SLASHING THE BUDGET, SHIFTING THE BURDEN AND HOW AGRICULTURE COULD FARE

By Barbara Wunder, FFVA communications manager, with valuable assistance from FFVA's Director of Governmental Affairs Butch Calhoun

As usual, Florida’s lawmakers are working hard to pass bills of interest to their constituents before the end of the two-month session. The difference this year is that they’re doing it on a shoestring.

The budget for the next year, which begins July 1, will be about $4 billion to $5 billion less than this year's spending plan due to sagging tax collections. State economists say a slumping economy and real-estate market are responsible for the shortfall in sales tax and other state revenue. The Senate approved a $66 billion budget April 9, and the House hammered out its $65 billion budget the next day. The two versions must be reconciled by May 2, when the session ends.

SALES TAX TO FUND SCHOOLS IN PLACE OF PROPERTY TAXES?

The Senate approved a $66 billion budget April 9.

While trying to balance the current bleeding state budget and starting work on the even leaner budget for the next fiscal year, lawmakers are also dealing with a panel that meets once every 20 years that wants to craft a constitutional amendment calling for a reduction of property taxes. The Taxation and Budget Reform Commission is working to put the amendment on the November ballot. It would eliminate most of the school portion of property-tax bills. The problem is figuring out how to pay for it. Plans are being considered that would increase the state’s sales tax and enact hundreds of possible budget-cutting measures including eliminating sales tax exemptions that allow Florida farms, groves and ranches to stay in business. The commission will need to vote on the proposed amendment again before session’s end to make it final.

“These sales tax exemptions are crucial to the survival of our industry because they help keep Florida growers on a more level playing field with our competitors in other states,” said Butch Calhoun, director of FFVA’s Governmental Affairs Division.

Former Senate President John McKay, chief sponsor of the proposed amendment, is in favor of slashing those sales tax exemptions. In fact, he’s spent much of his 12-year legislative career in pursuit of that goal in the name of “creating a fair tax system.”

IMMIGRATION LAWS STILL UP FOR DISCUSSION

FFVA's Butch Calhoun catches up with Senator Mike Haridopolos in a stairwell at the Capitol.

Among lawmakers’ concerns going into this session was the issue of illegal immigration. But with the focus on budget cuts, several bills to enforce immigration law have lost some of their momentum.

One measure, which would have denied the agricultural land classification and assessment for 2-20 years for employers who knowingly hired undocumented workers, was removed from consideration because a matching House bill was never introduced.

Another bill, still in the works, would require public employees to verify immigration status involved in law enforcement action, allow state officials to enforce federal immigration laws, and impose state penalties for transporting or harboring illegal aliens. That bill has been languishing in the Committee on State Affairs since November 2007.

None of these measures are likely to pass because time is running out.

CLARIFICATION POSSIBLE FOR PRIVATE PROPERTY RIGHTS LAW

Lawmakers are moving forward on an effort to provide strength and clarity to the Bert J. Harris, Jr., Private Property Rights Protection Act. This law provides in part that when a governmental entity has inordinately burdened an existing use of real property or a vested right to a specific use of real property, the property owner is entitled to relief that may include compensation for the actual loss to the fair market value of the property caused by the government’s action.

The proposed legislation,approved by the House Safety & Security Council on April 9, clarifies that adoption of a regulation does not constitute applying the regulation to a property and it also clarifies that sovereign immunity does not apply to Harris Act claims.

FEES DUE TO FDACS COULD RISE

The Florida Department of Agriculture and Consumer Services could charge higher fees for things like pesticide registrations, fertilizer inspections and commercial feed registration under a proposed bill that originally intended only to review and/or revise the laws under which the department operated.

Amended March 19 to include the fee increases, this session’s Senate Bill 1702 passed the Senate on April 9 but was rejected by the House on April 10. These fee increases now become a conference issue in the budget negotiations.

CHANGES AFLOAT FOR THE SOUTHERN WATER USE CAUTION AREA

The West-Central Florida Water Restoration Action Plan, which has now gone through the committee process, would allow the Southwest Florida Water Management District to embark on its largest project to date. The 17-year project would endeavor to raise water levels, clean rivers and build reservoirs in the Southern Water Use Caution Area, a multi-county region of Southwest Florida where water resources are or will become critical in the next 20 years.

Members of the Florida House of Representatives discuss pending legislation April 9.

The project would include plans to help producers build reservoirs and offer other assistance to encourage them to use alternatives to groundwater.

The district is hoping the state will be able to set aside money that Gov. Charlie Crist had promised earlier as part of the project’s funding. Other sources of funding would come from the federal government and various local partners.

AND FINALLY, IFAS

After statements attributed to University of Florida President Bernard Machen alluded to a less-than-rosy funding picture for the school’s Institute of Food and Agricultural Sciences (IFAS), the watch has begun for potential cuts in research and extension spending.

Given all of the controversy over budget cuts, the Education Appropriations Committees in both the House and Senate amended their proposed budget cuts with proviso language stating that each state university’s board of trustees had the flexibility to determine those cuts that needed to be made. The possibility exists that the proviso language may give the UF Board of Trustees the flexibility to reduce IFAS' FY 2008/2009 budget internally by more than $13.75 million on top of any legislative cuts.

FFVA has been working with university officials to stress the need for continued funding for IFAS’ efforts, saying the industry relies on IFAS research and extension to stay competitive, expand farming operations, and thrive in a global marketplace.

LEGISLATIVE UPDATES AVAILABLE TO FFVA MEMBERS

The status of these and other bills of interest are updated every Friday by FFVA’s Governmental Affairs Division in its Capitol Rap bulletin sent to producer members via email and regular mail during the legislative session and when other important legislative matters develop. The bulletin is also posted each week at ffva.com (password required).

If you are a member of Florida’s agricultural producer community and are interested in FFVA membership, please visit http://www.ffva.com/ffva_mem.asp for more information or call the Marketing & Membership Division at (321) 214-5200. If you’re already a producer member and need help accessing password-protected section of ffva.com, please contact FFVA at the above number.