BOARD IONERS DATE: February 16,2010 AGENDA ITEM NO.

Consent Agenda Public Hearing 15.

County Administrator's Siqnature

Subiect:

Adoption of 2010 - 201 1 Federal Legislative Program

Department:

County Administrator's Office

Staff Member Responsible:

~ \ ~ l i t h i a V. Stanfield, Assistant County Administrator

Recommended Action:

I RECOMMEND THE BOARD OF COUNTY COMMISSIONERS (BOARD) ADOPT THE ATTACHED 2010 - 201 1 FEDERAL LEGISLATIVE PROGRAM.

Summary Explanation/Backgmund:

Each year the Board adopts a federal legislative program which includes federal appropriation requests and policy recommendations. The attached document reflects the proposed program for 201 0 -201 1 and proposed projects for the reauthorization of the federal transportation program. It was developed based on projects submitted by the departments and review of the Capital Improvement Program; and consultation with the Board's federal consultants and Congressional staff.

New earmark disclosure rules mandate that earmark sponsors be listed in the reports accompanying the spending bills. This transparency subjects Congressional Members and projects to greater scrutiny, limiting House Member support for projects located within hisher Congressional District and Senate support for projects yielding a statewide impact. In addition, local/non-federal funding commitments (generally a minimum of 20% is necessary). To illustrate the impact of these actions on earmarks, in FY2008 the number and funding amount of earmarks were reduced dramatically from prior years, in some cases by as much as 50%. Overall project numbers decreased an additional 15% in FY2009, and preliminary estimates indicate the amount of money earmarked in FY2010 bills has dropped an additional 30%.

The .current surface transportation law, Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) expired on September 30, 2009. The most recent extension is through February 2010. The transportation reauthorization policy debate began in late summer of 2008 but the key issue has been sources of revenues for the program. A provision of the House Jobs legislation, HR 2847, would provide a further extension until Sept. 30, 2010.

Revised 07-1 8-03 Page I of 2

d

The recommended appropriations prioriiies for the 201 0 - 201 1 federal fiscal year are:

Beach Erosion Control Beckett Bascule Bridge At-Risk Youth Diversion and Recidivism Prevention Program

The transportation reauthorization projects listed on page 4 of the attachment are in priority order as adopted by the Board in February 2009.

Per the Board's directives at the January 12, 201 0, Work Session the following position statements were revised:

Climate Change: Statement was revised to be more precise and limited.

Sales Tax Reform: Statement was revised to provide clarity, and to support the Board's current position on on-line travel companies. According to the Center for Business and Economic Research at the University of Tennessee, states will lose as much as $23 billion in 2012 because they are unable to collect taxes on remote sales, including the internet; Florida is estimated to lose as much as $1.4 billion. There is currently a voluntary streamlined sales tax initiative; the Streamlined Sales and Use Tax Agreement was created by the National Governor's Association (NGA) and the National Conference of State Legislatures (NCSL) in the fall of 1999 to simplify sales tax collection. This Agreement is the result of the cooperative effort of 44 states (including Florida), the District of Columbia, local governments and the business community to simplify sales and use tax collection and administration by retailers and states. It minimizes costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states and encourages "remote sellers" selling over the lnternet and by mail order to collect tax on sales to customers living in the Streamlined states. The Agreement levels the playing field so that local "brick-and- mortar" stores and remote sellers operate under the same rules. To date, 23 of the 44 states have passed conforming legislation.

The attached report by Florida Tax Watch indicates that out-of state on-line shopping costs Florida over 112,000 jobs in 2008. In response to the inquiry of how much are citizens saving - staff was unable to obtain an answer to this question, since the buyer is responsible for the tax whether it is collected or not. Florida law imposes a 6 percent use tax, if the seller does not collect the tax; the burden to voluntarily comply with this requirement is the buyer's. According to F.S. 212.15, any person who fails to remit the tax is guilty of theft of state funds. Penalties are based on the value of the "stolen revenue" and number of convictions, ranging from a misdemeanor of the second degree to a felony of the first degree.

The proposed position statement is not a tax on the internet. The lnternet Tax Freedom Act created a moratorium on any new, multiple or discriminatory taxes on electronic commerce.

Unfunded Mandates: Statement was revised to define an unfunded mandate.

