When workers become more efficient, it's normally a good thing. But lately, it has acted as a powerful brake on job creation. And the question of whether the recent surge in productivity has run its course is the key to whether job growth is finally poised to take off.
One of the great surprises of the economic downturn that began 27 months ago is this: Businesses are producing only 3 percent fewer goods and services than they were at the end of 2007, yet Americans are working nearly 10 percent fewer hours because of a mix of layoffs and cutbacks in the workweek.
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/30/AR2010033004091.html?referrer=emailarticle
Wednesday, March 31, 2010
Monday, March 29, 2010
News From the 2010 Florida Legislature
Below is information regarding bills that have an impact on the businesses of most MAF Members
The fourth week of the 2010 Legislative Session was a busy one, with most committees in the House and Senate putting on the full court press to hear as many bills as possible before the Easter-Passover holidays that will occur during the upcoming fifth week.
Last Friday, March 26, the Senate Judiciary Committee held a workshop and heard 23 bills including Senator Baker’s Construction Lien and Bond bill (CS/CS/SB 1048). Under the skillful leadership of Chairman Joe Negron (R-Palm City), the committee accomplished its lengthy agenda in less than the time allotted. Not so with the General Government Policy Committee chaired by Representative Schenck (R-Spring Hill), who for the second year in a row, refused to hear the companion bill (HB 693 by Representative Plakon).
During this final week of committee meetings in the House, Chairman Schenck scheduled two meetings and ultimately heard 19 member bills out of the 180 plus bills sitting in his committee. After much hammering and beating on Representative Schenck, industry representatives was simply told that he dislikes this bill that is very consumer, subcontractor, and supplier friendly.
Some items in Baker's bill may be added as amedments to other bills that are progressing.
Besides Lien and Bond legislation, there are other proposals to address lender responsibility when loans go into default and clarification of the direct purchase relationship between suppliers and tax exempt entities and will be working to find appropriate vehicles for these issues.
The Bigger Picture
Despite the grim budget realities legislators face this year, their work continues on the bigger statewide issues that affect us all. It was a tough week for the teacher’s unions who lost battles on merit pay, class size and school vouchers. Each of these measures moved a step or two closer to becoming reality.
CLASS SIZE – A proposed constitutional amendment (HJR 7039) to tweak the class size requirement in the constitution, freeze class size at its current level and allow some schools to go above the limit if the district-wide average is within current caps is now available for the House to take up on the floor. An identical measure (SJR 2) has already passed the Senate and is available for the House to take up.
MERIT PAY – This measure narrowly passed the Senate and would effectively end the long standing tradition of paying teachers based on years of service. Over the staunch opposition of Democrats and the state teachers’ union, the Senate approved SB 6, which would base teacher pay raises in part on the performance of their students, relying on standardized test results.
FLORIDA TAX CREDIT SCHOLARSHIP – SB 2126 and HB 1009 would expand the Florida Tax Credit Scholarship which gives businesses a tax credit in exchange for paying for a private tuition scholarship. The bill passed the full Senate this past week and is touted by Florida Tax Watch and others as increasing school choice and any costs of the tax credits being far offset by the reduction in public school students. The House Bill was heard this past week for the first time.
When the Legislature returns on Wednesday and Thursday of week five, the focus will be on THE BUDGET. With few exceptions, the House and Senate will meet in full Session to debate and pass their respective budgets and implementing bills.
The Senate budget is larger, totaling $68.6 billion. The House budget totals $67.2 billion. The difference is the Senate’s inclusion of $880 million in anticipated but not yet approved federal Medicaid funds and $435 million from the Seminole Gaming Compact which is yet uncertain. For construction, the House budget would deal another blow, sweeping $428 million from the State Transportation Trust Fund to shore up other areas of the budget. The Senate budget does not include monies from the Transportation Trust Fund, and so this will be up for negotiation. Members of The Construction Coalition testified this past week against this raid on transportation funding.
More Detail on Specific Bills -HB 693 by Plakon (R-Longwood) and SB 1048 by Baker (R-Eustis). As mentioned above, CS/CS/SB 1048 by Senator Carey Baker passed the Senate Judiciary Committee on Friday, March 26. The Committee adopted a “strike all” amendment that encompasses agreements we have made with the Clerks of Court, Florida Land Title Association and the industry. Work is being done by various parties including the House and Senate sponsors on a plan for passage of this legislation, despite the efforts of Committee Chair Robert Schenck to stop it in its tracks.
