As lawmakers begin in earnest to craft the states budget, they are considering how much to put in the spending plan for economic development incentives. The governor, who has based his job creation efforts on offering businesses a variety of cash incentives and tax breaks, has asked for $278 million, a steep increase over this years pot of $111 million.
In crafting our $70 billion-plus budget, legislators need to prioritize the many needs of Florida citizens. Where on this spectrum of needs and wants do incentives/subsidies for corporate citizens rank? Is this a legitimate use of taxpayer dollars? Are the politically influential getting special treatment? Is government picking the winners and losers? And most importantly, is the investment of our tax dollars producing the desired results?
Lets take a look at four such deals that have been in the news.
Vision Airlines Lots of fanfare, false promises and failure
One of Gov. Rick Scotts first big job announcements was the promise of 4,200 direct and indirect jobs by Vision Airlines, which wanted to bring a hub to Panama City in the Florida Panhandle.
At a high-profile 2011 press conference, Scott said, This is going to be fun. This is our chance. We are going to win.
Vision Airlines abandoned its flights along with its contractual obligations, leaving Okaloosa County stiffed with $150,000 in unpaid airline fees. The county sued and the state attorney charged Vision Airlines with grand theft.
Less than two years after that joyful press conference, Okaloosa County officials dont appear to be having fun and Florida taxpayers certainly did not win.
Digital Domain Friends in high places
A recently released Inspector General report unveiled an impressive cast of political players who were involved in circumventing the established process in awarding cash incentives to the CEO of Digital Domain. Those involved included a former governor, Senate president, House speaker and three representatives, some of whom have gone on to higher office.
Read more here:
Florida economic development gone awry