Latest news with #FloridaTaxWatch
Yahoo
04-06-2025
- Business
- Yahoo
Florida must strengthen its electrical grid before it's too late
A few years ago, millions of Texans were left freezing in the dark when a historic winter storm caused rolling blackouts. The failure wasn't just due to the storm — it was a failure of preparation, regulation and investment in energy resilience. Now with the new hurricane season upon us and with Florida's vulnerability to hurricanes and rising energy demands, Florida cannot afford to make the same mistake. With Canada imposing tariffs on electricity exports, energy security is once again a national concern. Florida may not rely on Canadian energy, but that doesn't mean we are immune to an increasingly unstable energy market. If shortages or price spikes hit other regions, Florida could find itself isolated, struggling to secure power when needed most. At Florida TaxWatch, we believe protecting taxpayers means planning ahead. Our April 2021 briefing, 'Revisiting Efforts to Deregulate Florida's Electric Power Market, What We Learned From Texas' Recent Blackouts,' showed that energy reliability isn't just about keeping the lights on — it's about ensuring economic stability, public safety and the long-term sustainability of Florida's growth. We must do more to secure our electric infrastructure grid before disaster strikes. Florida's power grid faces mounting risks, from hurricanes to cyber threats and supply chain disruptions. Without investment in grid infrastructure, power outages will become more frequent, longer lasting and costly. Every hour of lost power costs businesses millions of dollars in lost productivity. For hospitals, emergency responders and vulnerable Floridians, power loss isn't just an inconvenience — it's a life-threatening risk. Beyond physical threats, economic forces also pose a risk. The recent Canadian tariffs highlight how external factors impact energy markets. While Florida may not import Canadian electricity, we depend on fuel and equipment supply chains that could be disrupted by trade tensions or domestic regulatory shifts. First, Florida must continue strengthening its electrical grid against storms. While the state has been a leader in hurricane preparedness, grid modernization must remain a top priority. Investments in underground power lines, microgrids and resilient infrastructure can prevent prolonged outages when severe weather inevitably strikes. A storm-hardened grid means faster recovery, lower costs and fewer disruptions for businesses and residents alike. It also means fewer disruptions to our food supply and dramatically enhances our state and national security. More: Rolling the dice with Mother Nature: Trump's FEMA cuts would be a disaster Cybersecurity protections must also be a central part of Florida's energy strategy. The rise of cyberattacks on critical infrastructure poses a real and growing threat, and power grids are a prime target. Florida must invest in cutting-edge cybersecurity measures to protect against bad actors who could disrupt power systems, shut down essential services and cause widespread economic damage and potential loss of life and property. Finally, policymakers must strike the right balance in regulatory oversight. Smart regulation can ensure accountability and prevent failures like those seen in Texas, but excessive red tape could stifle the innovation and investment needed to build a stronger grid. Florida must remain vigilant in reviewing energy policies to ensure they promote reliability, encourage private-sector investment and protect taxpayers from unnecessary cost burdens. If Florida fails to act now, the price tag will be far greater later. Grid failures don't just impact homes and businesses — they can trigger economic downturns, drive away investors and put Florida's reputation, well-being and security at risk. Taxpayers deserve a plan that ensures Florida's energy future is stable, secure and affordable. Our state has led in disaster preparedness before — now, we must ensure the same for our power grid. Dominic M. Calabro has led Florida TaxWatch's world-class research team – the 'eyes and ears' of taxpayers – as president and CEO for nearly all of the organization's 45-year existence. This opinion piece was distributed by The Invading Sea website, which publishes news and commentary on climate change and other environmental issues affecting Florida. This article originally appeared on Palm Beach Post: A weak power grid is a life-threatening risk for Floridians | Opinion
Yahoo
20-05-2025
- Business
- Yahoo
Florida Business Leaders Sound Alarm: Head Start Cuts Would Worsen State's Childcare and Workforce Crisis
