Lawmakers grapple with Irma recovery

TALLAHASSEE — Florida’s economy could take some time to rebound from Hurricane Irma, as job growth and state revenues are expected to slow down and debris-removal efforts continue to lag, business and government officials told lawmakers Monday.

“Tax revenue won’t keep up with storm expenses,” Florida Chamber of Commerce president and CEO Mark Wilson told a Senate panel. “We expect there will be short-term tax receipt losses while homeowners hold off on making additional purchases while they wait for home repairs.”

That wait stems from a shortage of contractors available to repair homes and businesses one month after Irma hit the state.

In addition, Wilson said, job growth was already projected to slow down before Irma. And Cissy Proctor, executive director of the Department of Economic Opportunity, said there were 27,000 unemployment claims filed as a result of the hurricane — on Monday, her office extended the deadline for disaster unemployment assistance applications to Oct. 31.

Although Florida’s economy was strong before the storm and expected to rebound, a slowdown, even if short-lived, will have an impact on the state budget. Economists have already told lawmakers a previously projected $52 million surplus — a small fraction of an $83 billion budget — was likely wiped out by Irma.

That, coupled with the $2.5 billion in losses to Florida’s agriculture industry, has some lawmakers considering raising the budget for tourism marketing to protect the state’s other important economic pillar.

“This may be a good lesson for us in terms of how much money is needed and how much more we need in those funds,” said Sen. Bill Montford, D-Tallahassee, chairman of the Senate Commerce and Tourism Committee. “The losses to the [agriculture] industry alone will have an almost a crippling effect on Florida. We can’t afford to have a crippling impact on tourism as well.”

The slow pace of debris removal was criticized as well. Some companies left Central Florida for more lucrative contracts in South Florida. Attorney General Pam Bondi issued subpoenas to three companies as part of an investigation into allegations of reneging on contracts.

Montford, though, wouldn’t say whether his committee would address that issue.

“That’s a two-way sword. Local governments also tell us to stay out of their business,” Montford said. “So we’ve got to be careful that we’re not accused of getting in there and telling them how to run their shop, but I understand their concerns.”

On top of Irma’s impact, lawmakers haven’t begun to consider how Hurricane Maria, which could send an exodus of people fleeing Puerto Rico to Florida, will affect the bottom line.

Some lawmakers are looking to take a cautious approach to the budget in light of the looming shortfall. House Speaker Richard Corcoran, R-Land O’Lakes, has said members can forget about local “pork” projects unless they have something to do with hurricane recovery efforts or strengthening infrastructure damaged by the storm.

Corcoran also set up a specific House panel on hurricane preparation and response to address issues related to Irma recovery, and he suggested looking into whether Florida should set up its own gas reserves to prevent fuel shortages that plagued parts of the state as the storm approached. That committee’s first meeting is Thursday.

The Senate, though, is moving ahead with bills to pay for beach restoration and water cleanup projects. Senate budget chief Jack Latvala, R-Clearwater, saw his bill to set aside $50 million for beach restoration pass unanimously through a committee Monday. Another bill putting $125 million toward springs restoration and waterway preservation, pushed by Sen. Rob Bradley, R-Fleming Island, also passed.

“We all understand the importance of beaches to Florida,” Latvala said. “Our beaches are very important tourism drivers.”

Despite the troublesome budget numbers and possible short-term economic slowdown, lawmakers praised the state’s preparation and response to Irma. The optimism stems mainly from a sense of relief the storm didn’t hit the state harder than it did.

“Because of the massive nature of the storm, it appears that we’re coming out pretty well,” Montford said.

STAFF FILE Attorney General Pam Bondi issued subpoenas to three companies as part of an investigation into allegations of reneging on contracts after reports that clean-uop crews left Central Florida for more lucrative work in South Florida.