The bill, as amended, includes a two-page statement of owners rights and responsibilities, revises warnings on all notices that deliver a consistent message to owners, requires clerks to serve notices of contest by certified mail, requires full project information on demands, allows the use of global express guaranteed for oversees mailing and single claims of lien on multiple units and more.
State-Wide Crane Safety (HB 375/SB 1174): These bills adopt state-wide crane safety regulations and preempts local ordinances. Since the Federal Circuit Court of Appeal affirmed the permanent injunction against Miami-Dade’s Crane Ordinance, ABC is hopeful that a statewide regulation of building cranes in accordance with OSHA standards will be passed. The house bill has passed its first committee. The senate bill has not been heard.
NOTICE OF NONPAYMENT REVISIONS: HB 755 by Holder (R-Sarasota) and SB 878 by Thrasher (R-Jacksonville). These priority bills for the Florida AGC Council have not moved. Similar to our lien law bill, HB 755 was never heard in its first committee (also Schenck’s committee). Senator Thrasher has been true to his word and has not requested the Senate bill to be heard again. Unless it surfaces as an amendment, this proposal is dead for this Session.
COST & BENEFIT ANALYSIS LEGISLATION: HB 121 by Poppell and SB 1178 by Haridopolos. These bills did not move over the past week but are in a good position for passage if the House and Senate give them priority as session moves forward, especially since the Senate sponsor is the incoming Senate President. The bills are almost identical and give the Speaker and Senate President the ability to request special sessions of the revenue estimating conference on specific legislation where the benefit side of the proposal will be given more consideration in the final analysis.
LIFE OF THE MINE LEGISLATION: HB 617 by Bembry (D-Madison) and SB 1338 by Dean (R-Inverness). Although the House Bill sits on calendar, the Senate has yet to hear this legislation which would allow 30-year “Life of the Mine” permits for the limestone industry.
PROMPT PAY. HB 1157 by Eisnaugle (R- Orlando) and SB 1056 by Baker (R-Eustis).
These bills did not move this past week but are in reasonable shape for passage this year. The House Bill has one Council stop, and the Senate Bill has two committees to go. It appears that most of the objections raised by local governments at the hearings on March 17 have now been resolved, and we would expect to see the bills agendaed when we return from Easter break. These bills are priority for ABC, UUCF and have the full support of The Construction Coalition. They strengthen areas of the Local Government Prompt Payment Act which local governments continue to abuse, particularly who is responsible to accept payment requests and date stamp them received since the payment clock starts ticking from that receipt date.
OTHER INDUSTRY BILLS THAT HAVE BEEN HEARD
Immigration Reform-
One bill that did make it out of Representative Schenck’s committee during week four is one that wasn’t “being pushed” by the sponsor. CS/HB 219 by Representative Sandy Adams (R-Oviedo) is similar to bills which she has filed for numerous years now and requires any contractor working on state projects to comply with a Federal Work Authorization Program (E-verify) and to assure that all their subcontractors do the same. The bill also requires E-verify to be used before someone is allowed to collect lottery monies. The only possible similar bills in the Senate have received a large number of references, including one by Senator Baker that was referred to seven committees. You tell me – why was valuable committee time spent on this issue?
Building Codes-
SB 648 by Senator Mike Bennett (R-Bradenton) and CS/CS/HB 663 by Representative Aubuchon (R-Cape Coral) are the building code bills for Construction Coalition members this year. They contain language on product evaluation, elevators, home inspectors, alternative plan review and inspection, carbon monoxide detectors, rule adoption by the Florida Building Commission and a host of other code issues. CS/CS/HB 663 was heard in its last council this past week and now goes to the House Calendar. SB 648 was on the agenda for Senator Bennett’s own Community Affairs Committee, but they did not get to it. It has a total of five committee references, with three more to go, but we never underestimate Senator Bennett or the lobbyists working on these bills.
If you have specific questions regarding any of these issues, please let us know. If you would like copies of the most current draft of a bill or amendment, they are available at http://www.leg.state.fl.us/.
The fourth week of the 2010 Legislative Session was a busy one, with most committees in the House and Senate putting on the full court press to hear as many bills as possible before the Easter-Passover holidays that will occur during the upcoming fifth week.
Last Friday, March 26, the Senate Judiciary Committee held a workshop and heard 23 bills including Senator Baker’s Construction Lien and Bond bill (CS/CS/SB 1048). Under the skillful leadership of Chairman Joe Negron (R-Palm City), the committee accomplished its lengthy agenda in less than the time allotted. Not so with the General Government Policy Committee chaired by Representative Schenck (R-Spring Hill), who for the second year in a row, refused to hear the companion bill (HB 693 by Representative Plakon).