TALLAHASSEE, Fla., May 20, 2025 /PRNewswire/ -- A coalition of respected Florida business leaders is warning that proposed federal cuts to Head Start would dramatically worsen Florida's already severe childcare shortage, deepening the state's workforce crisis and damaging long-term economic competitiveness. The Florida Chamber Foundation, in partnership with the National Chamber Foundation, estimates that childcare disruptions cost Florida's economy nearly $5.4 billion annually, working parents miss shifts or leave jobs altogether to care for young children. The pending elimination of federal Head Start funding, floated in a leaked version of the President's budget, has sparked a new alarm. While a later version of the budget – known as the "skinny budget"—omitted any mention of Head Start, Florida leaders say that silence is cause for concern. "Eliminating Head Start would pour gasoline on the fire of our existing childcare crisis," said Paul Mitchell, policy expert with The Southern Group and board member of the Early Learning Coalition of the Big Bend. "We already know childcare gaps drive parents out of the workforce, reduce tax revenue for the state, and place immense strain on Florida families and employers." Head Start and Early Head Start programs serve roughly 45,000 low-income children under age five across Florida's 800+ centers. Losing this vital early learning infrastructure would not only devastate vulnerable families – it would cost the state an estimated $668 million annually to replace those services, double the current state budget for Voluntary Pre-K (VPK). Workforce Shortages + Economic Fallout According to the Florida Chamber Foundation, lack of childcare is the number one reason why working parents of young children leave the labor force. Over 281,000 Floridians reported leaving work in the past year specifically to care for a child, at a time when there are only 90 workers for every 100 open jobs. Florida TaxWatch -- the state's leading nonpartisan watchdog -- estimates that unreliable childcare costs the state more than $743 million in lost tax revenues and $1.7 billion in turnover expenses for businesses each year. "Gutting Head Start would amplify these devastating numbers," says Jeff Kottkamp, Florida TaxWatch Executive Vice President and former Lt. Governor who chaired Florida's Children and Youth Cabinet. "This isn't just a family issue, it's an economic one." , A Proven Return on Investment Head Start has been studied for decades and delivers one of the highest returns of any federal program. Nobel Prize-winning economist James Heckman found that every $1 invested in early childhood education generates up to $9 in taxpayer savings, due to long-term outcomes such as: Higher high school graduation rates Reduced crime and incarceration Fewer teen pregnancies Lower healthcare and public assistance costs Increased workforce participation "We'd be foolish to defund Head Start, it should be expanded," said David Lawrence, Jr., retired Miami-Herald publisher and chair of The Children's Movement of Florida. "We have decades of data showing the difference it makes not just for kids, but for the future of our country." A Call to Action Head Start is lauded for its direct-to-community funding model – cutting out bureaucracy to deliver local impact efficiently. "Families that once depended on welfare are now working, contributing, and thriving thanks to Head Start," said Wanda Minick, Executive Director of the Florida Head Start Association. "We urge business and community leaders to join us in advocating for this lifeline." TaxWatch's Kottkamp reinforces this point: "Access to high-quality affordable childcare is not only important for families—it's also important for our state's economy. The return on investment for taxpayers for the Head Start program is significant. Even more important, the Head Start program leads to better long-term socio-economic outcomes for children and families." Join the Effort Visit FHSA's website to learn how you can support Head Start and protect the future of Florida's children and workforce. About FHSA The Florida Head Start Association (FHSA) is a nonprofit membership organization dedicated to strengthening Head Start and Early Head Start programs across the state. Representing more than 45,000 children and families in Florida, FHSA champions access to high-quality. Head Start, a key player in the early childhood education landscape, providing critical services, including school readiness, comprehensive health support, and family support. Guided by the Head Start Program Performance Standards, FHSA empowers members to advocate, lead, and enhance the education, health, and social services provided to families by Head Start. For more information, please visit Media Contact: Wanda Minick, Executive Director(850) 694-6477Wanda@ View original content to download multimedia: SOURCE Florida Head Start Association Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
07-04-2025
- Business
- Miami Herald
Florida vs. California: How Two States Are Facing the Insurance Crisis
