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Issue 1: February 25, 2008
Topic 1: Health Care – Market Based Reforms
With the graying of the population, the issue of universal health care may not be a question of if, but when and how. This week, Governor Crist unveiled a health care proposal that utilizes market-based strategies to address the more than 3.6 million uninsured in Florida, while minimizing red tape. The proposal focuses on reducing rates by encouraging private insurers to compete to develop and offer flexible benefit plans for uninsured Floridians.
Florida Health News calls the plan “more modest than the universal coverage law now in effect in Massachusetts,” noting that the plan does not contain individual or employer mandates, or taxpayer funded subsidies. Addressing Florida’s dependence on service-related jobs, many of which come without insurance, the Governor’s proposal reduces coverage mandates, incentivizing companies to provide insurance, yet focuses on preventative care through flexible plans that leverage purchasing power and reduce premium costs.
Bottom Line: Affordable health insurance for employees without mandates is a win-win for everyone.
Topic 2: Tax Cuts – The Recapture Rule
This week, a little known glitch in Florida's Save Our Homes three percent annual cap on property tax assessments reared its ugly head. When the real estate market is booming, home values increase far above the three percent Save Our Homes cap and homeowners see substantial savings, but the recapture rule allows assessments to continue to increase three percent annually even when the market is flat or declining. Effectively, the rule allows property taxes to still increase at the three percent rate to "recapture" a portion of the difference between the homestead's taxable and appraised value.
Bottom Line: Unless this anomaly is fixed by lawmakers, homeowners could see a property tax increase of three percent per year, even when their home value is declining. However, as the South Florida Sun-Sentinel notes this week, Florida lawmakers fresh from a successful Amendment 1 campaign and multiple special sessions on property tax cuts are, “trying to shore up their tax-cut package with a bill that would eliminate the recapture rule, requiring assessed values to stay flat when market values decline.”
Topic 3: Budget Cuts and Economic Stimulus
Look for the Florida Legislature to introduce legislation the first week of session to cut hundreds of millions of dollars from the current 07/08 budget. Further cuts to the budget year may be needed during the 60 day session depending upon the March revenue numbers.
The Jacksonville Business Journal reports this week that new or expanded investments in transportation, water and affordable housing may be included in the proposed economic stimulus package aimed at spurring Florida's economy. Transportation projects produce a substantial return on investment while water projects create jobs and help form solutions to regional water supply issues. In an additional effort to address economic concerns, Governor Crist this week created a task force to develop a state action plan to address Florida's foreclosure rate.
Bottom Line: Florida has not experienced this level of budgetary decline in modern times. While there are substantive plans out there to tackle this issue, any new proposal with a price tag will be on life support, if not dead upon arrival, in this year's budget.
Topic 4: Going Green as Economic Development
The Financial Times this week comments on the rising impact of environmentally friendly investments, mentioning that fund managers and investment consultants are increasingly taking notice and holding companies accountable for their impact on the environment before deciding to invest. With investors paying attention, eco-friendly companies and new alternative and renewable energy projects and economic development initiatives are highlighted more so than ever before.
Additionally, through an aggressive energy and economic development legislative agenda Governor Crist has put Florida at the forefront of this movement. Just last week, saw both the opening of Cott Corporation's ‘Green’ Headquarters in Tampa and Florida Power and Light dedicating Florida's largest solar power facility.
Bottom Line: Green Technology is an up and coming investment opportunity and Florida businesses can reap the benefits.
Topic 5: Education – Rising AP Scores Good Sign for Workforce
According to the College Board report issued last week, Florida currently ranks fourth in the nation in advance placement student performance, with forty percent of last year’s graduating seniors taking at least one Advanced Placement Exam during high school and minority student achievement in AP courses outpacing the national average. Education Commissioner Eric Smith commented, "Students who take AP courses are not only more likely to go to school, they are more likely to graduate as well. As we work to increase our participation even further, we must encourage students to see themselves as college-bound."
“Florida’s achievements come from long-term support by the legislature and governors,” noted College Board President Gaston Caperton in the Fort Myers News Press.
Bottom Line: Florida’s emphasis on the AP exam develops talent for the Florida university system, and eventually the workforce.
Question of the Week
"I sold a Florida homestead during 2007 and purchased another homestead in 2007. What do I need to do as a result of the new property tax amendment?"
Things to Watch
Budget constraints, due to revenue estimates, could lead to a new formula for the Class Size Amendment.
The Taxation and Budget Reform Commission holds the authority to place an amendment on the ballot and to make recommendations on this issue to the Florida Legislature.
The Committee will hold meetings this week in Tallahassee.
Read More Here…
Governor Crist unveiled the prototype of an all-in-one GPS mapping, tracking and camera device that will be used by child and adult protection investigators.
Read More Here...
The House Select Committee on Condominium & Homeowner Association Governance has until March 3, 2008, to make proposals regarding state regulations on condo and homeowner association boards.
Read More Here…
The Florida Turnpike will soon debut a smaller and less expensive SunPass.
Read More Here...