During this final week of committee meetings in the House, Chairman Schenck scheduled two meetings and ultimately heard 19 member bills out of the 180 plus bills sitting in his committee. After much hammering and beating on Representative Schenck, industry representatives was simply told that he dislikes this bill that is very consumer, subcontractor, and supplier friendly.
Some items in Baker's bill may be added as amedments to other bills that are progressing.
Besides Lien and Bond legislation, there are other proposals to address lender responsibility when loans go into default and clarification of the direct purchase relationship between suppliers and tax exempt entities and will be working to find appropriate vehicles for these issues.
The Bigger Picture
Despite the grim budget realities legislators face this year, their work continues on the bigger statewide issues that affect us all. It was a tough week for the teacher’s unions who lost battles on merit pay, class size and school vouchers. Each of these measures moved a step or two closer to becoming reality.
CLASS SIZE – A proposed constitutional amendment (HJR 7039) to tweak the class size requirement in the constitution, freeze class size at its current level and allow some schools to go above the limit if the district-wide average is within current caps is now available for the House to take up on the floor. An identical measure (SJR 2) has already passed the Senate and is available for the House to take up.
MERIT PAY – This measure narrowly passed the Senate and would effectively end the long standing tradition of paying teachers based on years of service. Over the staunch opposition of Democrats and the state teachers’ union, the Senate approved SB 6, which would base teacher pay raises in part on the performance of their students, relying on standardized test results.
FLORIDA TAX CREDIT SCHOLARSHIP – SB 2126 and HB 1009 would expand the Florida Tax Credit Scholarship which gives businesses a tax credit in exchange for paying for a private tuition scholarship. The bill passed the full Senate this past week and is touted by Florida Tax Watch and others as increasing school choice and any costs of the tax credits being far offset by the reduction in public school students. The House Bill was heard this past week for the first time.
When the Legislature returns on Wednesday and Thursday of week five, the focus will be on THE BUDGET. With few exceptions, the House and Senate will meet in full Session to debate and pass their respective budgets and implementing bills.
The Senate budget is larger, totaling $68.6 billion. The House budget totals $67.2 billion. The difference is the Senate’s inclusion of $880 million in anticipated but not yet approved federal Medicaid funds and $435 million from the Seminole Gaming Compact which is yet uncertain. For construction, the House budget would deal another blow, sweeping $428 million from the State Transportation Trust Fund to shore up other areas of the budget. The Senate budget does not include monies from the Transportation Trust Fund, and so this will be up for negotiation. Members of The Construction Coalition testified this past week against this raid on transportation funding.
More Detail on Specific Bills -HB 693 by Plakon (R-Longwood) and SB 1048 by Baker (R-Eustis). As mentioned above, CS/CS/SB 1048 by Senator Carey Baker passed the Senate Judiciary Committee on Friday, March 26. The Committee adopted a “strike all” amendment that encompasses agreements we have made with the Clerks of Court, Florida Land Title Association and the industry. Work is being done by various parties including the House and Senate sponsors on a plan for passage of this legislation, despite the efforts of Committee Chair Robert Schenck to stop it in its tracks.
The bill, as amended, includes a two-page statement of owners rights and responsibilities, revises warnings on all notices that deliver a consistent message to owners, requires clerks to serve notices of contest by certified mail, requires full project information on demands, allows the use of global express guaranteed for oversees mailing and single claims of lien on multiple units and more.
State-Wide Crane Safety (HB 375/SB 1174): These bills adopt state-wide crane safety regulations and preempts local ordinances. Since the Federal Circuit Court of Appeal affirmed the permanent injunction against Miami-Dade’s Crane Ordinance, ABC is hopeful that a statewide regulation of building cranes in accordance with OSHA standards will be passed. The house bill has passed its first committee. The senate bill has not been heard.
NOTICE OF NONPAYMENT REVISIONS: HB 755 by Holder (R-Sarasota) and SB 878 by Thrasher (R-Jacksonville). These priority bills for the Florida AGC Council have not moved. Similar to our lien law bill, HB 755 was never heard in its first committee (also Schenck’s committee). Senator Thrasher has been true to his word and has not requested the Senate bill to be heard again. Unless it surfaces as an amendment, this proposal is dead for this Session.
COST & BENEFIT ANALYSIS LEGISLATION: HB 121 by Poppell and SB 1178 by Haridopolos. These bills did not move over the past week but are in a good position for passage if the House and Senate give them priority as session moves forward, especially since the Senate sponsor is the incoming Senate President. The bills are almost identical and give the Speaker and Senate President the ability to request special sessions of the revenue estimating conference on specific legislation where the benefit side of the proposal will be given more consideration in the final analysis.