Fiscal lmpactlCostlRevenue Summary:

Not Applicable

ExhibiilAttachments Attached:

201 0 - 201 1 Proposed Federal Legislative Program Florida Tax Watch, Special Report

Revised 07-1 8-03 Page 2 of 2

2010 - 2011 PROPOSED FEDERAL LEGISLATIVE PROGRAM

PINELLAS COUNTY BOARD OF COUNTY COMMISSIONERS 201 0-201 1 FEDERAL APPROPRIATION REQUESTS

PRIORITIES

Beach Erosion Control: Conduct periodic renourishment of nine miles of critically eroded beach from Clearwater to North Redington (Sand Key Beach). Request: $11.3 million

Beckett Bascule Bridge Replacement: Support ,project development and engineering study. Request: $200,000

At-Risk Youth Diversion and Recidivism Prevention Program: Partner with the Pinellas County Sheriffs Office, and community agencies to provide community assessment services, case management, and aftercare to steer low- risk youth towards productive activities and redirect high-risk youth into more stable community engagement. Request: $300,000

PINELMS COUNTY BOARD OF CQkBNTY COMMISSIONERS 2010 - 201 1 FEDERAL APPROPRIATIONS REQUESTS

COMMUNITY AND ECONOMIC DEVELOPMENT

Appropriation Amendment: Seek a technical amendment to reallocate funds directly to the Board of County Commission that was released by a community organization in which the BCC served as the grantee. Funds may be used to assist with a capital project that serves or is used by the community. Reallocation: $250,000

HEALTH AND HUMAN SERVICES

Primary Care - Behavioral Health Care Integration: Provide a pilot project to co- locate mental health services at three primary care medical homes. Request: $145,000

PHYSICAL ENVIRONMENT

Beach Erosion Control: Conduct periodic renourishment of nine miles of critically eroded beach from Clearwater to North Redington (Sand Key Beach). Request: $11.3 million or $3.5 million (The cost differential is based on the sand source)

Ft. Desoto Park Ecological Enhancement Phase 11: Enhance the ecology of the marine area by removal of causeways and restoring historic tidal flow between the bays. Request: $700,000

PUBLIC SAFETY

At-Risk Youth Diversion and Recidivism Prevention Program: Partner with the Pinellas County Sheriffs Office, and community agencies to provide community assessment services, case management, and aftercare to steer low-risk youth towards productive activities and redirect high-risk youth into more stable community engagement. Request: $300,000

Forensic Lab: Equipment to increase capacity and efficiency of the toxicology section of the Pinellas County Forensic Lab. Request: $350.000

TRANSPORTATION

Beckett Bascule Bridge Replacement: Support project development and engineering study. Request: $200,000

Joe's Creek Greenway Pedestrian Crossing: Provide a pedestrian crossing of the creek to provide access to both sides of the Greenway for park users. Request: $370,000

TRANSPORTATION REAUTHORIZATION PROJECTS PREVIOUSLY SUBMITTED

U.S. 191Enterprise Road Safety Improvements: Design and construct safety improvements of the middle gap of partially controlled access on the US Highway 19 corridor. Request $15 million

1 1 8 ~ ~ Avenue Expressway: Construct a limited access road from US Highway 19 to State Road 686 Connector with a grade separated interchange at 49" Street and a southbound to eastbound flyover from U.S. Highway 19. Request: $30 million

ITS Phase I1 Implementation: Complete implementation of Phase II of the Countywide Intelligent Transportation System (ITS) which includes completion of Belcher Road, all of Starkey Road and Mth street. Request: $16 million A Tiger Grant application for $46.3 million was submitfed for completion o f Phase I1 o f ITS and a component of Phase 111.

PINELLAS COUNTY BOARD OF COUNTY COMMISSION 2010-201 1 FEDERAL POLICY ISSUES

Aviation: Support Federal Aviation Administration Reauthorization that includes a well-funded Airport Improvement Program with guaranteed funding from the Aviation Trust Fund.

Beach Nourishment: Support current legislation and appropriation that ensures continued federal participation, in partnership with state and local governments, in beach management, harbors, navigation, and flow control projects.

Clean Water Act: Supports federal funding to meet all Clean Water Act (CWA) mandates imposed on counties and opposes federal efforts to change the definition of the Clean Water Act from navigable waters to 'ivaters of the United States," and the expansion of federal agencies' authority and responsibilities in regard to these waters.

Climate Change: Support immediate and long-range efforts by the federal government to involve all levels of stakeholders to mitigate greenhouse gas emissions and reduce vulnerability bv developing adaption strategies for the impacts of ,climate change through a series of practical incentives.

Support increased federal funding for a 4 h w x ~ 4 efficient and cost effective greenhouse gas emissions reductions and adaptation strategies.

Emergency Preparedness: Support the provision of adequate and consistent resources for the Federal Emergency Management Agency to ensure rapid federal response and reimbursements to local governments.

Support efforts to ensure counties included in a presidential disaster declaration are reimbursed by the Federal Emergency Management Agency for debris removal from both public and private property.

Homeland Security: Support the Tampa Bay region's continued designation on the funding list for the Urban Areas Security Initiative to ensure our ability to mitigate the higher risk levels of our community.

Support amendments to the criteria for the Assistance to Firefighters Grant Program to allow local governments that coordinate fire and emergency medical services to be an eligible applicant.

