Florida Government and Politics Weekly Update

Legislature: State Legislators Convene This Week to Select Leaders
On Monday, November 17, 2008, and Tuesday, November 18, 2008, state legislators will meet in party caucuses and an Organization Session to select leaders and adopt rules for the 2008 – 2010 biennium. In the Senate, Sen. Jeff Atwater (R-North Palm Beach) is expected to be elected Senate President and Sen. Alfred “Al” Lawson, Jr. (D-Tallahassee) is expected to be elected Democratic (Minority) Leader. On November 13, 2008, Sen. Atwater announced the appointment of two key lieutenants: Sen. Mike Fasano (R-New Port Richey) will serve as President Pro Tempore, and Sen. J. Alex Villalobos (R-Miami), will chair the Rules Committee.

In the House of Representatives, Rep. Ray Sansom (R-Fort Walton Beach) is expected to be elected Speaker and Rep. Franklin Sands (D-Plantation) is expected to be elected Democratic (Minority) Leader. Rep. Sansom has not made any announcements regarding his leadership team.

In other legislative news, Rep. Debbie Boyd (D-High Springs), who led challenger Elizabeth Porter (R-Lake City) by 176 votes after a machine recount in her District 11 reelection bid, avoided a hand recount when Ms. Porter conceded on November 13, 2008.

State Budget: Special Session on Budget Shortfalls Remains Possible
State Chief Financial Officer (CFO) Alex Sink continued her efforts in support of a special legislative session to address state budget shortfalls. On Wednesday, November 12, 2008, CFO Sink raised concerns that continued borrowing from the Lawton Chiles Endowment, a trust fund established to invest tobacco settlement proceeds, could force the state to liquidate fixed income and equity investments at a loss. She also indicated that at the next Consensus Revenue Estimating Conference, legislative and executive branch economists could add another $500 million to their estimate of the current budget deficit. The next meeting of the conference is scheduled for November 21, 2008.

Speaker-designate Sansom has thus far taken the position that shortfalls in the 2008 – 2009 budget can be addressed during the regular legislative session in March 2009. However, in a November 12, 2008 press conference, he refused to rule out a special session, stating that the need for a special session would depend on the outcome of the upcoming Consensus Revenue Estimating Conference.

Environment: Revised United States Sugar Corporation Buyout Announced
After five months of negotiation, state officials and United States Sugar Corporation (U.S. Sugar) announced the details of the state’s purchase of 181,000 acres from the company in an effort to restore the Everglades. In June 2008, Governor Charlie Crist announced a plan to buy the entire company, including approximately 187,000 acres, for $1.75 billion. Under the revised deal, the state will spend $1.34 billion for 181,000 acres, and the company will remain in business for at least seven years, and would keep its mill, citrus processing plant, railroads, and other manufacturing facilities. U.S. Sugar will be able to lease land back from the state and continue farming operations for at least the next seven crop cycles. The South Florida Water Management District will be able to take over land for hydrology projects on a phased-in basis and will eventually take over the land needed to reconnect Lake Okeechobee to the Everglades.

Insurance: More Take-Outs From Citizens Property Insurance Corporation Approved
On November 13, 2008, the Florida Office of Insurance Regulation announced that it had approved plans of six insurers to take over up to 110,000 policies currently written by the state-controlled Citizens Property Insurance Corporation (Citizens). The new take-outs are in addition to approximately 300,000 Citizens’ policies that have been taken over by private-sector insurers during 2008. Since the beginning of the take-out process, more than 1.1 million policies have been removed from Citizens. As of October 31, 2008, Citizens had 1.1 million policies in force, covering more than $400 billion worth of residential properties. For calendar year 2007, Citizens was the ninth largest homeowner’s insurance company in the United States, measured by premiums written.

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