LIFE OF THE MINE LEGISLATION: HB 617 by Bembry (D-Madison) and SB 1338 by Dean (R-Inverness). Although the House Bill sits on calendar, the Senate has yet to hear this legislation which would allow 30-year “Life of the Mine” permits for the limestone industry.
PROMPT PAY. HB 1157 by Eisnaugle (R- Orlando) and SB 1056 by Baker (R-Eustis).
These bills did not move this past week but are in reasonable shape for passage this year. The House Bill has one Council stop, and the Senate Bill has two committees to go. It appears that most of the objections raised by local governments at the hearings on March 17 have now been resolved, and we would expect to see the bills agendaed when we return from Easter break. These bills are priority for ABC, UUCF and have the full support of The Construction Coalition. They strengthen areas of the Local Government Prompt Payment Act which local governments continue to abuse, particularly who is responsible to accept payment requests and date stamp them received since the payment clock starts ticking from that receipt date.
OTHER INDUSTRY BILLS THAT HAVE BEEN HEARD
Immigration Reform-
One bill that did make it out of Representative Schenck’s committee during week four is one that wasn’t “being pushed” by the sponsor. CS/HB 219 by Representative Sandy Adams (R-Oviedo) is similar to bills which she has filed for numerous years now and requires any contractor working on state projects to comply with a Federal Work Authorization Program (E-verify) and to assure that all their subcontractors do the same. The bill also requires E-verify to be used before someone is allowed to collect lottery monies. The only possible similar bills in the Senate have received a large number of references, including one by Senator Baker that was referred to seven committees. You tell me – why was valuable committee time spent on this issue?
Building Codes-
SB 648 by Senator Mike Bennett (R-Bradenton) and CS/CS/HB 663 by Representative Aubuchon (R-Cape Coral) are the building code bills for Construction Coalition members this year. They contain language on product evaluation, elevators, home inspectors, alternative plan review and inspection, carbon monoxide detectors, rule adoption by the Florida Building Commission and a host of other code issues. CS/CS/HB 663 was heard in its last council this past week and now goes to the House Calendar. SB 648 was on the agenda for Senator Bennett’s own Community Affairs Committee, but they did not get to it. It has a total of five committee references, with three more to go, but we never underestimate Senator Bennett or the lobbyists working on these bills.
If you have specific questions regarding any of these issues, please let us know. If you would like copies of the most current draft of a bill or amendment, they are available at http://www.leg.state.fl.us/.
Tuesday, March 16, 2010
Business Credit Availability - Key to Economic Recovery
The conversation within the business community has started to shift and the pressure on the economy has started to shift with it. The question now is what it will take to get the economy growing enough to provide those jobs and get the consumer back into a spending mood.
Analysis: The primary issue as far as business is concerned has become the availability of credit.
Large corporations have not had to contend with this issue to the same degree as the small business person has. The big companies have been able to access the corporate bond market and the equity markets to some extent. But for the vast majority of small and medium size companies, these avenues for financing are not open to them. They rely on banks and the financing options provided by those who purchase their goods and service. By most accounts this money has become much harder to get due to the fact that banks and other lenders have entered a new phase of activity.
Lending has dropped by 7.4% in the last year, the steepest decline in loan activity for business registered since 1942. The amount of money that has been taken off the table is over $700 billion. This is more than twice the amount that the stimulus package has managed to put into the economy thus far. Even if the complete package had been pushed into the economy it would have only matched what the banks have taken out of the economy due to the new trend towards caution.
The key issue in all this is that the engine of employment in the US is small business. The estimates vary from one study to the next but the consensus view is that businesses that employ less than 100 people provided 45% of the new jobs since 1992. These are the very companies that are struggling to get access to credit now. The implication for the 8.3 million people looking for work is pretty apparent. If these companies can’t get money to expand they can’t meet new market demand and they can’t hire anybody. There are many reasons for the dearth of credit and it is true that as the economy improves the atmosphere for lending will improve, but not in the short term.
The first rationale for bank caution is that many are still licking their wounds from the collapse. These are the banks that became too exposed to the building boom or who were lending in communities that were the hardest hit by the recession. They have far too much in the way of non-performing loans and have to take steps to get their affairs in order. They are now risk averse and they have regulators breathing down their necks.
