State Farm Insurance withdrawing from Florida property market, Florida Trend

January 28, 2009

The state’s largest private insurer will drop 1.2 million policies over the next two years, likely pushing many into the already bloated state-run insurer of last resort, Citizens Property Insurance Corp. More than 800 State Farm agents can expect to see their income slashed by an average of 37%. State Farm Florida president Jim Thompson said the Florida operation has been losing $20 million a month.

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Fla.cuts, fed plan not in sunc, critics say, The Ledger (Lakeland)

January 24, 2009
By Lloyd Dunkelberger


TALLAHASSEE The federal government is preparing a historic economic recovery program that will pour billions of dollars into Florida to help revive the economy.

But at the same time, Florida lawmakers have cut more than $8 billion from state spending over the last two years, with more cuts likely when they meet in March to write a new state budget.

Some critics say the efforts are at cross-purposes, with the state cuts worsening Florida's recession.

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Florida at the ready for a Medicaid boost, Herald Tribune

January 23, 2009
By Lloyd Dunkelberger

TALLAHASSEE - The federal government is preparing a $4.3 billion boost that could help some of Florida's sickest and most vulnerable citizens while extending health care to the state's growing legions of the unemployed.

"This is a very significant shot in the arm for Florida," said U.S. Rep. Kathy Castor, a Tampa Democrat and member of the House Energy and Commerce Committee, which reviewed a portion of the $825 billion federal economic recovery package on Thursday.

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Financial considerations prompt Florida State Seminoles to agree to face South Florida Bulldogs, St. Pete Times

January 23, 2009
By Brian Landman

Florida State coach Bobby Bowden didn't sound particularly optimistic, or even particularly enthusiastic, about scheduling ever-improving USF as recently as last summer.

"You usually try to find somebody that you've got a chance to win (against) instead of getting your nose bloodied," he said in July.

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Florida loans take toll on SunTrust portfolio, South Florida Business Journal

January 22, 2009

SunTrust Banks has slashed its dividend 81 percent and frozen executive bonuses and pay raises for 4,000 employees as profit plunged 54.3 percent because of a deteriorating economy, according to the bank’s fourth quarter earnings announcement.

The Atlanta-based bank (NYSE: STI) had net income of $746.9 million and earnings of $2.13 a share. That’s down from net income of $1.6 billion and earnings of $4.55 a share in 2007.

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Real estate market confidence sinks, Orlando Business Journal

January 21, 2009

Persistently bad economic news has sunk confidence in the real estate industry to its lowest level since a statewide survey of economic experts began three years ago, according to a new University of Florida report.

The most recent quarterly survey of Florida real estate trends, completed last month, suggests the investment outlook for various types of properties has sunk to depths not seen for 30 years.

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Tourism officials brace for budget cuts, Destinlog

January 18, 2009
By Thomas J. Morgan

Reverberations from state budget cuts involving tourism are echoing all along the Emerald Coast.The $2.3 billion deficit elimination plan passed by the Legislature in special session but not yet signed by Gov. Charlie Crist includes a $9.9 million cut to Visit Florida, the state's public-private tourism agency.

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Florida CFO Sink discusses state's budget woes, Jacksonville Business Journal

January 15, 2009
By Rachel Witkowski

Improving Florida’s economy will largely depend on diversifying industries, providing more funding for education and attracting higher wage jobs, said Chief Financial Officer Alex Sink before a group at Jacksonville University’s Davis College of Business Thursday.

More state budget cuts are expected but there are tax changes that can be proposed by the state to mend the cuts, she said.

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Reports chronicle looming healthcare crisis across Florida, Jacksonville Business Journal

December 31, 2008

NORTHEAST FLORIDA – First was a failing grade for access to the state’s emergency rooms. Then came a forecast of doctor shortages. And the latest report on mass layoffs in health care is yet another sobering report on the state of health care in Florida.

The final month of 2008 left a lot to chew on for health care officials and state lawmakers — evidence of an erosion in the state’s health care system that isn’t expected to improve in 2009.

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Budget woes coming in months ahead, Tampa Bay Newspapers

December 30, 2008

PINELLAS COUNTY – Local and state officials continue to remain jittery about the economy and its impact on government services.

The state and nation are suffering their worst credit crunch since the 1980s and perhaps since the Great Depression. The current recession is having a domino effect in Pinellas and other counties as more government agencies are tightening their belts.

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Florida health care funding at risk from Legislature, Jacksonville Business Journal

December 26, 2008
By Kimberly Morrison

JACKSONVILLE — Health care officials are bracing for another battle with state lawmakers looking to balance a $2.3 billion deficit in a January special session.

