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Florida’s Chief Financial Officer says the state’s checking account is still in the black, for now. California and Kansas are having problems paying state employees.

Kansas is too broke to write tax rebate checks. Florida has more than 13 billion dollars, but most of the money is tied up in investments. Lawmakers will be asked to balance the budget again in March. CFO Alex Sink says by then the deficit projection could reach half a billion dollars.

“They’ve got to plan ahead and stop in their tracks and figure out where to get the other half a billion dollars if that’s what it’s calling for, or otherwise we could get in that situation, like Kansas and California, where I’m the state treasurer and if I don’t have the money in the checking account, I can’t write the check,” said Sink.

Not only will lawmakers continue to work on this year’s budget; next year’s budget could be five billion dollars short.

A major Florida union is endorsing United States Congressman Kendrick Meek in his campaign for U.S. Senate. Service Employees International Union, or SEIU, is behind Meek, calling him a champion for service workers. Meek says he is ready for the challenges ahead and hopes his record in the state legislature and 8 years in Congress  will speak for itself. Meek was the first person to seek the job and recent speculation on Governor Charlie Crist entering the race has not scared Meek.

“If the Governor is considering running he’s on the list of many,” Meek said. “I can tell you this, titles don’t win elections, people do, and my track record with people is a good one and I think that’s the reason why I’m standing here with SEIU today.”

SEIU Florida represents 45,000 active and retired members across the state.

Governor Charlie Crist met with several agency heads at the Capitol to get the latest on what the Federal Stimulus package means for Florida. Based on what his budget chief knows now, Florida is in line to get a total of 12.2 Billion dollars over the next three budget years, which includes several billion for the rest of this year.  Road Construction  projects in the package will amount to about 5 billion, which the Governor says will add up to a lot of people working.

“For every billion dollars spent in transportation, it’s supposed to be close to 30,000 new jobs, I think it’s 28,000 new jobs,” Crist said. “So we’re looking at a lot of new jobs for Florida. That’s a great thing. You know, my greater hope, obviously it always has been, is once we get this infusion of infrastructure and education funding, healthcare funding, that this will be a bridge to Florida’s brighter future, when our economy actually starts to turn around. I can’t wait for that, for our people.”

Most of the construction money will go directly from the Federal to local governments.

Hundreds of State Farm customers started calling the Chief Financial Officer’s hotline when the state announced it has approved the company’s withdrawal from Florida. What triggered the panic, as Mike Vasilinda tells us, was the order for the company to surrender it’s certificate within 30 days.

Hear it Here:

The Chief Financial Officer’s hot line received 170 calls from State Farm customers Friday afternoon. More State Farm customers were on the line Monday morning.

“They’re concerned, they’re worried about going to another insurance company,” Tammi Torres, Consumer Affairs Director, said.

What sparked the panic was an announcement Friday that State Farm must surrender its certificate of insurance within 30 days. Insurance Commissioner Kevin McCarty explained the order this way:

“This does not, in any way, jeopardize the policy holders in the state of Florida,” McCarty said.

Even with the order, State Farm customers will have at least six months and perhaps up to two years to find replacement coverage. Policy holders should know when their policy expires and begin looking for that coverage now.

State Farm agents continue to be told by the company not to talk. Anecdotally, we hear that every time there’s a news story, agents’ phones start ringing off the hook.

Governor Charlie Crist also says there is no need for panic.

“There shouldn’t be panic among those who may have had State Farm policies,” Crist said. “They’ll be a period of time within reach that they will be turned over to additional companies. There’s 40 new companies that people can look to for property insurance.”

State Farm has about two and a half weeks to decide if it will challenge the order..especially the condition that its agents be allowed to write homeowners policies for other companies.

The Leon County Grand Jury that was set to investigate former House Speaker Ray Sansom was supposed to meet on Tuesday, February 17th…Now it will convene a week later, on the 24th of February. On the agenda, a first degree murder case in the morning, then Sansom’s dealings with Northwest State College and the defunct Biomass plant for Tallahassee.

State Farm will soon be out of the business of selling homeowners policies in Florida. The state today approved a two year withdrawal by the company, but as Mike Vasilinda tells us, there are conditions and a possible legal battle.

Here it Here:

State Farm has been given the go-ahead to drop more than 700 thousand homeowners’ policies over the next two years. The plan requires at least 6 months notice. State regulators say they would not be giving the approval if they thought it would be hard for people to find replacement coverage.

“I would submit to you that the investors and companies that are looking at this are very anxious to do business with State Farm agents and policy holders, because I think these are some of the better risks in Florida,” Insurance Commissioner Kevin McCarty said.

The withdrawal is conditional. Policies must go to private companies, not the state. To make that happen, State Farm must let its agents write homeowners for other companies, something it has been reluctant to do. The company has 21 days to contest the order.