A second rationale is that banks are facing much stricter regulations in the future although today they don’t have a clue what these will amount to. In this atmosphere the banks have to assume the worst and they look at every piece of legislation and every new regulation as another requirement. The mood in Congress is overtly hostile and the regulatory authorities are trying to make up for their errors in the past by becoming far tougher and more aggressive. Even healthy banks have adopted a much more cautious position as they do not know what will be coming down the pike in the weeks and months ahead.
The third rationale is part of the Catch-22 of bank activity. The banks have become cautious and risk averse and they do not want to add more exposure to their already weakened balance sheets. They have no desire to lend to companies whose survival is at all in question and this means they will be taking a very hard line position on a company’s prospects.
If the company needs money to expand and meet competitive and market pressures to grow and survive, the bank is worried. But given that the bank loan is what is needed to address these expansion issue the business is trapped. It needs the money to show progress but it has to show progress before it can get the money. The banks are not willing to get engaged with companies where there is any risk at all of default. That slams the door shut on millions of businesses.
– ARMADA Corporate Intelligence March 12, 2010
Analysis: The primary issue as far as business is concerned has become the availability of credit.
Large corporations have not had to contend with this issue to the same degree as the small business person has. The big companies have been able to access the corporate bond market and the equity markets to some extent. But for the vast majority of small and medium size companies, these avenues for financing are not open to them. They rely on banks and the financing options provided by those who purchase their goods and service. By most accounts this money has become much harder to get due to the fact that banks and other lenders have entered a new phase of activity.
Lending has dropped by 7.4% in the last year, the steepest decline in loan activity for business registered since 1942. The amount of money that has been taken off the table is over $700 billion. This is more than twice the amount that the stimulus package has managed to put into the economy thus far. Even if the complete package had been pushed into the economy it would have only matched what the banks have taken out of the economy due to the new trend towards caution.
The key issue in all this is that the engine of employment in the US is small business. The estimates vary from one study to the next but the consensus view is that businesses that employ less than 100 people provided 45% of the new jobs since 1992. These are the very companies that are struggling to get access to credit now. The implication for the 8.3 million people looking for work is pretty apparent. If these companies can’t get money to expand they can’t meet new market demand and they can’t hire anybody. There are many reasons for the dearth of credit and it is true that as the economy improves the atmosphere for lending will improve, but not in the short term.
The first rationale for bank caution is that many are still licking their wounds from the collapse. These are the banks that became too exposed to the building boom or who were lending in communities that were the hardest hit by the recession. They have far too much in the way of non-performing loans and have to take steps to get their affairs in order. They are now risk averse and they have regulators breathing down their necks.
A second rationale is that banks are facing much stricter regulations in the future although today they don’t have a clue what these will amount to. In this atmosphere the banks have to assume the worst and they look at every piece of legislation and every new regulation as another requirement. The mood in Congress is overtly hostile and the regulatory authorities are trying to make up for their errors in the past by becoming far tougher and more aggressive. Even healthy banks have adopted a much more cautious position as they do not know what will be coming down the pike in the weeks and months ahead.
The third rationale is part of the Catch-22 of bank activity. The banks have become cautious and risk averse and they do not want to add more exposure to their already weakened balance sheets. They have no desire to lend to companies whose survival is at all in question and this means they will be taking a very hard line position on a company’s prospects.
If the company needs money to expand and meet competitive and market pressures to grow and survive, the bank is worried. But given that the bank loan is what is needed to address these expansion issue the business is trapped. It needs the money to show progress but it has to show progress before it can get the money. The banks are not willing to get engaged with companies where there is any risk at all of default. That slams the door shut on millions of businesses.
– ARMADA Corporate Intelligence March 12, 2010
Monday, March 15, 2010
Florida Among States to Rush $1.5B Plan in Housing Funds
Five states hardest hit by the foreclosure crisis have been given only weeks to plan how to spend $1.5 billion in federal funding announced by the Obama administration last month.Guidelines issued under the U.S. Treasury Department's Fund for Hardest Hit Housing Markets on March 5 gave housing finance agencies in California, Arizona, Florida, Nevada and Michigan just six weeks to come up with plans on how to spend their share of the money.
The rush could be problematic for the states, especially because Treasury is seeking "innovative" measures to help families facing foreclosure. But some experts have been urging the administration to try the approach, believing it will be helpful and that it can be done quickly.
The guidelines give wide leeway to the state Housing Finance Agencies charged with doling out the money to design programs tailored to their region's circumstance. The money can be spent, for example, to help families who can't pay their mortgages because of job losses, unable to refinance because plunging home values have left them "underwater," or to give relief from second mortgage payments.
Florida is getting the second-largest share at $418 million.
