TBO.com - TBO is Tampa Bay Online

Money To Lure Business To State Slashed In Budget

ADVERTISEMENT

By MICHAEL SASSO

The Tampa Tribune

Published: June 13, 2008

ORLANDO - Florida has managed to create a small scientific research industry that has put the state on the life sciences map, even if its industry is tiny when compared with Boston or San Diego.

But now state and local economic development leaders may have to keep up the momentum with far fewer tools in their toolbox. Some of the state's most powerful business incentive programs have been gutted, at least for the next year.

On Thursday, Enterprise Florida, the public-private entity that leads Florida's economic development efforts, held a somber board meeting in Orlando. Among the massive cuts to the state's incentive programs and to local economic development agencies are:

•Innovation Incentive Fund. The state and local governments have tapped into this fund to help entice at least six research institutes to Florida since 2006, according to state data. In December, three institutes were awarded nearly $240 million from the fund to locate in Florida. They are the Max Planck Society, a German research institute that will go to Jupiter; the Oregon Health and Science University, which will develop vaccines at a St. Lucie County lab; and a genetics research institute at the University of Miami's medical school.

One local institution that got funding was SRI International, which received $20 million from the fund to establish an ocean science and port security institution in St. Petersburg. State legislators pumped $250 million into the innovation fund for the current fiscal year, but it will receive nothing next year because of budget cuts.

•Economic development budgets. Enterprise Florida's budget was reduced to $11.9 million next year from $12.5 million this year. Locally, the Pinellas County Economic Development Department will operate with 20 percent less money this year than last year. That will mean cutting six positions, bringing its staffing level to 16 from 22, agency director Mike Meidel said.

In Hillsborough County, the Economic Development Department expects its budget to be cut by $275,000 and it will lose two positions, agency director Gene Gray said Tuesday before heading to the Orlando meeting.

One notable exception to the cutbacks was the state's "road fund," which is used to help defer the cost of new connector roads for companies moving into Florida. Legislators doubled funding to $20 million for next year from $10 million.

Incentive programs often are criticized as corporate handouts to business, but economic developers insist they are important tools to compete against other states that are lavishing tax breaks and incentives on business.

"I am actually very concerned about our ability to compete over the next couple years as a state," said Gray, who sits on Enterprise Florida's board.

Despite the challenges, John Adams, Enterprise Florida's chief executive officer, insisted that Florida will continue to attract jobs and new business in the next year or two. He said the big scientific research institutions get all the attention, but the state has been able to lure aviation, biofuel, manufacturing and financial services companies to the state in the past year.

"Our pipeline is no less full of companies looking right now," Adams said.

Reporter Michael Sasso can be reached at msasso@tampatrib.com or (813) 259-7865.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT