Don’t get rid of Enterprise Florida, fix it.
If politics is a zero sum game, a Florida House committee’s vote this week to slash funding for the state’s tourism marketing agency and eliminate the state’s economic development agency was a victory for Speaker Richard Corcoran and a defeat for Gov. Rick Scott.
But contrary to the governor’s complaints, the bitter battle between the two Republican leaders already has produced some positive results for everyone — and a model for more. And we’re not just talking about the resolve on all sides never to repeat fiascos like Visit Florida’s secret $1 million promotional contract with Miami rapper Pitbull.
On Tuesday, a House committee voted 18-12 to advance legislation that would slash funding for Visit Florida and abolish the economic development agency, Enterprise Florida. The original version of the bill would have eliminated Visit Florida, but it was amended — and much improved — in committee to cut the tourism marketing agency’s budget by more than $50 million and require it to operate under strict new standards for transparency and accountability.
The bill would return Visit Florida’s annual funding to $25 million, just a few million shy of where it was in 2009. This is not unreasonable in a state budget where money is short for other higher public priorities such as education, health care and public safety.
The House approach to Visit Florida of reducing state funding while increasing transparency and accountability also makes much more sense for Enterprise Florida than shutting down the state’s leading economic development agency. Enterprise Florida, a public-private agency created under former Democratic Gov. Lawton Chiles, has been caricatured by Corcoran and other critics as a candy man for corporations, doling out financial incentives in return for mere promises of jobs.
Enterprise Florida does provide incentives in select cases when competing with other states that also offer them to the most-coveted high-wage employers. Under pressure in recent years following reports in the Sentinel and other news outlets of unmet goals on jobs, it has tightened up its standards to withhold incentives until jobs materialize.
But Enterprise Florida does plenty of other things to create jobs in the state. It promotes Florida as a place for out-of-state employers to relocate. It serves as an information clearinghouse for businesses looking at multiple communities in the state. It partners with regional economic development agencies, and offers its expertise to local governments that can’t afford the staff and expertise to recruit jobs and investment. It assists companies in lining up the work-force talent and financing they need to grow. It helps smaller companies become exporters through grants, trade shows and trade missions.
Last year Scott asked legislators for $250 million for incentives for Enterprise Florida. Legislators, reeling from sticker shock, gave him nothing. This year, he has requested $85 million. That’s still too much in a tight budget.
But rather than give the governor another goose egg, here’s a smarter plan for legislators: Cut back Scott’s request, but use continued funding as leverage to impose the kind of accountability and transparency measures at Enterprise Florida that the House committee approved this week for Visit Florida. Mend Enterprise Florida, don’t end it.
The alternative — shutting down an agency dedicated to creating more high-wage jobs in low-wage Florida — would score political points for the House speaker, but would be a loss for the state’s economy.
Eliminating Florida’s economic development agency would hurt the state’s economy.
A House plan for stricter oversight of Visit Florida also makes sense for Enterprise Florida.