BRADENTON, Fla. – In Florida's capital, the GOP-dominated Legislature has signaled it is out of lockstep with the Republican governor's policies on economic development, borrowing, tax cuts, and state spending.
The divergence in policies emerged Tuesday as lawmakers began their annual session in Tallahassee.
Gov. Rick Scott urged lawmakers in Tuesday's State of the State address not to alter two agencies he chairs that are charged with luring businesses to Florida and promoting tourism.
Legislation has been filed to abolish Enterprise Florida, a public-private economic development agency where operational funding was supposed to be shared with the private sector. Some lawmakers consider it "corporate welfare" because taxpayers pick up most of the tab.
A pending bill to eliminate programs and strengthen oversight at Visit Florida was spurred after legal action against the state's tourism agency led to the public disclosure that it paid Miami rapper Pitbull $1 million to promote the state.
The agencies made mistakes, but they've also had "many successes over the years," Scott said.
"I do not fault anyone for pointing out those mistakes. Any time we can eliminate government waste we should do it," Scott said to a joint session of the Legislature, kicking off their 60-day session.
Changes already have been made at both agencies to improve efficiency and transparency, he said, but instead of abolishing Enterprise Florida and reengineering Visit Florida lawmakers should correct any other problems.
"Let's remember, we are talking about people's jobs and their ability to provide for their family," Scott said. "We have worked so hard to grow jobs and together, we have been able to implement policies that have turned our economy around for our future generations."
Scott also said that his proposed budget calls for spending nearly $4 billion in cash on several environmental projects, although his speech did not address a $1 billion bond initiative to build reservoirs.
Senate President Joe Negron, R-Stuart, is backing the bond program in Senate Bill 10 to finance the purchase of land and construction of a reservoir to store polluted discharges from Lake Okeechobee.
The bonds, if approved, would be backed by taxes assessed on real estate sales.
In opening the senate's session Tuesday, Negron said the Lake Okeechobee discharges that send harmful, polluting algae blooms through the state and to the southeast and southwest coasts should be stopped.
Negron also reminded lawmakers that bonding is authorized by Amendment 1, an initiative approved by 75% of voters in November 2014 that sets aside 33% of the tax revenue collected on real estate sales for environmental projects.
"I think the Legislature owes it to the millions of Floridians who voted for that amendment to fully implement Amendment 1 in the way that the voters intended," he said.
Scott is asking lawmakers for approval to issue $369 million of bonds for transportation programs in 2018, which he has said offer the best return on the dollar for the use of debt.
While he has not publicly rejected the borrowing program, Scott has said that he will work with Negron to "put our money where I think it works best."
Scott has also proposed a record $83.5 billion state budget for 2018, which he says includes reducing the tax burden of businesses, residents and veterans by a total of $618 million.
Some $454 million of the tax cut would come from permanently reducing the state sales tax on commercial rentals by 25%.
But lawmakers have other ideas, according to House Speaker Richard Corcoran, R-Land O'Lakes.
"There are some who are suggesting that we pass the largest budget in state history. We will not," Corcoran said in response to Scott's speech. "Instead of spending more money, we will fight to eliminate waste from the budget."
Corcoran, who criticized unchecked spending at the state's business and tourism agencies, pointed out that it was a lawsuit filed by the House that eventually spurred Pitbull to publicly release his contract with Visit Florida.
A recent lawsuit filed by Corcoran contended that Florida Lottery Secretary Tom Delacenserie overstepped his authority when he signed a 15-year contract for lottery terminals and vending machines with IGT Global Solutions in October.
The suit claimed that the contract exceeded appropriations approved by the Legislature.
Circuit Judge Karen Gievers on Tuesday agreed, and voided the multi-year lottery contract saying that it violated Florida statutes governing procurements by state agencies.
"Today's decision is a victory for the taxpayer and the rule of law," Corcoran said in a joint statement with Rules Chairman Jose Oliva, R-Miami, and Judiciary Chairman Chris Sprowls, R-Palm Harbor. "It reinforces the idea that respecting the separation of powers is not an arcane idea or an out-of-date philosophy."
The ruling is a defeat for the governor, who signs off on the lottery's budget before it goes to lawmakers for approval in the budgeting process.
"The Florida Lottery continues to make record contributions to our public schools and today's ruling jeopardizes billions of dollars for Florida students," Scott's office said in a statement. "I strongly disagree with today's decision and we will appeal."
Lottery revenues also secure $1.9 billion of bonds issued by Florida to fund education programs.
In another disagreement with Scott, Corcoran also said Tuesday that the House will not agree to the governor's education budget, which he called a "massive property tax increase" because it relies on millions culled from taxes derived out of rising property values instead of additional state funding.
In this year's session of the Legislature, conflicts are also emerging between lawmakers and local governments that see two bills as a state power grab that could impact their budget revenues.
House Bill 17 would reserve to the state the authority to adopt a new requirement - including any regulation, license, permit or fee - on any business, profession or occupation.
Any existing local business regulation not allowed by state law would be automatically repealed on Jan. 1, 2020.
State Rep. Randy Fine, R-Brevard County, who sponsored HB 17, told the South Florida Sun-Sentinel that if the bill passes businesses would no longer deal with a "patchwork of regulations."
"The bill will allow businesses to grow, jobs to be created," he told the publication.
SB 1158, filed by Sen. Kathleen Passidomo, R-Naples, would preempt any local regulation of commerce, trade, and labor unless expressly authorized by special or general state law.
The Florida League of Cities opposes both HB 17 and SB 1158 because they eliminate municipal home rule powers.
"Any effort to repeal local control of businesses will leave local communities without effective tools to address the health, safety, welfare and property rights concerns of their residents and businesses in a manner best suited to their needs," the league said in a legislative brief posted on its website.
The Florida Association of Counties, which has said it opposes HB 17, contends that the bill would "effectively void any requirements of permits or contracts that are not explicitly authorized under Florida Statutes, opening up permits and agreements to challenges by anyone in the community, including competitors."
The legislative session runs through May 5.
