Business, economic leaders set sights on 2008 legislative session

Florida's business and economic leaders have big demands and high hopes for this year's legislative session.

They will fight for lower taxes and more government money to support job creation. They want property tax and insurance reforms, smarter growth management and more money invested in research and development.

It doesn't stop there.

They're focused on improving career education, finding alternative energy solutions, promoting more affordable housing, defending the constitution, protecting private property rights and more.

With the 2008 session set to begin Tuesday, money for education and training is a top priority for the Greater Naples Chamber of Commerce.

"Obviously, we are concerned about taxes. The other side of the coin, however, is we are terribly concerned about the schools. The bottom line is that Florida is 46th in the United States for education," Chamber president and CEO Mike Reagen said.

The Florida Chamber of Commerce is pushing what it calls an "Agenda for Jobs" this session.

Although state lawmakers face another tight budget year, now is not the time to cut back on investments in economic development programs, Chamber spokeswoman Jennifer Krell Davis said.

In fact, now it's even more important to put money into businesses to help turn the economy around, she said.

"We understand the Legislature needs to make tough choices with their dollars this year. However, we feel like investing in the economy brings more jobs and brings more money to the economy. At a later day, it brings more people to the tax base," Davis said.

The state chamber and other groups are pushing for more tax breaks for companies involved in research and development and are lobbying for a new incentive program that would provide matching state dollars to start-up companies that receive federal money for innovation and new technologies.

The matching grant program would offer $5 million annually.

House and Senate bills already have been filed to create it.

Too often, small businesses in Florida are forced to bring their products to market elsewhere because it's hard to find enough money to do it in this state, Davis said.

Research shows that for every $1 invested in research and development there's a $3 return, according to the Chamber.

As business and economic leaders push for new incentive programs to grow companies here, they'll fight to keep the old ones.

Their wish list includes:

* $15.5 million for Enterprise Florida, Florida's economic development agency. The money would cover operations, including marketing. For the past two years, the agency has received $12.5 million.

* $150 million to $200 million for an Innovation Incentive fund designed to bring world-class research centers and high-impact development projects to the state.

* $19.8 million for the Qualified Target Industry tax refund program, which offers tax breaks to companies creating high-paying jobs in growth industries, such as aviation.

* $3 million for military base protection.

* $4.5 million to protect Florida's defense industry.

* $45 million for the Quick Action Closing Fund, which the governor can use as an extra incentive to persuade companies to relocate in Florida, or keep them from moving out of state.

* $50 million for the Economic Development Transportation Fund, designed to alleviate transportation problems that may keep businesses from locating or expanding in the state.

"I think it's important to support these programs because they are designed to boost the economy," Enterprise Florida spokesman Stuart Doyle said. "We may be facing challenges now. But we have to look at and consider the long term."

For every $1 the state invested in Enterprise Florida and incentive programs last year, there was more than a $5 return, he said.

"We certainly make our money back," Doyle said.

"While we wish that it did not come to incentives, the reality is that regions across the country and across the world are luring businesses and jobs their way with much larger economic incentives than Florida traditionally has offered, said Amy Evancho, president of the Florida Economic Development Council Inc.

"While not all companies need or require incentives, for those that do it is imperative that Florida be able to compete on a level playing field with other regions, states, and countries."

Gov. Charlie Crist's proposed 2008-09 budget includes more than $326 million in economic development incentives. He's recommended investing

$200 million in the Innovation Incentive program, with up to $100 million going toward alternative and renewable energy innovations.

He also wants $45 million for the Quick Action Closing Fund.

Crist is looking to increase the state's film and entertainment incentive from $25 million to $45 million.

Last year, the money went quickly. It attracted 41 productions, which are expected to have a more than $151 million economic impact, according to the governor's office.

By December 2007, 10 productions with the potential to generate another $60.8 million in expenditures couldn't get incentives because the money was gone.

As part of an effort to stabilize the business climate, the state chamber is pushing for lower property taxes and more reductions in property insurance rates.

It supports Senate Bill 678, which would eliminate the presumption of correctness in property appraiser assessments.

Sponsors include Mike Fasano, R-New Port Richey.

"Right now the burden of proof is very high. A lot of businesses are not challenging their assessments at all because they don't think they have a shot of success within the court system," Chamber spokeswoman Davis said.

While the recently passed Amendment 1 offers a 10 percent annual cap on assessment increases to commercial and non-homestead property, it's not enough, Davis said.

The chamber wants to see that cap lowered to 3 percent to 5 percent.

Florida's business owners still are struggling to find affordable hurricane insurance.

As a result, some are not expanding here or are choosing to move out of the state. Business groups are hoping to see legislation pass this session to help.

Hurricane insurance is expected to be at the forefront during the session with a proposal to revamp the state's Catastrophe Fund, cutting it from $28 billion to $25 billion.

The Cat fund was created years ago to help insurers pay claims when there's a catastrophe.

Last year, lawmakers doubled the size of the fund, offering insurers backup hurricane coverage at a fraction of the cost in an effort to lower home insurance rates.

But rates didn't come down as much as expected, with more profit going to insurers.

Affordable health care still is a big concern for businesses.

"Health care has become a hot topic here. Small business owners and their employees make up the largest group of the working uninsured," said Allen Douglas, Florida's legislative director for the National Federation of Independent Business.

The federation supports a health-care plan proposed by Crist that would insure the uninsured.

It would guarantee coverage for all Floridians between ages 19 and 64 to offer "preventative, primary and urgent care benefits" for $150 or less a month through negotiated contracts with private insurers.

"The devil is in the details," Douglas said. "But something can be worked out there."

As usual, he expects legislators to file about 2,000 bills this session.

"I've got so many bill numbers in my head right now," he said. "They are filing so many every day."

The federation also backs Senate Bill 1488, which would require health-care companies to give patients an estimate of charges.

The Economic Development Council of Collier County plans a trip to Tallahassee in a few weeks to meet with the governor and lawmakers about its priorities, which include encouraging the development of more affordable housing and more money for transportation improvements.

There's no way to know how businesses will do this session, said Bob Mulhere, chairman of the EDC's legislative policy committee.

"It's hard to say right now," he said. "It really sort of has to be put in the meat grinder and stirred around a bit, and then spit back out."