Welcome to

US Senator Bill Nelson is asking private investors to help rebuild Florida if a major hurricane strikes the coast.

Nelson will file legislation allowing the federal government to backup investors who loan the state money after a storm. Many fear the state’s Catastrophe fund isn’t strong enough to handle a major storm in some of the state’s more populated areas. Nelson said Florida will need help sooner or later.

“So one of the things today that I’m going to file is an act and it is that there would be a federal guarantee for private sector loans to be repaid at fair market value interest rates so that an institution like the Florida cat fund not just in this state but in any state where the cat fund would have the ability of that backup,” said Nelson.

Nelson is also asking the Secretary of the US Treasury if current law would allow Florida to take out federal loans to back up the state catastrophe fund.

Today began the fourth week of the Florida Legislature’s 60 day session.  Few bills have been passed, budget negotiations remain stalled and as Mike Vasilinda tells us, some are concerned the process is moving so slowly, it will require expensive overtime to get a budget.

The Capitol’s fourth floor was a ghost town Monday morning. The removal of former House Speaker Ray Sansom and the election of Larry Cretul has caused an internal upheaval, delayed sending bills to committees and has put lawmakers weeks behind schedule.

“When you have a speaker that is under pressure, everyday, from the press, to answer questions and I think that it diverted their attention,” Barney Bishop with Associated Industries said.

Democrats are saying the first 20 days of the session have been wasted.

“More than 10 percent of Floridians are on food stamps and still we have no action going on in the House. We have no budget to look at,” Democratic leader Franklin Sands said. “We’re wondering, when are we going to start working for the people of Florida?”

This is session number 48 for lobbyist Dick Hollahan. He says lawmakers can act as quickly or as slowly as they want, and they always have.

“If they want it in 30 minutes, do it in 30 minutes. Some leader decided that,” Hollahan said.

The lack of a clear direction here is starting to concern school boards and other local governments because they’ve got to start planning for their budgets.

The downside of not getting done on time is money and overtime.  Legislative session costs at least 40,000 dollars a day and to many insiders, overtime looks more likely with each day that passes.

Lawmakers plan to begin budget negotiations by April 8th.  Session is scheduled to end on the first of May.

A proposal to cut state workers salaries to help balance the budget is causing outrage among lower paid employees. More than a thousand people make six figures for the state. As Whitney Ray tells us, lawmakers could vote for larger cuts for those employee making big bucks.

State workers rallied at the capitol this week trying to save their salaries. A proposed five percent cut for all state employees has workers on the bottom of the pay pool furious. Now, lawmakers will consider bigger cuts for the higher paid.

“Maybe we should look at the compensation of our agency heads, our higher paid employees as opposed to just cutting everyone equally across the board,” said State Senator Dave Aronberg.

Representative Will Weatherford says it’s not fair to ask everyone to pay the same price.

“A 5,000 dollar cut to a person making 100,000 dollars a year is a bigger cut overall; it’s not as significant to their pocket and so we are going to be very diligent and careful as to how we do that,” said Representative Will Weatherford

While salaries are on the table, benefits, like health care, life insurance and retirement are not. More than 26,000 top level employees don’t pay a dime for health insurance.”

Benefits for lawmakers, including free health coverage, costs taxpayers. Governor Charlie Crist defends the spending.

“People who work in Government typically don’t make as much as many in the private sector and it’s one of the benefits that can keep such talented people here,” said Crist.

If every state worker paid premiums for their health coverage, the state would save an estimated 45 million dollars a year.

Governor Charlie Crist makes $133,000 a year. His benefits are worth $33,000. A doctor for the Department of Health is the top paid state employee. Dr. Patel Bhupendra makes $895,000 a year. State lawmakers who work part time make $30,000 a year, and receive $18,000 in state benefits.

The economy is taking a huge toll on Florida’s pension fund. The fund dropped about 20 percent of its value over the past year. Still Florida’s fund is among the healthiest pension plans in the nation, because it held an eight billion dollar surplus before the economy went south. Florida’s Chief Financial Officer Alex Sink says retirees depending on the fund shouldn’t worry.

“The pension fund is very sound and certainly they’ve taken a hit just like anyone else’s investment portfolio has taken a hit over the last year, but fortunately here in Florida we started off in an overfunded position so we had a cushion to begin with,” said Sink.

If the fund drops too much, city and county governments could be asked to put more money into the system. CFO Sink says she doesn’t see that happening anytime soon.

The Governor’s office is ordering state agencies to hold back 15 percent of their fourth quarter budgets. The quarter begins in April. The announcement was made yesterday just hours after reporters asked Governor Charlie Crist if he was anticipating any holdbacks.

“’Are you anticipating some form of announcement from you regarding additional holdbacks. Maybe as much as 15 percent,’ one reporter asked Crist ‘Not that I have been briefed on,’” Crist replied.

Governor Crist tries to distance himself from bad news. He’s remained optimistic about the state’s economic turmoil ever since he took office. Crist says the current 3.4 billion dollar budget hole can be filled with stimulus money.

