BRADENTON, Fla. — Florida’s AAA implied general obligation rating is “not affected at this time” because of the oil spill crisis in the Gulf of Mexico, Standard & Poor’s said in a special bulletin released yesterday.
While noting that the oil has not reached Florida’s shores, Standard & Poor’s said the state does have the longest coastline of all the affected states and the most significant reliance on tourism, which has been under pressure because of the housing market downturn, the financial and credit market crises, and the national recession.
“Although revenues have shown some indication of stabilizing, we believe it is still too early to assess whether the state’s economy is beginning to do so,” the rating agency said. “To the extent that the oil spill reaches Florida, it could further delay the state’s economic recovery.”
State officials are assessing the effect of the oil spill spewing from a well in deep water off the coast of Louisiana on Florida’s revenues but have indicated it is still too early to determine what the long-term effect might be, analysts said, while crediting the state for its responsiveness to the economic downturn and maintaining strong reserves.
Standard & Poor’s also said that to date, Florida has received $25 million from BP — which owns the drilling platform that exploded and sank last month — to assist with initial recovery efforts and an additional $25 million for tourism promotion.
The state has been working for weeks on advertising to counter negative and false perceptions about the spill, and had requested $35 million from BP for advertising. The oil company on May 17 said it would give the state $25 million.
But the advertising funds had not been made available as of midday yesterday, which angered officials at a meeting of the state’s elected Cabinet.
“The bottom has dropped out of tourism,” said state Sen. Don Gaetz, R-Destin, who represents most of northwest Florida where the anticipated extensive damage from the oil spill has not yet occurred. “It is now day 35 and I regret to say, thus far, the state of Florida has not done enough … to support the northwest Florida tourism industry.”
Gaetz told the Cabinet that the loss of income in tourism and fisheries is “extraordinary” because of the improper perception that Florida’s beaches are covered in oil and fisheries are closed.
In a briefing about the oil spill, Florida Department of Environmental Protection Secretary Michael Sole said Mother Nature has cooperated to keep the oil plume well off Florida’s coast and regular testing of waters and seafood has detected no oil and none of the dispersant being used to break up the oil.
Sole also said no oil has been definitively found in the loop current that runs from the Gulf around South Florida and up the East Coast.
Meanwhile, frustration flared as speakers criticized BP for not handing over ad funds quickly and for the state not using its own funds to place ads in advance of the upcoming long holiday weekend seen as critical to northwest Florida’s tourism-based economy.
“We can’t spend money we don’t have,” said Gov. Charlie Crist.
Crist hoped BP would provide the funds by today. As soon as the state receives the money, “it’ll be out the door, I’m sure,” he said.
