Backs to Business

Review Summary
What. The disconnect between business and local government lobbies.
Issue. Legislative programs of local government groups largely ignore state leaders' biggest priorities: jobs and the economy.
Impact. Local government lobbies' failure to see the big picture could dampen recovery.

Jobs and the economy head the list of legislative priorities of both the Legislature and Gov. Charlie Crist — and arguably the people of Florida.

But you won't find the words “jobs” or “economy” in the legislative priorities of the primary lobbying groups for local governments. What you will find in this devastating economic downturn is a focus on growth management and environmental planning.

The Florida Association of Counties and the Florida League of Cities represent local government agencies and not the private sector. Yet with statewide unemployment hovering near 12%, and local governments falling revenues tracking the economic slide, there is a distinct lack of support by the government groups for economic development-related bills in the Legislature.

Asked about that lack, Communication Director Cragin Mosteller, replied, “Clearly that's a very important issue. We hope that local governments are empowered to do it and provide economic development.”

And, in fact, though not identified as priorities, the league of cities at least is “watching” four economic development-related bills. But the only one it supports so far would provide funding for publicly owned and not-for-profit performing arts centers.

But of 16 economic development bills being tracked by business lobbying group Associated Industries of Florida, the league only has one on its radar screen — and that bill, aimed at encouraging more competitive bidding by contractors that should lower costs to local governments and taxpayers — is opposed by the league and supported by Associated Industries.

The reason for the league's opposition: the litmus test embodied in part of its mission statement: “The Florida League of Cities supports legislation that strengthens municipal self-governing powers.” Home rule trumps all.

By taking a narrow view of only how the bill stacks up against its members' focus on self-governing, a law that restricts a city's ability to interfere in free market competitive bidding is opposed because of its “preemption” of self-governance.

The legislation is a response to a growing group of city and county governments adopting so-called local preference ordinances. Those local laws are designed to award more contracts to “local” firms — a term with widely varying definitions — though a lower responsible bid may have been received from a company not located in the jurisdiction or within a defined distance.

Associated Industries and the Florida Chamber's legislative priority documents offer a striking contrast.

Barney Bishop, AIF's president and chief executive officer, writes in a cover letter to its 2010 Session Priorities report about “defending the principles of the free market,” adding, “We have never been as passionate about protecting Florida's business climate as we are today.”

AIF supports Senate Bill 1924, which prohibits local governments from granting bid preferences to local businesses — something that can also drive up the cost and lower the quality of work by limiting the market.

And in “An Open Letter to Florida's Leaders”, Florida Chamber Chair Steve Halverson, president of The Haskell Company, and Mark Wilson, president and CEO of the chamber, write, “Free enterprise is being challenged at every level...” and “...we urge the Florida Legislature to support our pro-jobs solutions to strengthen our economy and help create jobs now.”

The disconnect
“Diversifying Florida's economy is essential for prosperity over the next two decades,” according to the chamber report's section on innovation and economic development.

And for economic development it's this: “The Florida Chamber will work to transition our state into the new, innovation economy by fighting for policies allowing free enterprise, fair trade and competition.”

AIF's “2010 Session Priorities” includes a special section this year offering proposals for job creation.

Emblematic of the disconnect between business interests and the local government lobbies is how each viewed the unemployment compensation tax bill.

That bill, a top priority of AIF and the Florida Chamber, has already been approved unanimously by both the House and Senate and signed by the governor on day one of the 2010 regular session.

Without the legislation, a nearly 1,100% increase in the minimum unemployment compensation tax rate on businesses would have kicked in April 1, threatening to set off a new wave of unemployment claims.

As critical as the bill was to business and the overall economy, the local government lobbies stayed silent.

Now, with the that issue out of the way for this session, perhaps the next biggest issue for business interests is not a legislative matter, at least not this year.

But if Amendment 4, the Hometown Democracy — aka the “Vote on Everything” proposed constitutional amendment — passes in November, it could spawn new legislation next year to minimize the predicted $34.7 billion negative economic tsunami.

In the meantime, the league is on a lengthy and growing list of associations opposing Amendment 4. But the counties' lobbying group is not.

Mosteller says the FAC has discussed it many times, but has never taken a position on what many see as the biggest threat to Florida's economic future. Mosteller says there are plans to discuss it again March 24.

For its part, the chamber devotes four pages of “Where We Stand 2010” to “NO on Amendment 4: Bad for Homeowners, Worse for Democracy,” including a three-page list of 220 Florida-based associations and local governments united against it.