The good news in this order, unless State Farm contests it, is that agents will be able to continue their relationship with their customers.

State Farm said it is studying the order.

“It is our sincere hope that we can we can work with the OIR to establish a way for State Farm agents to service policies out of State Farm Florida,” State Farm spokesman Michael Grimes said.

The biggest battle may be over lucrative auto policies. State Farm wants to keep the business. State regulators say current law may force them to give it  up. And the argument could end in court because the company is transferring policies from one company to another to skate the law.

Florida could miss out on 4.5 billion dollars from the Federal Government for education. A clause in the federal stimulus package withholds money from states whose education spending has been cut too deeply. Florida’s congressional delegation is working to amend the plan, but as Whitney Ray tells us, education advocates say the state may be missing the bigger picture.

Hear it Here:
Education Funding in Florida is at a four year low, and to add insult to injury, the state stands to lose as much as 4.5 billion federal stimulus dollars because education spending is below 2006 levels. Florida TaxWatch says withholding the cash is unfair.

“It’s counterintuitive. We have a stimulus package because states are suffering, but those who have suffered the most and are unable to fund core services don’t get money because they’ve suffered the most and can’t fund core services,” said Rob Weissert a spokesman with Florida TaxWatch

The fight is on to amend the bill so Florida schools could receive all the money.

The Florida Education Association is supporting the efforts but says the fact the money is even in jeopardy should send a message to state lawmakers.

“Maybe the light goes on over the heads of some legislators there and they understand that our constitution says funding a good, high quality system of public education is of paramount importance,” said Mark Pudlow, a spokesman with the Florida Education Association.

But Governor Charlie Crist is quick to defend the legislature.

“Everybody understands that this is a difficult economic time and we’ve had to reduce our spending in Florida by almost 7 billion dollars over the past two years and they’ve tried to do the very best they can in these difficult circumstances,” said Crist.

Should Florida lose the money, the governor is prepared to appeal. Without the 4.5 billion, Florida would still receive 10 billion for schools, roads, and Medicaid.

Florida is missing out on an estimated two to four billion dollars in sales tax revenue every year. The state depends on the honor system to collect taxes on internet purchases. It’s not working. As Whitney Ray tells us, lawmakers are banking on a bill to synchronize elements of the state’s tax code with other states to make paying internet sales taxes easier.

Hear it Here: The Internet Sales Tax Slip

Catherine Given bought these shoes online.

“’Do you know if you paid sales tax on those shoes when you bought them,’ asked a reporter. ‘I have no idea. I know they were 39.99 and I paid that amount,’” said Catherine.

Catherine isn’t the only one cheating the state out of tax dollars.

“‘Do you pay sales tax when you buy online,’ college senior Andre Oliu was asked. ‘Not really, especially now with the economy they take away a lot of the shipping and taxes and stuff, so 10 bucks in ten bucks,’ he answered. ‘Do you know you’re supposed to pay sales tax?’ ‘I don’t know. I don’t know if I’m supposed to or not’”

Floridians who buy online are supposed a internet sales tax form and pay the state a six percent sales tax. Most online stores don’t collect the tax, which adds insult to injury for in-state shops already at a disadvantage.

Florida retailers have to employee sales clerks with obviously cost more. Plus online shops can charge less because they don’t include sales tax in their pricing.

Lawmakers want to synchronize elements of Florida’s sales tax code with 22 other state’s to simplify the payment process. The plan could net as much as 40 million it’s first year.

“If we get this in place there will be many who comply on a voluntary basis, the sellers and the buyers, who would pay their tax,” said State Senator Evelyn Lynn.

For stricter enforcement and to net the estimate two billion owed, state lawmakers are also asking Congress for help. Last year only 3,000 internet tax forms were filed in Florida.

Governor Charlie Crist is banking on Washington to erase current and future state budget shortfalls.

Congress is expected to take a final vote on the 789 billion dollar package Friday. Florida’s cut is expected to be at least 10 billion dollars. Early estimates show the state’s deficit could reach 5 billion dollars by next year. Governor Charlie Crist said the money is badly needed.

“I’m very pleased that it looks like a deal is close to being reached as it relates to the stimulus package. What we were looking at just a few months ago, was no stimulus at all. So when you compare where we were to where we are now, I’m very, very pleased for my fellow Floridians,” said Crist.

The package is expected to create 200,000 jobs and jump start road projects in the state. The money will also be used for education and Medicaid programs.

Lt. Governor Jeff Kottkamp is fighting back, saying media reports of a 400 thousand dollar travel budget are wrong. As Mike Vasilinda tells us, the Lt. Governor says the original facts were exaggerated.