California and Florida have for years been the canary in the gold mine for a homeowner insurance crisis that experts warn might soon spread to many more states across the country. The two disaster-prone states, which face different challenges within their own markets, have seen homeowners insurance premiums skyrocket in recent years as carriers dealing with rising costs and growing catastrophe exposure either significantly hiked their rates or cut coverage in the most vulnerable areas, leaving homeowners with limited options. Despite facing similar challenges, the two states are experimenting with wildly different solutions-once again becoming examples for the rest of the country of the dos and don'ts of a crisis that is expected to spread across the nation. The homeowners insurance crises in California and Florida have drastically different causes, but they have one element in common: both coastal states are particularly vulnerable to natural disasters, with wildfires in California and hurricanes in Florida. In both states, the pool of available insurers has shrunk considerably in recent years, as carriers have preferred dropping policies instead of risking paying enormous claims that could easily put them out of business. Homeowners are ultimately the ones who are suffering the most from these dynamics, finding themselves torn between paying thousands of dollars a year in insurance or "going bare"-risking losing everything should a disaster strike. According to Mark Friedlander, senior director of media relations at the Insurance Information Institute (Triple-I), the Florida homeowner insurance crisis "was caused by manmade factors of legal system abuse and claim fraud, not storm losses." In fact, it is a combination of excessive litigation, widespread fraud and the increased risk posed by more severe and more frequent natural disasters that brought up homeowner insurance premiums in Florida in recent years, making the Sunshine State one of the most expensive in the country. Between 2019 and 2024, as multiple carriers went out of business or decided to either leave the state or cut coverage in some of the most at-risk areas, homeowner insurance rates in Florida rose by a staggering 42.5 percent, according to an analysis by Florida TaxWatch. As a result of limited availability in the market, the state's insurer of last resort, Citizens, ballooned in size, reaching a record 1.4 million policies in 2023. The sudden boom raised concern among experts and lawmakers worried that Floridians would be forced to bail out the insurer should it find itself unable to pay policyholders' claims after a particularly bad natural disaster. Florida has in part stabilized its insurance market by introducing sweeping tort reform measures between 2022 and 2023 to prevent out-of-control litigation in the state. Friedlander is among the experts who believe the changes have made a crucial difference for the state's insurance market. "Legislative actions addressed the crisis, resulting in a 40 percent year-over-year decline in new property claim lawsuits in 2024," he told Newsweek. "This has led to market stabilization and lower rates. The Florida Office of Insurance Regulation reported that average home premiums declined by 0.7 percent statewide in the fourth quarter of 2024, the first drop in nearly a decade." Florida has also been welcoming new, small insurers into its market, encouraging them to take over Citizens' policies as the company continues its depopulation efforts. "Eleven new property insurers have entered the Florida market and major national insurers are growing their market share," Friedlander said. "State-backed Citizens Property Insurance Corp. has dropped below 850,000 policies because of successful depopulation to a financially healthy private market. "Consumers have more choices for obtaining coverage and are seeing better pricing across the board. All signs point to continued stability throughout 2025." While the growing risk of devastating wildfires is the main driver behind California's homeowners insurance crisis, many have blamed state regulators for creating the conditions that led to the withdrawal of several major insurers from the state. According to Friedlander, California's "antiquated regulatory environment" prevented property insurers from correctly factoring in "climate risk or reinsurance costs into premiums." As a result of a law protecting homeowners from sudden rate hikes, Proposition 103, "Californians are paying artificially low home premiums that are not actuarially sound," Friedlander said. "This has led to private insurers pulling back on the market and a record level of growth for the California FAIR Plan, the state-backed insurer of last resort." The FAIR Plan, which provides fire insurance to homeowners who cannot find it on the private market, had a total exposure of $529 billion as of December 2024, up 15.5 percent from September 2024 and 217 percent from September 2021. As in Citizens' case, many have expressed concern that the FAIR Plan might not have enough cash to cover all of its claims-especially after the L.A. County fires in January. "The FAIR Plan faced a significant shortfall due to the Los Angeles fires and has implemented a $1 billion assessment to private insurers to cover fire loss claims," Friedlander explained. While the move was made to ensure wildfire victims got the help they need, insurers "will most likely pass along the cost of the assessment to their customers in the form of premium surcharges," Friedlander said, further raising rates for struggling