The Florida Housing Finance Corporation is just starting to review the Treasury requirements, but has put a team together and is reviewing programs other agencies are using. They're looking at plans that have helped in other states and will likely cherry-pick the best.
Some critics have called the $1.5 billion both too little and too much — too little, because the housing crisis has hit so many homeowners that $1.5 billion is tiny compared to the need, and too much because it targets homeowners who really can't afford to be in their home anyway.
http://www.sun-sentinel.com/business/realestate/az--hardest-hit-funding-20100314,0,3824196.story
The rush could be problematic for the states, especially because Treasury is seeking "innovative" measures to help families facing foreclosure. But some experts have been urging the administration to try the approach, believing it will be helpful and that it can be done quickly.
The guidelines give wide leeway to the state Housing Finance Agencies charged with doling out the money to design programs tailored to their region's circumstance. The money can be spent, for example, to help families who can't pay their mortgages because of job losses, unable to refinance because plunging home values have left them "underwater," or to give relief from second mortgage payments.
Florida is getting the second-largest share at $418 million.
The Florida Housing Finance Corporation is just starting to review the Treasury requirements, but has put a team together and is reviewing programs other agencies are using. They're looking at plans that have helped in other states and will likely cherry-pick the best.
Some critics have called the $1.5 billion both too little and too much — too little, because the housing crisis has hit so many homeowners that $1.5 billion is tiny compared to the need, and too much because it targets homeowners who really can't afford to be in their home anyway.
http://www.sun-sentinel.com/business/realestate/az--hardest-hit-funding-20100314,0,3824196.story
Sunday, March 14, 2010
2009 Legislative Session is Underway
Even though the 2010 Florida Legislative Session got off to a quick start when the legislators passed a measure to delay an unemployment compensation tax increase that could have crippled an economy trying to rise out of recession, some industry lobbyists seem to think there hasn’t been much interest in passing much of anything during the second week of session. Due to budget constraints so much time will be spent in April working on the Budget. Thus, bills that aren’t heard and passed out of some of their committee references by the end of March will have little chance of passage.
Speaking of the Budget, House Speaker Cretul last week issued a budget allocation plan. The Speaker listed "no new or increased fees or taxes" as the first of several principles he used to divvy up overall spending into 10 different budget categories. The allocation plan also includes $9 billion in state money for education. It appears significant cuts will be needed.
The House is also planning to keep $1 billion in reserves, compared to the $250 million that the Governor has recommended.
The amount of money that state lawmakers will have for road-building and other transportation projects is sinking a new forecast shows. State economists with the Office of Economic and Demographic Research released new estimates this week that conclude there will be $75.5 million less in the coming fiscal year in the state transportation trust fund than what was projected back in November. Furthermore, those figures show that the state will have close to $500 million less over the next five years.
The news could have big implications for the state’s five-year work plan for road building, which was already projected to decline by $1.6 billion between 2010 and 2015. Members of the Florida Transportation Commission warned on Monday that the state’s road-building fund was skirting dangerously close to a situation where there may not be enough money on hand to meet the state’s obligations. Currently, Florida has an average cash balance of only 1.5 percent of the total amount of projects it has pledged to build.
Here are some specific bills that are important to masonry contractors and suppliers alike:
CONSTRUCTION LIENS & BONDS: HB 693 by Plakon (R-Longwood) and SB 1048 by Baker (R-Eustis); SB 510 by Wise (R-Jacksonville) is a similar bill but does not contain the current provisions advocated by the ICPC.
SB 1048 passed out of the Senate Regulated Industries Committee the first week of Session, unanimously. It is now a Committee Substitute Bill incorporating numerous technical revisions. It was hoped Representative Robert Schenck, Chairman of the House Governmental Affairs Policy Committee, would agenda HB 693 for a hearing during the second week. Unfortunately, that did not happen.
The nuts and bolts of this good piece of proposed legislation creates a “General Statement of Owners Rights and Responsibilities Under Florida’s Construction Lien Law,” requires an owner to sign a receipt that they have received the information, and require the receipt to be filed with the building official when the permit is applied for. In addition, the bill implements measures that ensure construction bonds are recorded and placed on file with building officials, updates mailing provisions to include global express delivery, , resolves issues of single liens on multiple lots and units in a condo or other development, eliminates the automatic expiration of notices of commencement, eliminates two improper payment traps for owners, makes warnings consistent throughout the statute, requires demands to include sufficient information to identify the project, gives permit officials the ability to reject incomplete and illegible documents, and raises the exemption from notice requirements for small one-day projects.