Rural Gulf County hugs the coast 100 miles southwest of the state capital. Budget cuts were about to close several schools and 38 jobs were on the chopping block. But as Mike Vasilinda tells us, voters in Gulf county chose schools over lower taxes.

At 8.8 percent, unemployment in Gulf County, Florida is just above the state average.

This is a conservative place. George Bush carried the county twice and John McCain won here with 74 percent of the vote.

But with budget cuts about to close schools and cause 38 layoffs, voters here on Tuesday approved a hike in property taxes. Jeanie Day is one of 2400 people who said yes.

“Because we need the money to keep our schools like they are and the curriculum and the teachers and the sports,” Day said.

The vote was close. 54-46.

“The economy’s bad,” Ronald Mayhew said. “Everyone’s cutting back. The schools can do the same thing.”

Teacher Aimee Walsh says kids won in the end.

“I think, when it comes down to it, people really care about children and care about education,” Walsh said.
But Governor Charlie Crist says there is no statewide trend here.

“Well, maybe 2400 out of 20 million might be willing to do that,” Crist said.

But the superintendent who pushed the tax hike says state lawmakers should get a clue.

“We had Alachua County that passed a 1million increase. You’ve had Gulf county now pass a 1 million increase,” Tim Wilder, Gulf County superintendent said. “You’ve had Franklin County do a swap with 70 something percent of the vote. You’ve had Walton County do a swap with 80 something percent of the vote. So you’ve not had anybody get beat with this yet. Which tells me that people do care about education.”

The higher tax will expire in 4 years.

Higher college tuition rates are one step closer to reality. A legislative committee has given state universities authority to raise tuition 15 percent a year. As Whitney ray tells us, if you are counting on Florida prepaid or Bright Futures to cover the cost, think again.

Budget cuts are forcing state universities to drop classes and cut staff. Lawmakers are targeting students to stop the brain drain. A plan to allow universities to raise tuition 15 percent a year is gaining momentum in Tallahassee.

“We are one of the lowest in tuition and it’s not that we want our students to pay more because we feel like they’re not paying their fair share, it’s just that the money has to come from somewhere,” said bill sponsor Will Weatherford.

Some fear the increase would make college too expensive for lower income students. Bright Futures wouldn’t cover the tuition increase. Families with a Florida Prepaid Plan would have to buy extra coverage to make up the difference. Prepaid Tuition Founder Stanley Tate calls the tuition hike outrageous,

“It’s just outrageous and lower income people just won’t be able to afford it,” said Tate.

Student body leaders say the increase is needed because the quality of their education is suffering.

“It’s getting to the point where it is difficult not just to get the classes that you want, but to get the classes that you need to graduate on time,” said Chris Krampert with the Florida Students Association.

Opponents plan to buy newspaper and magazine ads to rally support. Lawmakers say they’ll work with prepaid board members to create new tuition investment options.

Prepaid Founder Stanley Tate says if lawmakers give universities the authority to raise tuition, the price of a prepaid plan would double by 2012.

State Democrats are calling on congress for universal health care.

Florida lawmakers are joining the Florida Alliance of Retired Americans to urge congress to act quickly. Nearly 4 million Floridians don’t have health insurance. State Senator Dave Aronberg said children are paying the price.

“Working people should be able to find a doctor for their sick child. Who could argue for that? Every family should have a family doctor and that’s what this is about. This is about making sure we control health care cost, because right now the health care system is dependant on emergency rooms’ for basic health care,” said Aronberg.

More than half of all people who filed for bankruptcy say medical bills drained their bank accounts.

Representative from Florida’s film industry are asking the state for a tax break. Movie moguls met with Governor Charlie Crist at the capitol Thursday.

Crist is asking the state legislature to approve 10 million dollars in incentives for the industry to attract more movie crews to Florida. More than 200,000 Floridians work in the film industry. State Representative Jennifer Carroll said if the state will give the industry a break, more jobs could be created.

“It is important for our legislators to see that if we just give another inch to the film industry with regards to the tax credit that could come about we can create so many miles moving forward for economic stimulus,” said Carroll.

While many Republicans are supporting more tax breaks for the film industry, some Democrats are opposing the plan. They say the state needs to look at all revenue sources to fill the state’s 3.4 billion dollar budget deficit.

Pressure is building on auto insurers in Florida to stop using credit scores to set auto insurance rates. Two bills to prohibit the practice are pending before state lawmakers, and as Mike Vasilinda tells us, the legislation got a big boost today.

In February, the insurance industry testified the use of credit scores was a better predictor of risk than how many tickets or accidents may be on your record.

What the industry couldn’t or wouldn’t answer for regulators was why.

CFO Alex Sink asked the same questions and came away dissatisfied with what she was told.

“Well that’s the same kind of BS that they gave me when they came to meet with me and that’s what I think it is,” Sink said. “They can’t explain themselves.”

Sink and her insurance consumer advocate are calling for an end to the use of credit scores completely in insurance rate setting.

Rep. Priscilla Taylor has one of two bills are pending before state lawmakers.

“Because in some cases, individuals are paying 75 to 80 percent for insurance who have no tickets, no violations, only because they have a low credit score,” Taylor said.

But auto insurers are sticking to their guns, saying people with good credit will pay more for insurance if credit scores aren’t part of the calculation.