homeowners. "However, the California Department of Insurance is implementing a Sustainable Insurance Strategy [SIS] that will allow property insurers to use climate risk modeling in their future pricing," he explained. "Over the next two years, we are hopeful this will create a roadmap to stability and growth of the private insurance market across the state. In fact, two major California home insurers, Farmers and Mercury, have announced their commitment to grow market share because of SIS." According to Dr. Martin Weiss, founder and CEO of independent rating agency Weiss Group, insurance companies and regulators in both states "underestimated the cost of damages driven by three powerful forces converging in one time and space: a massive wave of new construction, surging property values, and bigger-than-expected storms, wildfires and more." Both states created "backstops for the industry," he told Newsweek. "In Florida, they established Citizens Insurance, which operates much like any property insurer except for the fact that it's run by the state," he said. "In California, they created FAIR, which unlike Citizens, is a consortium of private-sector insurance companies." These two insurers of last resort were not designed to take the outsized role in the market they now have, Jesse Keenan, a professor of sustainable real estate and urban planning at Tulane University, told Newsweek. Faced with the sudden growth of Citizens and the FAIR Plan, Florida and California are trying to attract new insurers to their markets-though with very different strategies. "Florida has very active depopulation policies-policies associated with getting people off of the state's insurer of last resort and getting them back into the private market," Keenan explained. Part of those depopulation efforts has been to allow the participation of "under-capitalized, smaller insurance companies that are not necessarily as stable and reliable as conventional insurance companies of the past," he added. "That's probably been a mistake." In California's case, regulators are trying to keep insurers in the state, not just attract them, and to ensure that there's access to the marketplace. However, Keenan said, "they're stuck in a tough game because they don't want to end up like Florida, where Citizens covers most of the wind insurance risk in the state or a big chunk of it. They don't want [the FAIR Plan] to be a primary vehicle [in the market]. They know that it's in fact more risk than the state can really take on, in fiscal stability terms." What California regulators are trying to do, instead, is think of different ways of adding competition to the market without allowing "an arguably undercapitalized insurance company to enter the market," Keenan said. "So they're doing things, for instance, in terms of policy, like allowing insured parties, homeowners and property owners to undertake risk reduction investments at a property level, change the tiles on the roof to something fire resistant, change the landscape, all these things that you can do at a properly level that reduce risk, and then get a statutory reduction in premiums for that. It's not a huge reduction, but it's an incentive to get people to reduce risk at a property level." By contrast, Florida "really hasn't gone that route," Keenan said. "They've got a different route, which is, again, trying to track these smaller insurance companies, which many of whom have failed in recent years. Which, by the way, makes the state's problem even worse, because when it fails, then these insured parties get dumped onto the state." While Keenan is critical of Florida's approach, he doesn't think California got it right either. "I think what both states have failed to do is that they haven't used the authority of the state Legislature to dictate the terms of not just how we build, but where we build," he said. "In both states, it's really local counties and local municipalities that make the decisions about how and where to build. Now, in Florida, they implemented the Florida Building Code after Hurricane Andrew [in 1992], and that was very, very successful in reducing wind damages. And in many ways, Florida has been a national leader in updating building codes." California, on the other hand, has lagged behind in terms of updating building codes for a lot of different reasons, "mostly the political lobby and the homebuilding industry," Keenan said. Both states, overall, have been reluctant to tell local governments where they should be driving their growth in terms of land use and zoning decisions, "and ultimately that's what needs to be done to manage a lot of risk," Keenan said. "It's really a dual process of updating the building codes and shaping land use. Now, neither one of those decisions are particularly popular because it adds costs." Related Articles Trump-Stronghold The Villages in Florida Holds Large 'Hands Off!' RallyHow to Watch Florida vs Auburn: Live Stream NCAA Tournament Final Four, TV ChannelInside Trump Policy: The Art of the TariffHow To Buy Final Four Gear: Auburn, Duke, Florida, Houston 2025 NEWSWEEK DIGITAL LLC.