Florida representatives are eyeing deep cuts to programs that support the state’s neediest — the young, old and poor — to pull a $66 billion state budget back to black.

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Budget Hole Has Tax Exemptions in Sites Again, Tampa Tribune

December 21, 2008
By David Royse

TALLAHASSEE - Businesses across Florida are carefully watching the Legislature with the deepening cash crisis facing state government leading to the most serious talk of eliminating some tax exemptions since former President John McKay took on the tax structure eight years ago.

Democrats and advocates for government programs that annually face a difficult time in the budget process have long suggested that Florida's hodge podge of exemptions to the sales tax are unfair and should be reviewed.

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A better way for Florida's budget, St. Pete Times

December 21, 2008

To hear the talk from Tallahassee, Florida need do nothing differently to weather the worst economic crisis since the Great Depression. Gov. Charlie Crist's suggestions for dealing with a $2.3-billion shortfall during next month's two-week special session are the same old ideas that are neither bold nor visionary. He proposes cutting state agency spending across the board, draining state savings accounts, borrowing money to build facilities in lieu of paying in cash and ratifying the controversial gambling pact with the Seminole Indian tribe. Such a short-term strategy digs an even deeper budget hole for next year. There is a better way, and it involves raising some additional revenue.

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Special session called to close state budget gap, Miami Herald

December 15, 2008
By Marc Caputo and Mary Ellen Klas

TALLAHASSEE -- Florida's legislative leaders announced Monday that they will convene an extraordinary lawmaking session Jan. 5 to close the state's ever-widening $2.3 billion budget hole.

The Republican leaders' joint announcement said legislators will focus on cutting the budget and shifting money from savings accounts and other funds. Tax and fee increases look like they're off the table.

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Florida No. 2 in foreclosure activity, Orlando Business Journal

December 11, 2008

November Foreclosure activity in Florida fell by nearly 10 percent, but it was still high enough to hold the No. 2 spot in the nation, according to a report released Dec. 11 by RealtyTrac.

Despite a decrease of 9.45 percent in foreclosure activity from October, it was 68 percent higher than what was recorded in November 2007.

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Florida A&M trustees warned to plan for tough times, Tallahassee Democrat

By Angeline J. Taylor
December 7, 2008

Florida A&M’s Chief Financial Officer Theresa Hardee offered two words of advice to trustees after summarizing the dismal financial picture facing the university — prioritize now.

Last week, Hardee gave FAMU trustees a look at how much the university will hurt financially if another round of state budget cuts is ordered. FAMU has lost $11.3 million in general revenues since July. However, Hardee said state universities could face an additional 5-percent cut — meaning a $5.3 million loss for FAMU.

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Higher education taking a hit on both ends, WOKV (Jacksonville)

By Jeff Hess
December 4, 2008

The recession is making it hard for parents to find the money to send their kids to college, but it is also taking chunks out of college endowments.

The cost of sending a kid to college is going up. A recent report by the National Center for Public Policy and Higher Education said it could soon be out of reachof most families.

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Tough times squeeze schools, The Voice (Oviedo and Winter Springs)

By Kristy Vickery
December 5, 2008

As steep budget cuts take a toll on Florida school districts, the cost of a quality education is getting harder to afford.

"We did a $700 million cut this year," said Joie Cadle, Orange County School Board chairwoman. "There's not much more to cut. We are down to the bone marrow."

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Legislature delays special session until '09, Tampa Tribune

By Gary Pinnell
December 5, 2008

The bad economic news just keeps getting worse.

Last year, Florida legislators learned the state would lose about $1 billion in revenue. Before they could act on that news, it turned out the state had actually lost $2 billion.

This month, they're learning that the 2008-09 budget year is another $2.1 billion in the hole.

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Economic report critical of further state budget cuts, WMNF News

December 1, 2008

It’s now official. For nearly a year, the U.S. economy has been in a recession.

That announcement came today from the National Bureau of Economic Research, the agency body charged with making that declaration. It’s the first official recession since 2001. And it follows two negative reports produced today on the economy.

According to the Institution for Supply Management, the manufacturing industry suffered its worst month since 1982. Also, a separate report from the Commerce Department showed that spending on construction projects fell 1.2 percent in October, after staying unchanged in September. Private construction dropped 2 percent with a sharp drop in the residential sector.

Meanwhile, here in Florida, the economic conditions continue to worsen. The state faces a shortfall of more than $2 billion in this year’s budget, and when lawmakers convene for the next official session next spring, that will expand to $6 billion.

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