Hear to Here: Kottkamp Fights Back

Florida is already paying for two planes and six pilots, and the Lt. Governor says those costs should not be included when figuring the cost of his travel. In an email to supporters, Jeff Kottkamp says reports of spending over four hundred thousand on travel are exaggerated. Back in Tallahassee for the first time since the story broke, Kottkamp says the actual cost over two years was just 86 thousand dollars.

“It is a big state, but we’re very, very aware of the budget situation in the Governor’s office,” Kottkamp said. “We’re trying to be good stewards of the people’s money and, where we can, drive.”

In his email, the Lt. Governor pointed out that as early as 2007, he was urging the state to sell one of its three planes.

The state ended up getting 1.35 million for one of two King Airs it owned last November.

Usually quick to pile on, state Democrats have yet to utter a word of criticism for the travel. Asked if he was satisfied with his second in command’s explanation, Charlie Crist responded:

“I am. I am.”

The Lt. Governor has sent the state a check for just over 66 hundred dollars to cover travel for his wife and young son, even though state policy when they traveled in 2007 did not require payment.

In addition to being Abraham Lincoln’s 200th birthday, today is also the 100th anniversary of the NAACP.

Governor Charlie Crist spent the morning with Black leaders for a Civil Rights Roundtable at the Governor’s Mansion. Crist also appointed NAACP State President Adora Obi Nweze as a special advisor on civil rights. Nweze says it is the first time any sitting NAACP officer has received such an appointment.

“First of all, you’re the first governor, in this United States, to appoint a president of the NAACP state conference to minority outreach. The first one,” Nweze said. “ That speaks, not only to his heart, but to what he believes is a mission and goal for this state, and that is to include everybody under the tent.”

Crist also met with the House Black Caucus and is holding a Black History Month celebration at the Governor’s mansion tonight.

Governor Charlie Crist is about to appoint his fourth pick to the Florida Supreme Court and he is getting a full court press from all sides of the political spectrum.

From the right, the Governor is being pushed to appoint a conservative white male, Judge Jim Perry from Brevard County. From the left, he is being asked to pick an African American or a woman. Crist says neither side will influence him.

“Well, you know, any appointment to the Florida Supreme Court I weigh very heavily, and look for the very best,” Crist said. “In these interviews what I always look for, whether it’s a Florida Supreme Court Appointment or a Circuit court appointment, is somebody who is intelligent, compassionate, humble, and earnest. And that same test will apply for this next appointment to the Florida Supreme Court.”

Crist will make an appointment before March.

Schools days could get longer next year, but there would be fewer of them under a plan being considered in Tallahassee. As Mike Vasilinda tells us, school districts are asking for the flexibility to go to a four-day week.

As schools look for ways to make ends meet, they want authority to make school days longer, while going from five to four days a week. The idea is being pushed by the Superintendents Association, which knows it will upset parents who will need another day of childcare.

“Those parents will be quite upset,” Bill Montford, with the Florida Association of School Superintendents, said. “But, most parents in Florida who have children in schools are upset already because of the decisions we’ve already had to make and the other decisions, much tougher decisions that are coming in the very near future.”

A four-day school week would save fuel for buses, electricity, and support staff salaries. But Florida’s Education commissioner is not happy.

 “We have made our position clear to districts that we’re not supportive of advocating for a four day week for school” Commissioner of Education Eric Smith said.

The bill’s sponsor says the intent is flexibility. The savings it generates could offset the need for higher property taxes to keep schools running.

“For me, it is an attempt to save programs for students by allowing them that flexibility,” Sen. Evelyn Lynn (R-Daytona Beach) said.

While a four-day school week would be highly unusual, there is nothing usual about the budget problems school face trying to stay open.

Not every school district is likely to adopt the four-day week if it is approved.

Governor Charlie Crist called his agency heads together for a briefing on the stimulus package. Florida budget writers are on pins and needles waiting for congress to act on the package. Florida stands to gain somewhere between 10 point 1 billion and 13.3 billion. The differences are currently being negotiated. The governor is hoping the package will help avoid tax increases.

“It’s an exciting time and to get this kind of help that we hope actually comes to fruition from our friends at the federal level is enormously appreciated,” Crist said.

Because Florida schools are now being funded below the 2006 level, the state may not qualify for 3 billion in the stimulus package. So far efforts to amend the package to make sure Florida gets the money have been unsuccessful.

Backstage at the town hall meeting in Ft. Myers yesterday, Governor Charlie Crist spoke to President Obama about supporting a national Catastrophic fund to cover hurricane risks. Crist says the response was favorable.

“I took the occasion, as we met privately, to advocate for it,” Crist said. “And he campaigned for it favorably during the course of his campaign. And fortuitously, Rep. Ron Klein was there as well, so we brought him into the conversation, as well as some other members of Congress to advocate on Florida’s behalf in that regard for insurance purposes. So that worked out pretty well.”

Obama championed a national cat fund during his campaign.