The $840 million House 'tax' hike

Florida House leaders sure are against raising taxes. So they're calling them "fees" instead.

Consider the $837.9m "fee" increases unveiled Thursday by the House Tourism and Economic Development Appropriations Committee. The increases hit drivers everywhere, from driver licenses to a "rental car surcharge." Even the "reflectorization fee" for license plates is going up by $1.50.

So are these fees or taxes?

"You can look at it any way you want," said Plant City Republican Rep. Rich Glorioso, who chairs the Tourism and Economic Development Committee. "We don't have a lot of choices. When you realize that, when you raise tag fees... that money is going to education and medical. It's going to take care of somebody who needs those types of services. Will I like it? Absolutely not. But I know I have to do it. It's the right thing to do."

Florida House leaders sure are against raising taxes. So they're calling them "fees" instead.

Consider the $837.9m "fee" increases unveiled Thursday by the House Tourism and Economic Development Appropriations Committee. The increases hit drivers everywhere, from driver licenses to a "rental car surcharge." Even the "reflectorization fee" for license plates is going up by $1.50.

So are these fees or taxes?

"You can look at it any way you want," said Plant City Republican Rep. Rich Glorioso, who chairs the Tourism and Economic Development Committee. "We don't have a lot of choices. When you realize that, when you raise tag fees... that money is going to education and medical. It's going to take care of somebody who needs those types of services. Will I like it? Absolutely not. But I know I have to do it. It's the right thing to do."

$1 cigarette tax passes first hurdle

The Senate Finance and Tax Committee unanimously voted Tuesday to raise the cigarette tax $1 per pack and increase the tax on cigars and smokeless tobacco by $1 per ounce.

Supporters called it a historic opportunity to raise nearly $1 billion in new revenue, use the money to discourage smoking and offset the state’s Medicaid program that pays to treat sick smokers. Opponents warned it would devastate Florida’s hometown cigar business and kill jobs. They called it a shell game based on bogus numbers that won’t realize the savings lawmakers expect.

“You can’t get there from here,’’ warned John French, lobbyist for cigarette maker Altria, formerly Philip Morris. He tried to dismantle the revenue projections lawmakers assumed when passing the bill. “You’re basically victimized by frankly sloppy work by the people who make these numbers.”

Senators defended the proposal, pushed by Democrat Ted Deutch and Republican Thad Altman. It is expected to win widespread approval in the Republican-led Senate, as lawmakers warm to raising the vice tax.

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For Florida Lottery chief, a rough outing

A House committee spent 90 minutes skewering Lottery Secretary Leo DiBenigno on Tuesday, and demanded explanations for why he didn't follow specific budget language known as proviso that was approved last session.

The language, found on Page 335 of the current budget, ordered DiBenigno to "competitively solicit for advertising contracts" and told the lottery it "may not extend or renew the current contracts." Instead, the lottery entered into a month-to-month basis with the same agency, Cooper DDB of Miami, whose lobbyist is former Lottery Secretary David Griffin.

By the time DiBenigno got around to seeking new advertising proposals, it was Feb. 6, eight months into the fiscal year, and the letter of solicitation referred to "an informal competitive process." That choice of words, which DiBenigno himself acknowledged was "very poor," further antagonized the Legislature.

Rep. Alan Hays, R-Umatilla, chairman of the House Governmental Operations Appropriations Committee, led the grilling of DiBenigno, and urged the lottery chief to start from scratch and seek proposals from advertising agencies through a formal process known as an ITN (invitation to negotiate).

"This time, we did not get the results we wanted," Hays told DiBenigno. "We look forward to a much better performance next time."

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TABOR dying in Senate

For the third time, a Senate panel has tabled a bill establishing TABOR-style caps on local and state government.

The bill, sponsored by Sen. Mike Haridopolos of Melbourne, was supposed to come up in the Governmental Oversight and Accountability Committee, but it was tabled without discussion. (On March 18, several Republicans told Haridopolos it was not prudent to pursue in this economic climate.)

Today's announcement led to an exodus of city and county lobbyists and officials from the room. Outside, they expressed something just short of victory. "We're cautiously optimistic," said Craign Mosteller of the Florida Association of Counties.

