Frequently Asked Questions and Answers€¦ · QUESTION: How much is the Governor proposing to...
2
Document updated: 10/21/15 governor rick scott QUESTION: How much is the Governor proposing to invest in the new Florida Enterprise Fund? ANSWER: Governor Scott is recommending that $250 million be dedicated to the new Florida Enterprise Fund. This new fund would replace the Quick Action Closing Fund and make much needed reforms, including: • Dedicating incentive funding so it can follow a company’s decision-making timeline over multiple years instead of reverting funds back to the state at the end of a fiscal year. • Streamlining the authorization process for competitive jobs projects by requiring the Speaker of the House and the President of the Florida Senate to sign off on competitive deals over a million dollars, while eliminating the scheduling of special legislative committee meetings. • Reforming the return on investment requirements of the funding dedicated to competitive jobs projects by requiring a 10 percent annualized return on top of the original amount invested in a company, while eliminating the use of special waivers. QUESTION: How is the Governor proposing to change the competitive project evaluation process with the Florida Enterprise Fund? ANSWER: Currently, competitive projects face several bureaucratic hurdles that create inconsistency and uncertainty for businesses looking to relocate or expand in Florida. Governor Scott is proposing the following revisions with the Florida Enterprise Fund: • Change the requirement from a minimum 5-to-1 return on investment to one where the state gets its incentive money back within 10 years, plus a 10 percent annualized rate of return. • Eliminate the current statutory waivers from Closing Fund project requirements, except the existing waiver for Florida’s rural areas of opportunity if the project would significantly benefit the local or regional economy. QUESTION: Why is the Governor not interested in using pay-as-you-go? ANSWER: Governor Scott hears from professional site selectors who are paid by large companies looking to relocate their offices across the country or the world that they look at a state’s cash on hand before considering a state for a possible relocation or expansion project. Several Site Selectors said they would not recommend a state where there was uncertainty about a company’s funding each year. Decision makers in business require certainty around their transactions and the prospect of facing legislative appropriation and approval year-after-year would be a significant hurdle for a state to overcome when they are looking to attract more business. Frequently Asked Questions and Answers: Moving Florida to First in Job Creation Governor Scott’s Proposals to Reform Economic Incentives
Transcript of Frequently Asked Questions and Answers€¦ · QUESTION: How much is the Governor proposing to...
Document updated: 10/21/15g o v e r n o r
r i c k s c o t t
QUESTION: How much is the Governor proposing to invest in the new Florida Enterprise Fund?
ANSWER: Governor Scott is recommending that $250 million be dedicated to the new Florida Enterprise Fund. This new fund would replace the Quick Action Closing Fund and make much needed reforms, including:
• Dedicating incentive funding so it can follow a company’s decision-making timeline over multiple years instead of reverting funds back to the state at the end of a fiscal year. • Streamlining the authorization process for competitive jobs projects by requiring the Speaker of the House and the President of the Florida Senate to sign off on competitive deals over a million dollars, while eliminating the scheduling of special legislative committee meetings.
• Reforming the return on investment requirements of the funding dedicated to competitive jobs projects by requiring a 10 percent annualized return on top of the original amount invested in a company, while eliminating the use of special waivers.
QUESTION: How is the Governor proposing to change the competitive project evaluation process with the Florida Enterprise Fund?
ANSWER: Currently, competitive projects face several bureaucratic hurdles that create inconsistency and uncertainty for businesses looking to relocate or expand in Florida. Governor Scott is proposing the following revisions with the Florida Enterprise Fund:
• Change the requirement from a minimum 5-to-1 return on investment to one where the state gets its incentive money back within 10 years, plus a 10 percent annualized rate of return.
• Eliminate the current statutory waivers from Closing Fund project requirements, except the existing waiver for Florida’s rural areas of opportunity if the project would significantly benefit the local or regional economy.
QUESTION: Why is the Governor not interested in using pay-as-you-go?
ANSWER: Governor Scott hears from professional site selectors who are paid by large companies looking to relocate their offices across the country or the world that they look at a state’s cash on hand before considering a state for a possible relocation or expansion project.
Several Site Selectors said they would not recommend a state where there was uncertainty about a company’s funding each year. Decision makers in business require certainty around their transactions and the prospect of facing legislative appropriation and approval year-after-year would be a significant hurdle for a state to overcome when they are looking to attract more business.
Frequently Asked Questions and Answers:
Moving Florida to First in Job CreationGovernor Scott’s Proposals to Reform Economic Incentives
Document updated: 10/21/15g o v e r n o r
r i c k s c o t t
Moving Florida to First in Job CreationGovernor Scott’s Proposals to Reform Economic Incentives
QUESTION: With the new Florida Enterprise Fund, what will happen to the millions of dollars sitting in a low-interest/non-state escrow account while companies meet their contractual obligations?
ANSWER: The Florida Enterprise Fund will exist for the sole purpose of encumbering funds and making payments to companies under Quick Action Closing Fund contracts. This would be a state trust fund whose proceeds would earn a higher level of interest than the existing non-state Closing Fund escrow account.
QUESTION: Why does the Governor think it’s important to make reforms to the current program by starting a new Florida Enterprise Fund?
ANSWER: Florida’s current toolkit is almost bankrupt and its bureaucratic processes put Florida at a competitive disadvantage when competing for jobs prospects against other states. Florida lost competitive projects to states who provide greater resources for attracting major job creators. Projects Florida recently lost include:
• The Active Network to Texas - 1,000 jobs; • Mercedes to Georgia - 800 jobs; • Goodrich/UTC to New Mexico - 300 jobs; • Sierra Nevada Corp to Colorado - 200 jobs; • Remington to Alabama - 1,918 jobs.
QUESTION: How will the Governor’s new Florida Enterprise Fund help small businesses in Florida?
ANSWER: Smaller projects with proposed awards of $1 million or less will need approval only from the Governor to receive funding. If a competitive project will create 10 jobs or 10,000 jobs, Florida will stand ready to do all it can to bring it to the Sunshine State.
Frequently Asked Questions and Answers:
