Budget cuts put crimp in business recruitment

By James Thorner, Times Staff Writer
Posted: May 08, 2008 07:52 PM

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What's happened to Florida's grand plan to diversify its economy from its reliance on tourism and home construction? Hard-pressed to cut costs, state legislators have temporarily zeroed out three incentive programs once approved for $385-million. Enterprise Florida, the state's top business-recruitment agency, noted that the cuts leave it without routinely used tools to attract new businesses. Enterprise is fond of saying it delivers $5.24 in additional taxes for every $1 invested in the agency. But state budgeters not only trimmed $600,000 from the agency's core budget, but failed to add fresh money to a $250-million incentive fund designed to land large-scale research projects. Also frozen out from additional funding this year is the $100-million Centers for Excellence program that helps research universities move products to the market. The state also plans to freeze appropriations for the $35-million in Capital Formation tax credits to help attract startup venture capital. "A difficult economy and a decline in revenue prompted hard decisions," Enterprise Florida president John Adams said.