Economy: Florida Unemployment Rises to 12.2 Percent, Breaking the Modern-Era Record
In February 2010, Florida’s seasonally adjusted unemployment rate rose to 12.2 percent, according to a report released by the Agency for Workforce Innovation on March 26, 2010. The February rate was two-tenths of percentage point higher than the revised January 2010 rate of 12.0 percent, and 3.0 percentage points higher than the February 2009 rate.
Both the February rate and the revised January rate exceed the highest unemployment rate recorded since state records were first compiled in 1970, including the 1973 – 1975 recession. The previous record was 11.9 percent, set in May 1975.
Florida’s unemployment rate is the sixth-highest in the nation, exceeded only by Michigan (14.1 percent), Nevada (13.2 percent), Rhode Island (12.7 percent), and California and South Carolina (both at 12.5 percent). The Florida unemployment rate is now 2.5 percentage points higher than the national rate of 9.7 percent.
The report from the Agency for Workforce Innovation also highlights one positive sign: The state gained a net 26,300 jobs in February, marking the first time since November 2007 that Florida experienced month-over-month job growth.
The counties with the highest unemployment rates in February were Flagler County (17.0 percent), Hernando County (15.6 percent), Marion County (15.4 percent), Hardee and St. Lucie counties (both at 14.9 percent), and Citrus County (14.5 percent). The counties with the lowest unemployment rates were Liberty County (7.5 percent), Monroe County (8.0 percent), Leon County (8.6 percent), and Alachua County (8.8 percent).
Politics: Attorney General McCollum and Former Speaker Rubio Maintain Their Leads in Rasmussen Polls
In automated telephone surveys conducted by Rasmussen Reports on March 18, 2010, Republican Attorney General Bill McCollum maintained his lead over Democratic Chief Financial Officer Alex Sink in their contest to succeed Governor Charlie Crist; former House Speaker Marco Rubio maintained his lead over Gov. Crist in the Republican primary race for U.S. Senate; and both Mr. Rubio and Gov. Crist maintained their leads over the presumptive Democratic nominee, U.S. Rep. Kendrick Meek (D- 17th Congressional District), in the general election contest for the Senate seat being vacated by the appointed Republican Senator George LeMieux.
In the race for governor, Attorney General McCollum leads CFO Sink by 47 percent to 36 percent. During the past six months, Attorney General McCollum’s performance in the Rasmussen polls has varied only slightly, ranging from 44 percent to 48 percent, and CFO Sink’s performance has been similarly stable, ranging from 35 percent to 39 percent. The latest poll also found public support for the efforts by Attorney General McCollum and 12 other state attorneys general to challenge the recently enacted national health care legislation. The states’ lawsuit was favored by 54 percent of respondents and opposed by 36 percent.
In the Republican primary for U.S. Senate, former Speaker Rubio now leads Gov. Crist by 56 percent to 34 percent. In a February 2010 Rasmussen poll, Mr. Rubio led by 54 percent to 36 percent. In separate matchups against Rep. Meek, both Republicans had strong leads. Gov. Crist led Rep. Meek by 45 percent to 34 percent, and Mr. Rubio led Rep. Meek by 48 percent to 34 percent.
Rasmussen Reports also polled on a hypothetical three-way race in which Gov. Crist would run as an independent. In that matchup, Mr. Rubio led with 45 percent, followed by Rep. Meek with 25 percent and Gov. Crist at 22 percent. In a debate with Mr. Rubio on Fox News on March 28, 2010, Gov. Crist disclaimed any interest in running for Senate as anything other than a Republican.
The general election portion of the survey reflects the responses of 1,000 likely voters and has a margin of error of 3.0 percentage points; the Republican primary questions reflect the responses of 494 likely voters with a margin of error of 4.5 percentage points.
State Budget: House and Senate Committees Finalize Competing 2010 –2011 Budget Proposals
On March 23, 2010, the main House budget-writing committee, the Full Appropriations Council, passed its final budget proposal for the 2010 – 2011 fiscal year. Two days later, the Senate Ways and Means Committee adopted its plan. The competing budget proposals will be debated and voted on by the full House and Senate on March 31 and April 1, 2010, setting the stage for the conference committee negotiations that will resolve the differences between the two chambers.
The Senate proposes to spend $68.6 billion, while the House proposes a $67.2 billion plan.
