House lawmakers discussed Florida Gov. Rick Scott’s $250 million plan for attracting businesses to Florida Thursday. Many have misgivings even after a slew of changes.
Using a mix of state and private funds Enterprise Florida offers incentives to bring businesses to Florida as well as retain homegrown operations looking to expand. The organization sets aside money and then hands it over to the business as it meets employment benchmarks. Enterprise says these safeguards insure the businesses make a substantial contribution to the state economy. But the scheme has its critics, perhaps the loudest is Sen. Jack Latvala (R-Clearwater).
Thursday Enterprise Florida executive Crystal Sircy explained the organization’s new proposal addresses one of his major concerns.
“There was a concern about earning higher interest on the money that is housed within the fund waiting for companies to meet performance milestones,” Sircy says, “so transferring from an escrow fund to a state trust fund allows higher return on those moneys.”
But some lawmakers balk at the price tag. Sircy assures lawmakers the $250 million her organization is asking for will be spread over three years. But she says the large size of the appropriation is necessary to get a seat at the table. She points to a deal Volvo inked with South Carolina worth $30 million as well as her efforts to bring the Mercedes corporate headquarters to Florida.
“In the end they chose Atlanta,” Sircy says. “They could give a number of reasons for that decision, but principally there was a significantly higher incentive award made in Atlanta than Florida was able to offer—$23 million versus $10 million from Florida.”
But Democratic Rep. Bobby Powell (D-West Palm Beach) says Enterprise Florida’s math doesn’t quite add up.
“You indicated that we lost Mercedes to Georgia correct?” Powell asks, “and I see that Georgia’s fund is at $46 million—we’re asking for $250 million.”
Thursday’s presentation was only informational so lawmakers didn’t take a vote on the Governor’s plan. Once it begins working through committees the path could be bumpy. In the House, Economic Affairs Chairman Rep. Jose Oliva (R-Miami) is skeptical of Enterprise, arguing large companies can use the programs to flit from state to state whenever incentive funding runs out.