NOTICE OF NONPAYMENT REVISIONS: HB 755 by Holder (R-Sarasota) and SB 878 by Thrasher (R-Jacksonville). These bills are a priority for the Florida AGC Council and would require a Notice of Nonpayment to be a sworn document accompanied by all documents evidencing the amount claimed including the claimant’s contract. The NACM-ICPC, Florida Surety Association, and others participated a week ago with AGC in a conference call to air the various objections and concerns with the bill. Subsequently, compromise language has been offered to AGC.
LIFE OF THE MINE LEGISLATION: HB 617 by Bembry (D-Madison) and SB 1338 by Dean (R-Inverness). Representative Bembry’s bill received its second hearing this past week in the House Natural Resources Appropriations Committee. The bill was amended again to remove a section of the bill relating to wetlands mitigation. The bill grants “Life of the Mine” permits to the limestone industry, but does allow local governments to impose additional restrictions and conditions. The Senate bill has not yet been heard.
The information above is based on the legislature’s activities through Tuesday March 9th.
AND DON’T FORGET AMENDMENT 4 (Hometown Democracy)
The defeat of Amendment 4 this November is the key to insuring that growth in Florida does not come to a dramatic halt. Although not a legislative issue, this issue could have the single most negative impact on Florida’s construction industry –– more than any other measure in our history. We need to keep it in the forefront of our minds as the November elections draw closer. Educate your friends, neighbors and employees. Donate if you or your company can to the campaign to fight Amendment 4 being spearheaded by Floridians for Smarter Growth, a coalition of Florida businesses, the Chamber of Commerce and many others. Visit the website at http://Florida2010.org. When considering local candidates, find out if they support or oppose Amendment 4.
We should learn from the experiment of St. Pete Beach where a local version of Amendment 4 passed in 2006. Putting all growth decisions in the hands of the voters has cost that town dearly in jobs, higher tax rates and endless litigation. Although they have since revoked their local ordinance, they are still trying recover from its devastating impact.
If you have specific questions regarding any of these issues, please let us know. If you would like copies of the most current draft of a bill or amendment, they are available at www.leg.state.fl.us. Always make sure to download the latest version of the bill, as committee substitutes are created after most committee amendments are adopted.
Wade
Speaking of the Budget, House Speaker Cretul last week issued a budget allocation plan. The Speaker listed "no new or increased fees or taxes" as the first of several principles he used to divvy up overall spending into 10 different budget categories. The allocation plan also includes $9 billion in state money for education. It appears significant cuts will be needed.
The House is also planning to keep $1 billion in reserves, compared to the $250 million that the Governor has recommended.
The amount of money that state lawmakers will have for road-building and other transportation projects is sinking a new forecast shows. State economists with the Office of Economic and Demographic Research released new estimates this week that conclude there will be $75.5 million less in the coming fiscal year in the state transportation trust fund than what was projected back in November. Furthermore, those figures show that the state will have close to $500 million less over the next five years.
The news could have big implications for the state’s five-year work plan for road building, which was already projected to decline by $1.6 billion between 2010 and 2015. Members of the Florida Transportation Commission warned on Monday that the state’s road-building fund was skirting dangerously close to a situation where there may not be enough money on hand to meet the state’s obligations. Currently, Florida has an average cash balance of only 1.5 percent of the total amount of projects it has pledged to build.
Here are some specific bills that are important to masonry contractors and suppliers alike:
CONSTRUCTION LIENS & BONDS: HB 693 by Plakon (R-Longwood) and SB 1048 by Baker (R-Eustis); SB 510 by Wise (R-Jacksonville) is a similar bill but does not contain the current provisions advocated by the ICPC.
SB 1048 passed out of the Senate Regulated Industries Committee the first week of Session, unanimously. It is now a Committee Substitute Bill incorporating numerous technical revisions. It was hoped Representative Robert Schenck, Chairman of the House Governmental Affairs Policy Committee, would agenda HB 693 for a hearing during the second week. Unfortunately, that did not happen.
The nuts and bolts of this good piece of proposed legislation creates a “General Statement of Owners Rights and Responsibilities Under Florida’s Construction Lien Law,” requires an owner to sign a receipt that they have received the information, and require the receipt to be filed with the building official when the permit is applied for. In addition, the bill implements measures that ensure construction bonds are recorded and placed on file with building officials, updates mailing provisions to include global express delivery, , resolves issues of single liens on multiple lots and units in a condo or other development, eliminates the automatic expiration of notices of commencement, eliminates two improper payment traps for owners, makes warnings consistent throughout the statute, requires demands to include sufficient information to identify the project, gives permit officials the ability to reject incomplete and illegible documents, and raises the exemption from notice requirements for small one-day projects.