Haridopolos said afterward that he is focused on the budget. He did not concede defeat but noted that the goal is to get the measure on the 2010 ballot, meaning next session is in play too.

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Bill to let Americans visit Cuba gains steam

WASHINGTON — With a new administration that is seen as open to the possibility of changing U.S.-Cuba policy, a bipartisan group of senators unveiled a bill today that would permit Americans to travel to the communist island.

Advocates contend that the bill, which has failed at least twice before, is building enough widespread, bipartisan support to pass during this session of Congress, and they see it a as a step toward ending the U.S. embargo on trading with Cuba.

Ending the embargo now is "a step too far," but ending the rules that prohibit most Americans from traveling to Cuba "is something people understand," said Sen. Chris Dodd, D-Conn., a leading sponsor. (Story here.)

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House approves workers' comp bill

The Florida House passed, as expected and along mostly party lines, a bill to restore limits on attorney fees for injured workers who are wrongly denied claims.

The Florida Chamber of Commerce and other businesses' lobbies pressed for the bill after the Florida Supreme Court reversed the 2003 state law limiting fees. The vote was 84-35, with Tampa Republican Ed Homan joining Democrats in opposition. Homan, a physician, said rates have come down and to act now "is irresponsible."

But House insiders said there was more in play, that Homan is still upset that bill sponsor, Rep. Anitere Flores of Miami, helped squash a 2007 move to include a cervical cancer vaccine in required school immunizations. Previous coverage here.

The bill's fate is less certain in the Senate, which is generally more receptive to trial lawyers.

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$1 billion from gambling plan not possible

State economists threw cold water on the vaunted projections of the Senate's ambitious gambling bill bringing in more than $1 billion.

The real number should be closer to $400 million, with the new money coming from giving the Seminole Tribe full casino gambling, the economists said. But the net effect of opening more games for parimutuels is an immediate decline in net revenue. Here's a link to the report.

Here's a breakdown of their conclusions:

Crist seems to acknowledge cig tax coming

Gov. Charlie Crist says he's still opposed to a cigarette tax increase, but he sounds increasingly resigned to one coming from the Legislature. As long as the deal excludes cigars.

"I'm not particularly fond of any taxes, user fees may be a different item, so we'll see how it progresses in the House and Senate," Crist told reporters. "They have a tough job, our members. We've already cut over $7 billion over the past two years. ... We know that we have to be in balance."

Is it easier to go along with the tax if new revenue is dedicated toward low-income or child health care? "Well, I'll leave that to the Legislature. They've got a tough job filling these holes as it is. So I don't want to be restrictive in how it might be utilized except for the betterment of the people of Florida."

Crist said he definitely does not want to see cigars included, a provision of the Senate proposal. "Obviously that's an industry in Florida that has a great tradition, especially in the Tampa Bay area and probably some other parts of the state. I would like to see that removed, if possible."

See video below.

Senate committee shuts down Storms' bill to kill newspaper notices

A bill that would remove the requirement that local governments publish their official notices in printed newspapers was halted by the Senate Community Affairs Committee on Tuesday when the chairman, Sen. Mike Bennett, said he was ordering a staff study over the summer instead.

The measure, SB 2292, being pushed by Sen. Ronda Storms, would have allowed local governments to replace the printed notice with an Internet notice and a direct mailer to citizens who signed up to receive them. Storms said she had no idea how much the shift in practice would cost but noted that cities and counties "loved it.''

By contrast, killing the bill was the top priority of the Florida Press Association, and was opposed by AARP and Associated Industries of Florida.

Penny gas tax could kill clean energy bill

Much-anticipated legislation to encourage clean and renewable energy in Florida appears in danger of dying, but not because of concerns over the inclusion of nuclear energy. Instead, a penny gas tax threatens to squelch the "20 by 2020" proposal, one of Gov. Charlie Crist's legislative priorities.

Bill sponsor Sen. Jim King, chair of the chamber's energy and utilities committee, said the penny tax on fuel is necessary to ensure that the renewable and clean energy legislation is actually implemented. It would generate roughly $90 million a year, half to go into a trust fund for helping to develop renewable energies, and half to go into general revenue.

"Without that money, this bill won't go anywhere," he said. "It will just look good and sound good."