News

“The Florida Phenom”
Stephen Moore, The Wall Street Journal
May 21, 2013
For Full Story Click HERE

Is Florida back from the brink? Not all the way, but the latest state employment numbers were plenty bullish. The unemployment rate in the Sunshine State fell to 7.2 percent, and another 17,000 jobs were added —which placed it third in job creation, trailing only first-place Texas and New York.

No state collapsed more during the real-estate bubble than Florida. Property values fell in some of the pricier markets—Naples, Fort Lauderdale, Marco Island—by 50 percent or more. Unemployment climbed above 11 percent.

Now the needles are all pointed in a northward direction, and the man in charge during the turnaround is Republican Gov. Rick Scott.

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The state has seen employment rise by just over 350,000 since 2010.

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Sure, there’s a national recovery, but the unemployment rate in Florida “has fallen almost twice as much as the national average,” the governor noted. Mr. Scott credits pro-growth policies. “We cut taxes 24 times,” he said, including business and property taxes by $200 per homeowner. The budget deficit has been tamed. The housing oversupply has been cut by one-third.

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“Florida’s Small Businesses: Rick Scott ‘Is Working’ for Us”

ERIC GIUNTA, Sunshine State News

May 2, 2013

For Full Story Click HERE

The Florida Chamber of Commerce and National Federation of Independent Business (NFIB) have not always seen eye-to-eye when it comes to public policy, but as the 2013 legislative session comes to a close they’re certainly agreed on one thing: Gov. Rick Scott “is working” for Florida.

“Frankly, it is working,” Brad Swanson, the Chamber’s vice president of corporate and strategic partnerships, tells Sunshine State News, echoing Scott’s signature campaign slogan. “If you look at what Governor Scott has done since he’s come into office, Florida’s unemployment continues to buck the national trend and outperform. New jobs are constantly being created. In general, job creators can see Florida really is a better place to do business.”

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“This governor has been more engaged in directly soliciting businesses to relocate to Florida than any governor I’ve worked with for at least the last 20 years,” Bill Herrle, NFIB’s Florida executive director, tells SSN. “[Scott's] told me personally: ‘I don’t care if it’s one job or a hundred jobs, if you know any business owner thinking of coming to Florida, tell me: I’ll call him personally.’

“We’ve done that, and he does that. It’s been a genuine demonstrable commitment of time he’s spent to recruit businesses to Florida, both domestic and international.”

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Herrle agrees, pointing to several measures taken by Scott in order to make the state more competitive and to attract business.

“He recognizes that the Caribbean is blossoming, it’s booming; South America is doing fantastic, the Panama Canal is expanding,” he says. “And Scott, smartly, got in there and pushed for us to upgrade our ports so we can be in a position to compete for that trade.”

Besides merely cheerleading for the state’s business community – “it’s not the sophisticated, high-powered hospital executives who he appeals to, it’s the kid starting the doughnut shop,” said Herrle – Swanson and Herrle both praised Scott’s advocacy for, and ratification of, legislation that reduces the tax and regulatory burden on businesses.

Both the House and the Senate approved Wednesday a sales tax exemption on manufacturing equipment. The tax break was one of Scott’s chief legislative priorities this session.

“We’ve got to have something to put on those ships coming into our ports,” Herrle said of the machinery falling under the exemption, just before the House delivered its vote Wednesday evening.

Gov. Rick Scott voiced his deep concern Monday about the sequestration cuts that are set to begin Friday, calling the stalemate on negotiations in Washington, D.C., an “elementary school game of ‘chicken.’”

“Sequestration means the Obama administration and Congress failed to do their job to manage the budget,” Scott said. “As thousands of Floridians lose their jobs, the Obama administration and Congress are getting paid for not doing theirs. That’s just wrong.”

Florida is one of the leading states for the defense industry in the nation, with three unified combatant commands, 20 major Air Force and Navy installations, and annually contributes more than $73.4 billion to the economy. The state also is home to more than 750,000 defense-industry jobs.

“The impacts on Florida’s military installations and defense industries will be severe under the meat hammer of sequestration,” Scott said. “Our immediate concerns include dramatic reductions to our National Guard, which threaten our ability to respond to wildfires this spring and hurricanes this summer. Now is the time for leadership. It is critical for all national leaders to find a way forward that will not have unwarranted, unnecessary impacts on both our economic and our national security.”

Meanwhile, as President Barack Obama is slated to visit a military community in Virginia Tuesday, House Republican leaders blasted the president for his campaign tactics and urged him to stay in D.C. to figure out how to avert the cuts.

