creates the ―Municipal Revitalization Act,‖ (Act) in ch. 290, F.S., relating to urban redevelopment. The Act allows municipalities with a specified population that are located within an enterprise zone to designate a sales tax TIF (tax increment financing) area to support the development of a retail development project by resolution. It also allows the governing bodies of the enterprise zone where the sales tax TIF area is located to receive from the state a portion of an annual increase in sales tax collections. As of April 2011, three municipalities had a population over 300,000 and have designated one or more enterprise zones: Jacksonville, Tampa, and Miami.

The bill amends the provisions relating to the distribution formula under the Municipal Revenue Sharing Program, to require distributions to municipalities that have a sales tax increment redevelopment district prior to the final adjustment. The distributions must be made to the appropriate governing body for distribution.

The bill requires the Department of Revenue to determine monthly, the specific amount payable to each eligible designated redevelopment agency and the aggregate amount of sales tax revenue that is required for distribution, and transfer that amount from the General Revenue Fund to the Revenue Sharing Trust Fund for Municipalities.

The Revenue Estimating Conference has not determined the fiscal impact to the state or local government as a result of this bill.

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Quick Response Training (QRT) grants, administered by Workforce Florida, provide funding for customized training to new or expanding businesses. Through this customer-driven program, Florida is able to effectively retain and attract businesses creating new high-quality jobs. QRT is proposed at $6 million in both the House and the Senate.  However, the House and Senate propose different funding sources, so that difference will have to still be worked out.

The EDC’s first board meeting of 2012 was devoted to introducing the new theme, a revised and enhanced website, and how the public-private partnership will approach economic development in the area.

The effort combines the nurturing of startups and existing companies, as well as promoting the region to site selection professionals across the country. Moore noted that the EDC’s marketing theme in recent years was “Be a Part of Our Secret.”

“Well, I decided the secret’s out,” Moore said. “We know how great things are doing in our area, and it is time for a quantum leap.”

The initiative will promote resources available to EDC investors and stakeholders, as well as site consultants. The centerpiece is an updated website — taledc.com — that covers such basics as incentives and resources for businesses, statistics on the area, permitting requirements, and a “map room” showing all the various business parks and industrial sites in the area.

The EDC has compiled a database of more than 600 site selectors nationwide. They receive periodically an electronic newsletter on Big Bend business development activities. Moore said when the newsletter goes out, EDC executive director Beth Kirkland gets five to 10 phone calls the first week inquiring about the area.

“It is having a direct impact on bringing knowledge about our region to those site selector folks,” Moore said.

One of the EDC’s priorities is fostering entrepreneurism and aiding local businesses with resources and technical assistance. Keynote speaker Eunice Cofie, CEO of the startup cosmetics company Nuekie, talked about her experience as a participant in the EDC’s Entrepreneurial Excellence Program.

A Florida A&M University graduate, Cofie earned degrees in chemistry and molecular biology. Her company is developing a line of skin-care and cosmetic products especially for women of color.

The EEP classes gave her instruction on team building, marketing and finance.

“Words can’t even explain how much I enjoyed that program,” Cofie said. “I learned so much from the speakers.”

A class highlight was local business owners who came in to tell their own real-life stories, and a final event called “pitch night” where attendees took the podium to explain their business plan and convince the class of their venture’s feasibility.

“I received so much feedback that it helped me to take my company to the next level,” Cofie said.

Tal-Tech Alliance hosted a roundtable discussion today (Wednesday.)

They talked about research, investment, exploration and commerce for the aerospace industry.

Members say Wednesday’s groundbreaking of the space shuttle Atlantis exhibit at the Kennedy Space Center is just one example of how aerospace and aviation can have a positive impact on the state’s economy.

The chairman of the roundtable, Bob VanRiper, says, “People love aviation and aerospace; there’s a lot of interest in it. Not a lot of people involved in it, but, people really want to see it be successful and continue to be a leading industry for Florida and for the United States.”

The roundtable was in partnership with the Leon County Economic Development Council.

Blue Cross and Blue Shield of Florida created the first interactive environment to give customers face-to-face consultations on complex health insurance issues, receive free preventative health screenings and participate in wellness events.

Local leaders joined the company for the ribbon cutting Tuesday morning.

Beth Kirkland with the Tallahassee/Leon County Economic Development Council says, “This is exactly what we’re looking for in Tallahassee. We want jobs created in one of our six targeted sectors that’ll allow us for increase consumer spending and overall economic wealth.”

Kirkland says the center will provide 14 jobs and boost the economy by $1.4 million.

The center is located on Apalachee Parkway right in front of Target.

The community is invited to the official grand opening on Saturday from 10am to 5pm and Sunday from noon to 5pm.

The new center is Florida Blue’s eighth location in the state.

