Jim Rosica
Gov. Rick Scott on Thursday called on lawmakers to overhaul the state’s business incentive programs, saying businesses and jobs won’t come to Florida unless they act.
Scott’s announcement came after Bill Johnson, his economic development czar, took multiple shellackings from lawmakers on funding requests. State senators in particular have taken Johnson to task for asking for more money than they think he needs.
Scott spoke in Orlando at a meeting of Enterprise Florida, the state’s public-private economic development organization. Johnson is its president and CEO.
The governor proposes creating a $250 million “Florida Enterprise Fund.” Now, Scott relies on the Quick Action Closing Fund, a pot of cash that he can draw up to $2 million from without legislative approval.
He wants that new program to be a trust fund that “will remain untouched in the state treasury until companies under job creation contracts meet their job requirements,” he said in a prepared statement. “This will allow the state’s investment to accrue more interest.”
Scott wants to streamline authorization to dip into that fund by requiring any deal needing more than $1 million to get only the approval of the House Speaker, Senate president and governor, and not the whole Legislature.
And, as a sort of insurance, he suggests requiring a 10 percent annualized return on top of money doled out, “while eliminating the use of special waivers.
“If a deal over 10 years generates a 10 percent per year return and the state gets a 100 percent return on the initial investment, we will do the deal,” Scott said. “If it can’t make that return for taxpayers, we won’t do the deal. With the right resources and an improved deal-making process, Florida’s opportunities for jobs are limitless.”
He added: “Should another recession ever hit, I don’t want Florida to ever again dip into double-digit unemployment. Our families cannot afford it.”
Mark Wilson, president and CEO of the Florida Chamber of Commerce, said the new fund would help toward diversifying the state’s economy.
“That’s more important than the money,” he said, also referring to the streamlined way of tapping into the money.
The $250 million “is a good place to start, but getting faster decisions leads to better deals,” Wilson said.
The two senators most critical of Johnson’s funding requests – Republicans Nancy Detert of Venice, who sits on Enterprise Florida’s board, and Jack Latvala of Clearwater – could not be immediately reached for comment on Scott’s plan.
Detert chairs the Commerce and Tourism committee and Latvala chairs the Senate budget panel responsible for economic development funding.
Johnson has asked for $85 million for business incentives in 2016-17. Last session, he asked for $85 million in incentive funding, but only got $43 million.
Further, Senate figures show he has $112 million in unspent funds; Johnson has explained that’s money already committed for projects “in the pipeline.”