Answering questions from the media Monday, House Speaker John Boehner and other top GOP members said it was time for Obama to “stop campaigning” and work with Congress to stop the $85 billion in cuts that will take effect March 1.

The impact of the cuts to Florida’s defense industry is estimated to include 40,000 to 80,000 in job losses and the reduction of nearly $1 billion in defense spending across Florida. The Florida National Guard also estimates an annual impact of $27.2 million and nearly 1,000 employees furloughed for 20 percent of the remaining year. That would equal more than $7 million in lost wages.

With the nation’s top state leaders visiting D.C. this week for the National Governors Association (NGA) winter meeting, the talk quickly turned to sequestration, as the states’ head officials fear ultimately being the ones left to clean up the mess.

“I think there’s a lack of leadership, period,” Republican Gov. Gary Herbert, of Utah, told Politico. “And there’s enough lack of leadership blame to go around. The president needs to step up with his proposals. [House] Speaker Boehner needs to come to the table with his proposals. And what’s happening with [Senate Majority Leader Harry] Reid? I mean, they haven’t done a budget there for four years.”

Meeting with the NGA at the White House Monday, Obama said it was time to do some governing.

Read the full article here.

Gov. Rick Scott, in releasing his largest fiscal plan in three years, a blueprint for legislators that offers pay raises to teachers, bonuses to state workers, and has received support from environmentalists, is being praised by fiscal watchdogs.

Tallahassee-based Florida TaxWatch — best known for annually highlighting “turkeys” in the state budget — commended Scott’s $74.2 billion proposal as striking “a sound balance between increased funding for critical services and still striving to make government leaner and more efficient.”

TaxWatch, noting that Scott’s proposal follows many of their proposals to reduce government costs, backed Scott and the Legislature for efforts the past few years to slash the state budget.

And now — with the state showing a slight surplus heading into the 2013 regular session — TaxWatch released a report Tuesday commending the plan for bolstering “transportation and economic development, along with the governor’s commitment to make economic development incentive spending more accountable and transparent.”

The reason for the support is that while Scott’s budget may increase funding by $4.2 billion, it comes without new taxes or fee increases and maintains the state’s reserves.

Don’t expect state legislators to be as welcoming.

By: JIM TURNER

Whether it is because of an improving economy, political concerns or a growing appreciation for his adopted state, Gov. Rick Scott now seems interested in dealing with the reality of Florida.

His proposed $74.2 billion budget would invest in many areas the state has neglected yet still would cut taxes and ensure Florida remains business friendly.

In the past the governor has slashed wildly, without regard for long-term consequences. This year, with his third budget proposal, he is discriminating.

His budget would increase spending by 6 percent, but that is justified given that the tough economy forced the state to make deep cuts over the past five years. The state this year finally has a revenue surplus.

The governor has hardly abandoned his pro-business, efficient government philosophy.

He would eliminate 3,600 state positions, a 3.1 percent reduction. This would drop the number of state jobs from 117,930 to 114,228.

The governor offers numerous cost-cutting measures and seeks to cut manufacturers’ taxes and raise the corporate tax exemption from $50,000 to $75,000.

He also now seems to recognize the need to invest in Florida’s future.

His priority is clearly education. He recommends increasing spending $1.25 billion, or 7.3 percent, for K-12 public schools.

Some lawmakers think his proposal to give teachers a $2,500 across-the-board raise undermines their push for merit raises.

But the governor has the stronger case. State teacher pay is 46th in the nation and $10,000 below the national average. That is no way to attract energetic young educators. Giving our vastly underpaid teachers a one-time boost does not undermine the merit pay system.

State universities, which were dealt a $300 million cut last year, would get an increase of $393 million under Scott’s budget, which also would hold the line on tuition.

It’s not clear how the University of South Florida will fare because a portion of the funds would be allocated on performance measures such as the percentage of graduates employed.

But it is about time the governor showed some appreciation for USF, a critical economic engine for our region. Scott and the Legislature treated USF shabbily last year while abruptly transforming the USF Polytechnic branch campus in Lakeland into an independent university, a staggering boondoggle without academic or financial justification. It was orchestrated by Polk County’s powerful JD Alexander, then a state senator.

It is encouraging the governor, who recklessly axed environmental programs his first year, seems to have awakened to the importance of protecting Florida’s waters and natural beauty.

His budget would provide $60 millions for Everglades restoration and $75 million for the Florida Forever land acquisition program, which has been virtually abandoned.