Yahoo
27-02-2025
- Business
- Yahoo
DeSantis softens call for end to property taxes, floats other options to lower assessments
Governor Ron DeSantis appears to be softening his call to eliminate property taxes in Florida. DeSantis put local governments on notice when he announced on social media he'd support the elimination of property taxes earlier this month. RELATED: 'A tremendous hit': Jacksonville leaders take notice as governor pushes for end to property taxes Kurt Wenner with Florida TaxWatch explained property taxes are the biggest source of revenue for local governments, funding everything from police to schools. Eliminating them, he warned, could force local governments to raise other taxes to compensate. >>> STREAM ACTION NEWS JAX LIVE <<< 'Replacing $55 billion would require, let's say on the sales tax, it would be more than double,' said Wenner. We asked the governor how local governments, like the City of Jacksonville, which takes in more than half of its revenues from property taxes, could avoid raising other taxes if property taxes were eliminated. In his response, he seemed to walk back his initial call. 'We're going to approach this very thoughtfully, but the reason why we want to do this is to give people relief,' said DeSantis. DeSantis floated some proposals already filed for the legislative session like raising the homestead exemption and freezing property tax increases for seniors. [DOWNLOAD: Free Action News Jax app for alerts as news breaks] 'You have senior citizens that are on fixed incomes, and they're now being told their home that they bought for $200,000 30 years ago is now worth $1.3 million, and they gotta pay up and pay more taxes. And the homestead exemption is too weak to protect people,' said DeSantis. The governor suggested any reductions in tax revenue could be offset by his plan to roll out government efficiency programs at the state and local levels, similar to the one in place at the federal level. It's an option already being eyed by city leaders like Council Finance Chair Ron Salem (R-Group 2 At-Large). 'I think personnel obviously is a big expense in our budget, and how many do we have in what areas, and can we do more with less, I think are discussions that are very appropriate,' said Salem. [SIGN UP: Action News Jax Daily Headlines Newsletter] We asked Salem whether those efforts could be seen over the coming year. 'I think it could be even quicker than that,' Salem replied. There is a bill filed for the upcoming session commissioning a study on the impact of eliminating property taxes, though no formal repeal proposal has been put forward. The session kicks off next Tuesday. Click here to download the free Action News Jax news and weather apps, click here to download the Action News Jax Now app for your smart TV and click here to stream Action News Jax live.
Yahoo
26-02-2025
- Business
- Yahoo
‘A tremendous hit': Jacksonville leaders take notice as governor pushes for end to property taxes
Florida already has no income tax, but Governor Ron DeSantis is currently flirting with the idea of abolishing property taxes as well. Tax watchdogs have argued local governments would stand to lose the most. Property taxes are a vital source of revenue for local governments in Florida, bringing in $55 billion a year according to Florida TaxWatch. >>> STREAM ACTION NEWS JAX LIVE <<< But now Governor DeSantis has come out in support of putting a constitutional amendment on the ballot to abolish property taxes altogether. 'You have to continue to pony up money to the government just for the courtesy of using your own property. We don't tax like that in almost any other instance,' said DeSantis during a Monday press conference. Here in Jacksonville, property taxes on a home valued at $350,000 would cost a homeowner about $6,200 a year. Council Finance Chair Ron Salem (R-Group 2 At-Large) explained those revenues make up more than half of the city's total budget and fund everything from law enforcement to the school district. 'It would be a tremendous hit,' said Salem. Kurt Wenner with Florida TaxWatch explained property taxes have been on the rise. [DOWNLOAD: Free Action News Jax app for alerts as news breaks] He said they've increased 39% over the last three years alone. He noted the only other revenue source even remotely comparable to property tax is sales tax. If property taxes were eliminated, he estimated sales taxes would likely have to more than double to make up the lost revenue, which would disproportionately impact lower-income Floridians. 'We do not have an income tax. Our wealth tax is a property tax. Everything else is on consumption. That tends to be regressive, meaning that people with lower incomes pay a higher percentage of their income on taxes,' said Wenner. 'Replacing the property tax with sales tax would certainly make it more regressive.' But the governor pushed back on the suggestion sales tax would have to be raised. [SIGN UP: Action News Jax Daily Headlines Newsletter] In a post on social media, DeSantis said he would veto any effort to increase the state sales tax and suggested local governments could 'reduce bloat' instead. Salem said he believes more than anything else, the entire point of the debate over property taxes is meant to send a message to local governments to start tightening their purse strings. 'I just think that it's a wake-up call for local government,' said Salem. There are several bills dealing with property taxes already teed up for the upcoming legislative session. Among them are a study on eliminating property taxes, increasing the homestead exemption, and changing how property taxes can be assessed. It's still to be seen if a full elimination proposal will be filed. Click here to download the free Action News Jax news and weather apps, click here to download the Action News Jax Now app for your smart TV and click here to stream Action News Jax live.