The Senate plan includes approximately $880 million in federal funding and $435 million in Seminole Indian gaming revenue; the House budget does not include these funds. The House, however, “sweeps” $717 million from various state trust funds, while the Senate would draw $295 million from trust funds.
The House would cut school funding by $30 per pupil, while the Senate raises per-pupil spending by $15.41 and assumes that all 67 counties will approve a 0.25 mill property tax increase.
Both chambers attempt to cut state payroll costs. The House would reduce salaries by three percent overall, but would allow each state agency flexibility in implementing the reduction. The Senate proposes to eliminate free health insurance for government employees, requiring existing employees to contribute 10 percent of their health insurance costs and requiring new employees to contribute 50 percent.
Education: Senate Passes Major Public School Changes
On March 24 and 25, 2010 the full Senate passed several measures described by Senate leadership as a comprehensive education reform package.
SJR 2 by Sen. Don Gaetz (R-Niceville) proposes to place before the voters an amendment to the Florida Constitution that would modify the class size limits that were approved by Florida voters in 2002. Under the proposed revision, class size limits would continue to apply, but compliance would be measured on the basis of school-wide averages rather than classroom-by-classroom counts. The measure passed the Senate by a vote of 26 – 12.
SB 4 by Sen. Nancy Detert (R-Venice) substantially revises high school curricula and graduation requirements. Under the bill, end-of-course examinations in geometry, algebra, biology, and chemistry would be required, and the FCAT examination would begin to be phased out. SB 4 passed by a vote of 36 – 1.
SB 6 by Sen. John Thrasher (R-St. Augustine) included the most controversial elements of the package. The bill ties teacher pay directly to student performance and eliminates tenure for public school teachers. It passed on a 21 – 17 vote, with four Republican senators voting against the bill.
Litigation: Series of Tort Bills Move Rapidly Through Legislature
After representatives of the trial bar and business interests reached agreement on a bill to allow a parent or guardian to sign a liability release on behalf of a child, the Senate moved rapidly on the liability release bill and two other litigation-related bills.
As passed by the Senate on March 25, SB 2440 by Sen. Mike Bennett (R-Bradenton), the waiver would apply to “inherent risks” and a specific notice to the parent or guardian would be required. The bill also provides methods of rebutting the presumption that the waiver is valid. The bill passed the Senate on a vote of 38 – 0. Proponents of a similar House bill, HB 285 by Rep. Mike Horner (R-Kissimmee), have indicated that they will support the Senate version.
After agreement on the liability waiver bill, Senate President Jeff Atwater (R-North Palm Beach) moved two other tort bills that had already passed the House directly to the Senate Floor, where they also passed.
HB 689 by Rep. Gary Aubuchon (R-Cape Coral), will make it easier for businesses to prevail in slip-and-fall cases. In cases where a person slips and falls on a “transitory foreign substance” in a business establishment, the injured person must prove that the establishment had actual or constructive knowledge of the dangerous condition and failed to correct it. Under prior case law, the business had to prove that it had taken precautions to avoid the condition. The bill passed the Senate on March 25 by a vote of 32 – 5 and will go to Gov. Charlie Crist for his signature.
On March 25, the Senate also passed HB 437 by Rep. Eric Eisnaugle (R-Orlando), which limits the circumstances under which the attorney general’s office may retain private attorneys on a contingency fee basis and caps their fees at $50 million. The bill, a top priority for Attorney General Bill McCollum, passed by a vote of 27 – 11 and will go to the governor.
Public Policy News Alert is part of our ongoing commitment to providing up-to-the-minute information about pressing concerns or industry issues affecting our clients and our colleagues. If you have any questions about this alert or would like to discuss these topics further, please contact your Foley attorney or any of the following individuals:
Marnie George
Tallahassee, Florida
850.513.3398
[email protected]
Michael P. Harrell
Tallahassee, Florida
850.513.3373
[email protected]
Robert H. Hosay
Tallahassee, Florida
850.513.3382
[email protected]
Jonathan P. Kilman
Orlando, Florida
407.244.3256
[email protected]
Thomas J. Maida
Tallahassee, Florida
850.513.3377
[email protected]
Leonard E. Schulte
Tallahassee, Florida
850.513.3380
[email protected]
Marnie George of The George Group assists Foley on a variety of government and public policy matters as a consultant.