Scott would fund most of the new land purchases by selling surplus state lands that don’t have environmental value. That’s appropriate, though the process will need monitoring.

Some of Scott’s recommendations require scrutiny, particularly Medicaid cuts to hospitals. But the governor is correctly reluctant to commit to the Affordable Health Care Act’s Medicaid expansion until he knows more about what the ultimate costs to the state will be. Federal promises always deserve caution. A concern for lawmakers should be the impact if Washington does make major spending cuts.

No governor’s budget is flawless, and no governor’s budget gets through the Legislature intact. But Scott merits credit for providing lawmakers a solid framework for spending.

“Gov. Scott will seek $1.2 billion more for schools”
Steve Bousquet, Miami Herald
Jan. 30, 2013
For the Full Story Click HERE

Florida Gov. Rick Scott announced Wednesday he will ask the Legislature to increase funding for public schools by $1.2 billion next year.

Speaking to the annual AP news forum in Tallahassee, Scott presented a case that Florida’s economy has steadily improved under his direction and that now is the time to “strategically invest” in public education.

Scott will make his full budget recommendations to the Legislature at the state Capitol Thursday.

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ORLANDO – Today, joined by teachers at Ocoee Middle School in Orlando, Governor Rick Scott announced that he is proposing a $2,500 teacher pay raise, in addition to an increase in K-12 education funding, in his upcoming state budget proposal.

Governor Scott said, “Today, I am excited to announce that as we continue to move our state forward and create more jobs, we are doubling down on our investment in education. I can think of no better investment for our state than investing in those teachers who work on the frontline of Florida’s future every day by teaching our children. I am asking the legislature to join with me in supporting my 2013 budget request that will provide every Florida full-time public classroom teacher the ability to receive a $2,500 pay raise.

“My proposed budget will include $480 million in funding to support a $2,500 pay raise for full-time public classroom teachers in our state.  This funding will support districts’ ability to provide a $2,500 teacher pay raise, plus the cost of related benefits. This teacher pay raise is in addition to an overall increase in education funding that will be included in our full budget proposal.

“We are at an exciting place in the history of Florida education – in large part due to the hard work of our teachers. Our students and teachers were recently ranked 6^th for educational quality. On a recent international reading survey, our fourth-graders scored among the best in the world. And, the National Council on Teacher Quality ranked Florida teachers number one in the country in their 2012 survey.

“Our teachers are working hard to move toward a new set of Common Core State Standards that will help to prepare our students for college and careers.  A few months ago, I rolled out my College and Career FIRST plan, which included a number of our proposals to help teachers purchase supplies, instead of using their own money, and to help districts with innovative professional development to help teachers prepare for the new standards.

“Not only should we support our teachers during this transition, but we should also recognize them for the hard work they are putting into preparing our students for college and careers. By 2014, Florida teachers will be a part of our performance pay structure that will help attract and advance the most high-performing teachers in our education system. We believe in teacher accountability and we know our teachers do too. With the new performance system in place, now is the time to increase our investment in Florida’s teachers.”

Governor Scott added, “This $2,500 teacher pay raise will be in my recommended budget, but it still needs to pass the legislature before we can sign it into law. It will also need to be collectively bargained at the district level to be implemented. I look forward to working with educators and leaders at all levels of government and all across our state to make this commitment to Florida teachers a reality.”

Education Commissioner Tony Bennett said, “Student success is driven largely by our talented classroom teachers. To retain talent, we must compensate our educators appropriately. I commend Governor Scott for wanting to raise the salaries of our hard-working classroom teachers.”

State Board of Education Chairman Gary Chartrand said, “We know that quality teachers are the most important factor in student achievement.  Adequate compensation is critical to attracting and retaining quality teachers and the Governor’s action clearly illustrates how important teachers are to the success of all our students in Florida.”

Executive Director of the Florida School Boards Association Wayne Blanton said, “We are extremely pleased that the governor has recognized the hard work of teachers throughout Florida and we will work closely with the Governor’s office and the Legislature to ensure that all of our teachers and employees are recognized for their dedication and hard work.”

David Hart, Executive Vice President, Florida Chamber of Commerce said, “A talented workforce is Florida’s best economic development tool toward ensuring businesses can successfully compete in the global marketplace. The Florida Chamber has long-supported paying great teachers more, and applauds Gov. Scott for his initiative to reward Florida teachers.”

Dean Asher, 2013 President, Florida Realtors said, “As I travel the state, I hear far too many stories of teachers who can’t afford to live in the school districts they serve. Florida Realtors applaud the Governor for recognizing the value of those who make such a difference in our children’s lives. In addition to being the role model at school, we want them to also be able to afford to be a neighbor in the community.”