“I can’t give you details of how the studies are done,” Gary Landry with the Florida Insurance Council said. “These are scientific studies that have been done repeatedly and these studies have shown those who manage their credit wisely are a better risk.”

In addition to legislation, insurance regulators are also considering a rule to prohibit credit scores from being part of the rate setting process.

Governor Charlie Crist unveiled a new web today designed to help people learn more about Stimulus cash flowing into the state. 

A link on the web site will explain what loans or credits are available to new home or car buyers, as well as every dime sent to cities and counties. The Governor says the site will help make sure the money is being spent wisely.

“Through Flarecovery.com, people will have the opportunity at their convenience, at their time of choosing, to review these federal dollars, how they’re spent, where they’re spent, what projects are included, how it helps their community, in any of the 67 counties across the state of Florida,” Crist said.

The site details time lines for applications and waivers to be filed to get the money. There’s just one hitch: State lawmakers have yet to approve the spending of any stimulus money and may not.

More than a thousand parents, teachers, and students rallied on the steps of the state capitol today. The group is asking lawmakers to eliminate tax exemptions, raise the cigarette tax and pass a temporary one cent sales tax to fund schools. As Whitney Ray tells us, the group brought 2.6 million pennies with them to support their call for change.

They came by the bus load, bringing boxes, buckets, and bags full of pennies. Parents, teachers, and students unloaded 2.6 million pennies near the capitol, one for every student in the state.

The group rallied in support of a temporary one cent sales tax increase to fund schools. Education funding has fallen four billion dollars over the last two years and lawmakers could vote to cut more. For many the rally is a last ditch effort to save jobs at their schools.

Polly Roper is the principal at an Orange County Elementary School. She has to cut 900,000 dollars from her budget.

“It’s horrible. I’m looking at people who have been at my school 25 and 30 years who are going to get cut because I might have to cut all my classified people,” said Roper.

Florida Education Association President Andy Ford said changing the state’s tax structure can’t wait.

“Not next year, not next session. Not after the next election. Not sometime in the future, but now,” said Ford.

But while the crowd cheered on new taxes for schools, legislative leader don’t seem poised to join in on the celebration. The 26,000 dollars worth of pennies are being donated to the Children’s Home Fund, a charity helping underprivileged youth.

Lawmakers will decide if a constitutional amendment giving Florida teachers a pay raise will be on the 2010 ballot.

Democratic lawmakers are pushing the amendment that would require teacher salaries to stay at or above the national average. Right now Florida teachers make about 47,000 dollars a year. The national average is 51,000. House Democrat Geraldine Thompson says the pay is driving teachers out of the state.

“We have teachers who live in Florida, but they drive to Georgia, they drive to Alabama to teach so they can make more money and that should not be the case,” said Thompson.

If the amendment makes the ballot it would need 60 percent voter approval to pass. Then schools would have until 2012 to raise teachers’ salaries.

Supporters of a controversial plan to spend state money to build a commuter rail rallied at the capitol today. Chamber of Commerce leaders from eight counties voiced their support for the CSX SunRail. Legislation to create the commuter rail would cost the state 850 million dollars. State Senator Lee Constantine said it’s a good investment.

“The question is now are we looking for an economic stimulus so we are not depending on the federal stimulus package, yes. This could provide jobs right away, this could provide transportation,” said Constantine.

Opponents of the SunRail take issue with a portion of the deal that allows victims to sue the state for accidents or deaths on the tracks.

State workers facing the uncertainty of five percent pay cuts, furloughs or outright firings spent the day walking the hallways of the state capitol talking to anyone who would listen. As Mike Vasilinda tells us, uncertain legislative action has many workers on pins and needles.

Bob Ruggiero spent the day walking the capitol hallways. Bob makes twenty-six thousand dollars a year working for the Department of Juvenile Justice in Tampa and says the last thing he says he can afford is a pay cut or a layoff.

“I have bills. I have a car payment, cable, mortgage, food bill, telephone,” Ruggiero said. “Any reduction in my salary would hurt.”

As the workers looked for sympathetic ears, Governor Charlie Crist said he’s hoping to avoid both tax hikes and layoffs by using stimulus money.

When asked if state workers should be worried, Governor Crist replied, “I would hope not.”
But CFO Alex Sink says some tax exemptions will have got to go.
“If somebody is paying 1,000 dollars to go to a Super Bowl game, they can afford an extra 60 bucks in sales tax,” Sink said.

There are a lot of ideas being tossed around and the only uncertainty is that what to do about taxes and state employees will dominate the next 6 weeks of the session.

The uncertainty has Sandra Graham of Stuart arguing that pay cuts won’t help her or the economy.
“It would not only hurt me, it would hurt the people who provide daycare for my children because I will no longer be able to afford to send them to daycare. I’ll probably lose my home,” Graham, a school board employee, said.

And while lawmakers may be able to brush off the union members, hundreds of parents and PTA members are coming with the same message Wednesday.

Senate President Jeff Atwater has already said some taxes or fees need to be increased to minimize damage done to the workforce, but counterparts in the state house are offering only budget cuts.