Homelessness: Support consolidation of the programs under the McKinney-Vento Homeless Assistance Act into a single block grant program to streamline program rules into one set of requirements and increase the flexibility to administer homeless assistance based on local need.

Housing: Protect funding for the Community Development Block Grant program and preserve it within the Department of Housing and Urban Development (HUD).

Support full funding of the Section-8 Housing Choice Voucher Program and reforms that will enhance efficiency and effectiveness of the program to expand affordable housing alternatives.

Support revision of the recapture and reuse language in the HOME Investment Partnerships Program to distinguish between "any" funds and a "participating jurisdiction's annual allocation."

Off-Shore Drilling: Maintain the current moratorium on drilling within the Eastern Planning Area of the Gulf of Mexico off the state of Florida.

Sales Tax Reform: Support legislation that will authorize states to participate in an interstate sales tax compact and require remote sellers to collect taxes due to state and local taxing . . authorities s. Support legislation that ensures equitable tax treatment for online travel companies regarding the remittance of taxes to the state and local taxing authorities.

Surface Transportation Reauthorization: Support a comprehensive legislative effort to reauthorize the highway, transit, and safety programs with a particular emphasis on funding that meets the growing transportation needs.

Telecommunications: Support rewriting provisions of the Telecommunications Act of 1996, which include protecting existing authorities and revenues, and addressing issues of convergence across a broad range of communications and technology platforms.

Support maintaining local control over the siting of wireless towers and antennas and zoning of digital television towers.

Monitor proposed changes in law and FCC regulations that may affect E-911, franchising, interoperability, public channel broad-based signal capacity, Voice Over .Internet Protocol (VOIP), and communication services fees.

Transit: Support efforts to secure additional federal capital and operating dollars for transit services.

2-1-1: Provide states with dedicated funding to build on efforts to provide access to quality community information and referral services through nationwide implementation of 2-1-1.

Unfunded Mandates and Preemptions: Oppose any federal actions that limit the ability of local governments to

make sound fiscal and public policy decisions by compelling them to provide a service, proaram, or benefit without appropriate resources for implementation.

Oppose legislation or regulations that preempt county authority, such as land-use regulatory authority, telecommunications and cable rights of way, and other locally-based functions.

Special Report February 2009

106 N. Bronough St. P.O. Box 10209 Tallahassee, FL 32301 (850) 222-5052 FAX (850) 222-7476

This report was initially released electronically before be in^ printed in hardcopy f o r m

Out-of-State Online Shopping Costs Florida Thousands of Jobs

Introduction Online shopping has significantly accelerated during the past several years. In 2007, the United States Census Bureau reported a combined $136 billion in e-commerce sales by retailers and service providers.1 The estimate for the third quarter of 2008 was $34.4 billion for U.S. retail e- commerce sales and $1,018.8 billion for U.S. retail total sales. E-commerce retail sales in the third quarter of 2008 accounted for 3.4 percent of total retail sales. According to Census data, rapid growth in online retail sales will continue despite a decline in overall retail sales. However, online shopping costs the state thousands of jobs because of the corresponding fall in the state spending. Using two econometric models, this study estimates the job losses due to the decline in the state spending resulting from e-commerce sales.

Methodology The study uses both REMI and IMPLAN econometric models to estimate direct, indirect, and induced impacts of reduced consumer spending in Florida due to online shopping. REMI is based on a nationwide input-output model that captures inter-relationships among sectors and measures the impact of changes in economic variables on overall economic activity. The REMI model used for this analysis was specifically developed for the state of Florida and includes 169 sectors. REMI is used by the Florida Legislature's Division of Economic & Demographic Research, the Florida Agency for Workforce Innovation, other state and local govemment agencies, universities, and private research groups that evaluate economic impacts across the state and nation.

The IMPLAN model is used by more than 500 universities and govemment agencies to: estimate the economic and fiscal impacts of investments andlor changes in industry; forecast tax revenue and employment generation; and conduct economic comparison studies of two or more geographic locations. IMPLAN is a computer software package that consists of procedures for estimating local input-output models and associated databases. The acronym is for Mpact PLanning and ANalyses. IMPLAN was originally developed by the U.S. Forest Service in cooperation with the Federal Emergency Management Agency and the U.S. Department of the Interior's Bureau of Land Management to assist in land and resource management planning.

U.S. Census ~&eau E-Stats data, h~://www.cemus.crov/eod~~~/eb~~i1]ess614.htrn, retrieved on January 5, 2009.

- -

"Improving taxpayer value, citizen understanding and government accountability. "

Data There is no state-level data on e-commerce sales. However, using the Census Bureau's e- commerce retail sales fraction of total retail sales (3.4 percent) and Florida's total taxable sales ($329.2 billion2), we estimate the total annual e-commerce sales for the state as $1 1.2 billion for 2008. For the REMI modeling, we distributed the estimated $11.2 billion decline in the consumer spending among durables and non-durables due to e-commerce sales. For the Ih4PLAN modeling, we distributed $1 1.2 billion reduction in household spending among the nine income levels.