Governor Scott was joined for his announcement today by Orange County Superintendent Dr. Barbara Jenkins, Ocoee Middle School Principal Sharyn Gabriel, and other teachers and education leaders. Dr. Jenkins said, “Teachers in Orange County Public Schools are dedicated professionals who work hard every day to provide quality instruction to nearly 185,000 students. This significant gesture in the Governor’s budget acknowledges their work and the value of public education in the state of Florida.”

Governor Scott visited Ocoee Middle School in September 2012 as part of his Education Listening Tour, which kicked off his education agenda. The Governor previously announced his College and Career FIRST proposals to strengthen Florida’s education system, which included key reforms recommended to him by teachers and parents across the state during his education listening tour.

 

You can view the Governor’s remarks from today’s event, prepared for delivery,here.

Additional information on Governor Scott’s proposal is attached to this email, and available here.

Click here to learn more about Governor Scott’s College and Career FIRST proposals.

 

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From: TBO.com

Two years ago, facing a $3.6 billion shortfall, Florida lawmakers made the eminently sensible decision to require state employees to contribute 3 percent of their salaries to the state pension fund.

Unlike virtually every worker in the private sector, state workers did not have to contribute a dime to their retirement plan.

This is precisely the kind of financial largess that government needs to check, so it was gratifying to see the Florida Supreme Court on Thursday uphold the 3 percent requirement adopted by the Legislature and signed by Gov. Rick Scott.

The unions had claimed the change violated their contracts, and a lower court overturned the law, holding lawmakers did not have the authority to “create a new form of a pension plan.”

But the higher court, in a 4-3 vote, affirmed the law did not “bind future Legislatures from prospectively altering benefits for future service performed” by members of the Florida Retirement System.

And since the law did not affect any benefits earned before it took effect, the majority ruled its provisions were indeed prospective and entirely within the Legislature’s authority.

It is a thoughtful ruling, and one that brings some fiscal sanity to state government. Taxpayers should be relieved. Had the unions won, the state would have had to repay, with interest, state employees who had been contributing the 3 percent.

This highlights a larger issue: Government cannot continue to provide employee benefits not found in the business world.

Indeed, Florida House Speaker Will Weatherford correctly wants to phase out pensions and transition state workers to 401(k) retirement plans like most companies offer.

The Bureau of Labor Statistics reports in 2011 that only 10 percent of all private businesses offered pensions.

The Supreme Court’s finding should give Weatherford and lawmakers reason to keep working to bring pension costs under control.

Florida reestablished its top-10 ranking this year in a national education report that judges states by their education policies and performance.

The Sunshine State was ranked sixth in the annual “Quality Counts” report released today.

Florida had been in the top 10 since 2009 and rose as high as fifth place in 2011. But then it dropped to 11^th place last year because student progress stalled on the National Assessment of Educational Progress, national tests in math and reading.

Though there was no new test data included in this year’s report, Florida moved up five spots because of its improvements in “transitions and alignment,” or how the K-12 education system works with early-childhood programs, higher education and workforce needs.

“Today’s news that Florida has moved into the top 10 in the nation for overall quality of education reinforces that we’re taking the steps needed to ensure our students succeed,” said Gov. Rick Scott.

The “Quality Counts” report is done by the national education newspaper Education Week and ranks the 50 states and Washington, D.C. The annual review looks at six categories, including state policies related to school accountability, student success, teaching and finance.

Florida earned an overall grade of B-minus, while the national average was a C-plus. Maryland, with a B-plus, was the top rated state with Massachusetts just behind it. South Dakota was the worst performer, earning a D-minus.

This year, Florida earned A’s in the categories of “standards, assessments and accountability” and “transitions and alignment.” It also did well in the “teaching profession” category, getting a B.

But it got only a C-minus in student achievement and earned a D-plus in finance. Its education spending, as in years past, earned it an F.

Gov. Rick Scott wants the 2013 state Legislature to eliminate taxes on the purchase of equipment, saying it would grow manufacturing companies and create jobs.

Scott wants to eliminate the provision of businesses increasing their “productive output” by 5 percent to obtain the sales tax exemption.

“Florida’s current policy puts our state at a competitive disadvantage because most states do not force manufacturers to pay taxes on the purchase of equipment or require them to adhere to regulations for tax exemptions,” Scott said in a prepared statement.

Scott also wants the state Legislature to double the Quick Response Training funding to $12 million.