Sansom: Florida faces economic woes
BY LISA NEWELL Gulf Breeze News lisa@gulfbreezenews.com

Ray Sansom, the incoming speaker of the Florida House of Representatives, was the guest speaker at the Gulf Breeze Area Chamber of Commerce January Breakfast.

Sansom, brother of Gulf Breeze resident Randy Sansom, represents district 4 in parts of Santa Rosa and Okaloosa counties.

Sansom urged those present to vote for Gov. Charlie Crist's plan to double to homestead exemption from $25,000 to $50,000 because "tax cuts always stimulate the economy."

He told the assembly that Florida's economic woes mirror those of California, which had an economic slowdown fed by a burst in the housing bubble. The slowdown in California led to the recall of then- Governor Gray Davis.

In many ways, including the burst of the housing bubble, Florida is facing the same crisis, Sansom said.

Florida is accustomed to having a growing economy, and now that the economy is contracting, legislators are trying to cut what they can out of the budget, but have little flexibility because of constitutional mandates. He said Florida is facing a $2 billion shortfall in the 2008-09 budget.

California had some unexpected events in the form of wildfires and lawsuits, and Florida had hurricanes that interrupted the cycle of economic growth.

"Eighty percent of more of Florida's economic activity is located within three miles of the Gulf of ocean," Sansom said, crippling the state's economic engine.

Sansom defined Florida's challenges as:

Class size amendment

Too much bureaucracy holding up building permits

Road congestion

Lack of affordable housing

Amendments to the state constitution.

"The constitution is for sale in the state of Florida," Sansom said, adding that it was manipulated for commercial purposes when the "pregnant pig" amendment passed, effectively shutting down the proponent's competition. Sansom told the chamber that Florida's constitution is being changed faster than the constitutions of any other state in the nation.

Now, to meet the challenges ahead, Sansom said the legislature will have to deal with the $2 billion shortfall, avoid using non-recurring monies to pay recurring budget items, refrain from issuing additional bonds as a funding method and explore innovative ways to stimulate the economy.

He pointed to the tax cut plan on the ballot Jan. 29 as one initiative to jump start Florida's economy.

"For example, the Back to School sales tax holiday stimulates people to buy more and generate more sales tax," filling the state's coffers by giving people an incentive to shop.

He said the average worker must toil six months of the year just to pay their taxes.

"We're taxed to death," Sansom said.

Part of the plan to stimulate the economy involves creating infrastructure such as roads, housing, schools, ports and an alternative water supply. He also pledged to keep the space industry and other supplemental research institutes in Florida and improving international tourism.

Another focus for the legislature will be developing Florida's educational system, particularly community colleges and career development.

"Fifty percent of high school graduates never go to college," Sansom said.