It is important to mention two caveats about the estimated data above. First, it includes both in state and out-of state online sales. By including Florida-based e-commerce, this analysis may overstate the Florida job losses; however, the analysis also does not capture other distance selling by phone, TV, mail order including catalogue shopping, phone or fax, which will offset at least some of that overstatement. Second, the estimate is only a partial count of all e-commerce sales. The estimate by the Census Bureau might be too low. For instance, a recent study by Forester Research estimated that online sales were 8 percent of all retail sales in 2008,~ which was more than double the comparable Census estimate. Considering these caveats, the data used in this study is a reasonable proxy for the out-of state e-commerce sales.

Findings Both models estimated over 112,000 job losses for the estimated $1 1.2 billion e-commerce sales in 2008, which means a little over 10,000 lost jobs for every $1 billion worth of online shopping. In other words, every $100,000 worth of online shopping from other states and countries costs one Floridian to lose hisher full-time job.

Estimated Impact of Annual Internet Sales on Jobs in Florida

Estimated Annual Job Losses

112,119 112,855

REMI IMPLAN

Florida Legislature, Office of Economic and Demographic Research (EDR), ht~://&.state.fl.us/data/sales~data.htn, retrieved on January 5,2009.

Forrester Research website: h t tp : / /www.for res te r .com/Research~oc~.7211,45508.00 .h~~, retrieved on January 5,2009.

Estimated Annual Internet Sales $1 1.2 billion $1 1.2 billion

Estimated Annual Job Losses

10,018 10,084

REMI IMPLAN

Estimated Annual Internet Sales

$1 billion $1 billion

Estimated Annual Job Losses

1 1

REMI IMPLAN

Estimated Annual Internet Sales

$99,820 $99,169

The estimated jobs lost will be in variety of industries with a heavy concentration in the retail industry. To provide some context for these job losses, the table below shows the median annual salary for all occupations in Florida is $29,960, or $14.40 per hour. An entry level worker can expect to earn $1 8,700 ($8.99 per hour) while an experienced worker can expect to earn $48,670 ($23.40 per hour).

Annual and Hourly Wages for All Occupations in Florida

Source: Florida Agency for Workforce Innovation, Labor Market Statistics

Annual Hourly

This Florida TaxWatch Special Report was written by Necati Aydin, Ph,D., Senior Research AnalystdEconomist under the supervision of David Macpherson, Ph.D., Interim Senior Director of Research and Development and a member of Florida Council of Economic

Advisors at Florida TaxWatch, Director of the Pepper Institute at Florida State University where he holds the Rod and Hope Brim Eminent Scholar Chair in Economics, with the

direction of Dominic M. Calabro, President and CEO.

David A. Smith, Chairman; Dominic M. Calabro, President, Publisher, and Editor.

Florida TaxWatch Research Institute, Inc.

www.FloridaTaxWatch.org

0 Copyright Florida TaxWatch, February 2009

About Florida Tax Watch Florida TaxWatch is a nonpartisan, nonprofit research institute that over its 30-year history has become widely recognized as the watchdog of citizens' hard-earned tax dollars. Its purpose is to provide the citizens of Florida and public o f f ~ i d s with high quality, independent research and education on government revenues, expenditures, tmdz'on, public policies andprogram. The three- pronged mission of Rorida TaxWatch is to improve taxpayer value, government accountabili@, and citizen understanding and constructive participafion in their government.

The Florida TaxWatch Board of Trustees is responsible for the general direction and oversight of the research institute and safeguarding the independence of the organization's work In his capacity as chief executive oflier, the president is responsible for formulating and coordinating policies, projects, publications, and selecting professional staf3: As an independent research institute and taxpayer watchdog, Florida TaxWatch does not accept money Jiom Florida state and local governments. The research findings and recommendations of Florida TaxWatch do not necessarily reflect the view of its members, staff; distinguished Board of Trustees, or Executive Committee, and are not influenced by the positions of the individuals or organizations who directly or indirectly support the research.

Total Jobs

77963,010

Mean Wage $38,680 $18.59

Entry Wage $1 8,700 $8.99

Exp. Wage $48,670 $23.40

Median Wage $29,960 $14.40

For a copy of this Special Report, please call: (850) 222-5052

OR Write to Florida TaxWatch at: P.O. Box 10209

Tallahassee, FL 32302 OR

Access and download the report at: www.FloridaTaxWatch.org, where this Special Report was initially

released before being printed in hardcopy format

106 N. Bronough Street P.O. Box 10209 TaIIahassee, FL 32302

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