Moore, 54, of Tallahassee, is the founder and chief executive officer of Moore Consulting Group. In addition to serving as EDC Chair, she sits on the Florida Center for Universal Research to Eradicate Disease (FL CURED) Advisory Council and is a member of the Florida State Hispanic Chamber of Commerce Board of Governors. Previously, she was the director of marketing and public relations for the Florida State University Center for Professional Development and Public Service from 1986 to 1993. From 1983 to 1985, she was the regional director of public relations and strategic marketing for Embry-Riddle Aeronautical University in central Germany and the Netherlands. Moore received a bachelor’s degree from the University of Central Florida and a teaching certificate from New Mexico State University. She is reappointed for a term beginning
February 2, 2012, and ending May 31, 2014.

“We must ensure we are measuring the most important outcome as we work to improve Florida’s economy, and that is helping people get jobs,” said Governor Rick Scott, who has made job creation, retention and attraction a top priority of his administration. “The efforts of Florida’s re-employment system are essential to supporting a growing economy, lowering unemployment and securing Florida’s status as the top state for doing business — with a highly skilled and productive workforce and a leading business climate.”

The placements are reported in Governor Scott’s new Monthly Job Placement Report. The report was developed by the Florida Department of Economic Opportunity and Workforce Florida Inc. in response to the Governor’s call for enhanced measurement of performance outcomes in workforce development that bolster the state’s economic recovery and growth.

The goal of the report is to highlight and share job placement achievement so that regional workforce boards and other workforce system partners can identify and replicate best practices and strategies statewide that successfully help job seekers gain employment. The report data is another measurement demonstrating Florida’s economy is heading in the right direction, and reinforces the positive job growth shown in December’s unemployment rate of 9.9 percent.

“Governor Scott has made getting Floridians back to work the defining priority for his administration,” said Chris Hart IV, President/CEO of Workforce Florida Inc., the state’s chief workforce policy organization. “As the backbone of Florida’s nationally recognized workforce system, regional workforce boards and the one-stop career centers they direct are all laser-focused daily on connecting job seekers and employers. The boards are committed to our system’s mission to help Floridians enter, remain and advance in the workforce.”

The top 10 ranked regional workforce boards for reported job placements in December 2011 are:

1. Pasco Hernando Workforce Board (Board Chair Lex Smith and President Jerome Salatino)
2. South Florida Workforce (Board Chair Alvin West and Executive Director Rick Beasley)
3. Chipola Regional Workforce Board (Board Chair Darrin Wall and Executive Director Richard Williams)
4. Workforce Escarosa (Board Chair Jay Overman and Executive Director Susan Nelms)
5. Workforce One (Board Chair Gary Arenson and President Mason Jackson)
6. WORKFORCE plus (Board Chair Barb Edwards and CEO Kimberly Moore)
7. WorkNet Pinellas (Board Chair Dennis Meyers and President Ed Peachey)
8. Tampa Bay WorkForce Alliance (Board Chair Dr. Tony Leisner and President Ed Peachey)
9. Heartland Workforce (Board Chair David Royal and President Roger Hood)
10. Florida Crown Workforce Board (Board Chair Jennie Reed and Executive Director John Chastain)

View the monthly report and a list of Frequently Asked Questions. For more information on Workforce Florida or its state and local workforce partners, go to WorkforceFlorida.com. Please visit EmployFlorida.com to list a job opening or search for jobs and access a wide array of workforce resources.

ETAM is a grant project funded by the U.S. Department of Labor and includes a three-college consortium and local workforce agencies to build workforce development solutions that can be deployed in both the education and training environments.

“We are incredibly proud of these students, and are excited about the early success of the ETAM project,” said Bruce Baton, program manager of TCC’s Advanced Manufacturing Training Center. “Earning the MSSC credential lets employers know that these students are highly-skilled and well-qualified in the field of manufacturing.”

“As we observe the manufacturing sector strengthening, it is imperative that we stay on top of industry trends and develop a trained and talented workforce that will fill those future workforce needs,” said Kimberly A. Moore, CEO of WORKFORCE plus, who’s non-profit secures training for those looking to become reemployed. “WORKFORCE plus and TCC formed a team committed to workforce development in our area and we’re proud to celebrate these graduates as they bolster their reemployment journey.”

WORKFORCE plus provides comprehensive workforce and career services for the ETAM grant participants at Tallahassee Community College. This allows the grant to address reemployment from both sides: training, certification and vocational preparation on one hand and job hunt strategy on the other.

TCC is hosting an awards ceremony to celebrate the manufacturing students’ success on Tuesday, January 31, at 5 p.m. in the Advanced Manufacturing Training Center. The AMTC is located on the southwest corner of TCC’s main campus at the corner of West Pensacola Street and Century Park Drive.

For more information on the ETAM project, contact TCC’s AMTC at (850) 201-9720 or the WORKFORCE plus outreach specialist at (850) 201-9722.