NOTICE OF NONPAYMENT REVISIONS: HB 755 by Holder (R-Sarasota) and SB 878 by Thrasher (R-Jacksonville). These bills are a priority for the Florida AGC Council and would require a Notice of Nonpayment to be a sworn document accompanied by all documents evidencing the amount claimed including the claimant’s contract. The NACM-ICPC, Florida Surety Association, and others participated a week ago with AGC in a conference call to air the various objections and concerns with the bill. Subsequently, compromise language has been offered to AGC.
LIFE OF THE MINE LEGISLATION: HB 617 by Bembry (D-Madison) and SB 1338 by Dean (R-Inverness). Representative Bembry’s bill received its second hearing this past week in the House Natural Resources Appropriations Committee. The bill was amended again to remove a section of the bill relating to wetlands mitigation. The bill grants “Life of the Mine” permits to the limestone industry, but does allow local governments to impose additional restrictions and conditions. The Senate bill has not yet been heard.
The information above is based on the legislature’s activities through Tuesday March 9th.
AND DON’T FORGET AMENDMENT 4 (Hometown Democracy)
The defeat of Amendment 4 this November is the key to insuring that growth in Florida does not come to a dramatic halt. Although not a legislative issue, this issue could have the single most negative impact on Florida’s construction industry –– more than any other measure in our history. We need to keep it in the forefront of our minds as the November elections draw closer. Educate your friends, neighbors and employees. Donate if you or your company can to the campaign to fight Amendment 4 being spearheaded by Floridians for Smarter Growth, a coalition of Florida businesses, the Chamber of Commerce and many others. Visit the website at http://Florida2010.org. When considering local candidates, find out if they support or oppose Amendment 4.
We should learn from the experiment of St. Pete Beach where a local version of Amendment 4 passed in 2006. Putting all growth decisions in the hands of the voters has cost that town dearly in jobs, higher tax rates and endless litigation. Although they have since revoked their local ordinance, they are still trying recover from its devastating impact.
If you have specific questions regarding any of these issues, please let us know. If you would like copies of the most current draft of a bill or amendment, they are available at www.leg.state.fl.us. Always make sure to download the latest version of the bill, as committee substitutes are created after most committee amendments are adopted.
Wade
Sunday, March 7, 2010
Recommendations Could Save Florida Taxpayers $3.2 Billion
A group of current and former government officials, business leaders and policy analysts recently made cost-savings recommendations to save Florida taxpayers up to $3.2 billion. That happens to be the amount House Speaker Larry Cretul, R-Ocala, cited as the upper end of a projected revenue shortfall this year, between expected state tax and fee collections and the cost of covering needed state services. But the task force assembled by Florida Tax Watch, an independent policy analysis organization that assesses state programs, was not related to the start of legislative budgeting in the new 2010 session.
A 31-member task force worked nine months to produce the 88 recommendations, which included collecting sales tax on Internet purchases, reducing employer contributions to the Florida Retirement System and increasing the "vesting" period for employees from six years to 10, implementing four-day work schedules in most agencies, reducing the retirement credits for managers and special-risk law enforcement employees, increases in employee parking fees and a moratorium on office-supply purchases.
The bigger recommendations were a $200 million plan to increase use of state term contracts for economies of scale, saving $50 million to $125 million by requiring competitive bidding on more goods and services, and $300 million saved by privatizing some non-instructional services in schools.
It was estimated that $80 million could be saved by eliminating "fourth quarter dumping," a reputed practice by agencies spending surplus money in May and June so they won't lose it in the new fiscal year.
http://www.tallahassee.com/article/20100304/CAPITOLNEWS/100304016/-1/NLETTER07?source=nletter-news
A 31-member task force worked nine months to produce the 88 recommendations, which included collecting sales tax on Internet purchases, reducing employer contributions to the Florida Retirement System and increasing the "vesting" period for employees from six years to 10, implementing four-day work schedules in most agencies, reducing the retirement credits for managers and special-risk law enforcement employees, increases in employee parking fees and a moratorium on office-supply purchases.
The bigger recommendations were a $200 million plan to increase use of state term contracts for economies of scale, saving $50 million to $125 million by requiring competitive bidding on more goods and services, and $300 million saved by privatizing some non-instructional services in schools.
It was estimated that $80 million could be saved by eliminating "fourth quarter dumping," a reputed practice by agencies spending surplus money in May and June so they won't lose it in the new fiscal year.
http://www.tallahassee.com/article/20100304/CAPITOLNEWS/100304016/-1/NLETTER07?source=nletter-news
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