FL Legislature Creates New Department of Economic Opportunity

Florida lawmakers approved legislation to reorganize economic development efforts by establishing a new government-run agency to coordinate programs and adding divisions to the public-private partnership, Enterprise Florida. Within the newly created Department of Economic Opportunity, lawmakers established a trust fund and approved $125 million for strategic investments.

The Department of Economic Opportunity will coordinate services and programs related to economic development, workforce development, community planning, and affordable housing. Gov. Rick Scott proposed an economic development overhaul in his State of the State address to consolidate and streamline services related to job creation. Enterprise Florida will remain the state's primary organization for economic development and continue to lead efforts to recruit and expand businesses, according to Florida Trend. The Black Business Investment Board and the Florida Sports Foundation will become divisions within Enterprise Florida and Space Florida and Visit Florida will contract with Enterprise Florida, but remain independent, the article states.

HB 7205 creates the State Economic Enhancement and Development Trust Fund (SEED) within the new Department of Economic Opportunity, and beginning in July 2012, the bill redirects $75 million from documentary stamp tax revenues currently dedicated to affordable housing and $50 million currently dedicated to the state Transportation Fund into the SEED trust fund. Revenues are expected to grow to $75 million over the next three years.

Florida's space industry will receive more than $43 million in funding and tax credits for business recruitment, infrastructure and R&D in the coming year following budget approval. Space Florida is slated to receive $10 million for efforts aimed at job creation and business recruitment. Another $16 million in infrastructure funding was approved for launch support facilities within the Transportation Trust Fund.

Lawmakers passed HB 143 this session providing $10 million in tax credits to attract space-related businesses. The measure also allocates $7.1 million for R&D tax credits.

Funding for biomedical research was reduced by half under the budget agreement. A total $25 million will be transferred to the Biomedical Research Trust Fund within the Department of Health with $5 million each appropriated to the following programs: the James and Esther King Biomedical Research Program, the William Bankhead and David Coley Cancer Research Program, the Mofitt Cancer Center and Research Institute, Sylvester Comprehensive Cancer Center, and University of Florida Shands Cancer Center.

A full list of FY12 appropriations acts and conference committee reports is available at: http://www.flsenate.gov/Session/Appropriations/2011/Senate/ConfCommRprts.