With less than a month to go for the Florida Legislature Regular Session, several major issues remain unresolved.
No issue is more entertaining — on a purely political basis — than the debate among Republicans on the viability of Enterprise Florida.
That’s the public-private partnership between Florida’s business and government leaders where recent records show has spent a lot more public than private money. And that’s a major reason Enterprise Florida has spent an entire year in the crosshairs of House Speaker Richard Corcoran, whose intense campaign has resulted in the Florida House voting to defund the organization.
But that’s not the case in the Senate.
The upper chamber’s current budget funds the organization to the tune of $85 million, with Gov. Rick Scott taking weekly road trips up and down the state for the past few months calling out House Republicans who voted against the measure. Much of the road trips include cheerleading sessions with both political and business elite in those communities.
J.P. DuBuque, the president of the Greater St. Petersburg Economic Development Corporation, admits that economic growth in the state won’t die out if Enterprise Florida isn’t retained. But he also believes taking away the business community’s biggest (and best) marketing arm and “unilaterally disarming” regarding tax incentives will negatively impact growth trajectory and the success overall of Florida communities.
“We’re competing against other locations. They may have deals where they might be considering locations in Cleveland or Dallas or Nashville or Atlanta. All of those states have lucrative incentive programs, and if we do not have something of our own to help close the deal, the total cost element which every business is going to look at, that pendulum moves away from Florida, and we don’t get the jobs,” he says.
In a conference call with FloridaPolitics.com Friday, DuBuque joined Bram Hechtkopf, CEO of St. Petersburg-based Kobie Marketing, a firm working with some of the biggest companies in the United States to build brand loyalty.
Working through the State’s Qualified Target Industry (QTI) program last year, Kobie qualified for 255 new hires, with an average salary of $80,000.
Under the QTI program, administered through the Department of Economic Opportunity and Enterprise Florida, companies can receive a $3,000 tax refund per new job created — if the salary is more than 115 percent of the county’s average annual wage.
After the House Rules and Policy Committee had passed a bill last month to kill Enterprise Florida, the libertarian-based Americans for Prosperity-Florida celebrated.
“Florida is the best state to raise a family and start a business, because of our outstanding recourses and infrastructure, not because of taxpayer handouts,” AFP-Florida representatives said in a statement. “The time to end these unfair handouts is now.”
AFP-Florida has been the most vocal group to call out all forms of what they dub “corporate welfare.” In so, they found an ideological partner in Corcoran, who at one point wanted the same fate for Visit Florida, the state’s tourist development arm.
Corcoran has since backed off that stance while continuing to push for a severe reduction in its budget.
DuBuque, as head of the EDC, bristles at the suggestion that EF simply gives out tax incentives willy-nilly.
“The incentives don’t make the deal,” he maintains. “The decision to consider a location for growth or relocation is driven first in most cases by availability and cost of labor, then you have real estate considerations, you have quality-of-life considerations, so you have all of these considerations that your business are going to take.”
Hechtkopf emphasizes that Enterprise Florida has been a good corporate partner, helping attract and maintain talent in the Tampa Bay area. Although he was unable to confirm the nature of how the tax incentive program would work for Kobie Marketing, an official working with the firm later contacted FloridaPolitics to say that Kobie “has the potential of $1.7 million dollars in tax refunds from calendar years 2017 through 2023 as long as the 255 net-new employee are retained through the year 2023.”