Associated Industries also recognizes the potential problems Hometown Democracy creates. In its legislative session report, it notes that with Amendment 4's approval uncertain, and legislators fearful of fanning the flames of the amendment's advocates, “neither the House nor Senate is expected to put forth an ambitious growth management agenda.”

But that didn't stop the FAC from devoting 15 pages, nearly half of its 2010 Legislative Program, to growth management and environmental planning, and also making it one of its top priorities.

Biggest showdown?
One area of conflict between the local government groups and the business groups relates to public participation requirements for a development order or a comprehensive plan amendment.

The league lists passage of the public participation legislation, House Bill 733 and Senate Bill 1942, as a priority item, seeing it as a way to chip away at support for Amendment 4. The FAC's report supports “legislative efforts to increase public participation in the local planning process,” but interestingly adds a big hedge: “provided those efforts do not create additional costs to counties.”

Associated Industries opposes it.

Perhaps the biggest showdown could come over Senate Bill 1742, sponsored by Sen. Mike Bennett, R-Bradenton, chairman of the community affairs committee.

Bennett sponsored last year's much discussed Senate Bill 360, the landmark Community Renewal Act, which removes a few of the many state layers of planning regulation. SB 1742 is largely a “glitch” bill to clarify various interpretations of its provisions, but the league claims it also “prohibits local governments from imposing more stringent transportation mitigation requirements beyond that specified in the statute.”

As such, the league opposes SB 1742 as an unfunded mandate and claims it preempts home rule authority. A group of cities and counties, led by the city of Weston, filed suit last fall claiming the act is unconstitutional for being an unfunded mandate requiring super-majority votes of both the House and Senate. Only the House action met that voting threshold.

In a year when legislative leaders have made it clear they are looking to shrink the regulatory burden and reduce red tape to spur the economy, it's no surprise to see an expedited permitting bill. House Bill 773 and Senate Bill 1126 are supported by Associated Industries.

The legislation, in part, reduces the number of jobs required by a business to qualify for expedited processes and adds certain renewable energy projects to the list of businesses eligible for expedited permitting. But, so far, the league hasn't offered its support and only has it on its watch list.

Because the FAC may view it as preventing counties from having stricter environmental programs than state or federal regulatory programs, the group may oppose the legislation.

Not all legislation is in conflict between the business and local government groups, however. The Florida chamber supports the governor's budget request for $50 million for Florida Forever, the state's land-buying program, and the FAC supports the program's continuation after a year's hiatus.

It's not a done deal, however, though powerful Senate President Pro-tempore Mike Fasano, R-New Port Richey, is sponsoring the Florida Forever funding bill.

Although AIF and the League haven't staked out clear positions on it, Rep. Trudi Williams, R-Fort Myers, chair of the House agriculture and natural resources committee, knows where she stands. Recognizing the potential $3.2 billion state budget deficit, she told a local chamber business group in Estero recently, “We don't need to acquire any more lands...It's basically silly.”

BOX
Contrast in Agendas
Business groups' and public sector Web sites' mission statements illustrate contrasting legislative focus.

Associated Industries of Florida has organized its lobbying effort toward promoting conditions of economic liberty to support job creators. The effort includes the following items.

• To research and analyze the impact of public policy on economic prosperity and actively promote policies that reflect the mutual interests of business and the citizenry.

• To identify impediments to prosperity and work to remove those impediments by developing policy alternatives.

• To defend the business community against those who would confiscate the rewards that follow from industriousness, risk-taking, and innovation.

Its Web site: www.aif.com.

The Florida chamber will continue to advocate for solutions focused on six key pillars, developed as a result of research conducted by the Florida Chamber Foundation. These highlighted pillars of Florida's economy will provide an opportunity for job creation, recovery and transition to the future: talent, innovation, infrastructure, business climate, governance, and quality of life.

Its Web site: www.flchamber.com.

The Florida Association of Counties helps counties effectively serve and represent Floridians by strengthening and preserving county home rule.
Its Web site: www.fl-counties.com.

The Florida League of Cities supports legislation that strengthens municipal self-governing powers. The league believes that key governmental services are best delivered under a system of maximum autonomy for municipalities.

Its Web site: www.floridaleagueofcities.com.

Jay Brady covers state and local government issues. He can be reached at {encode="[email protected]" title="[email protected]"}, or at 941-362-4848.