As Gov. Rick Scott jetted off to France on Friday, he hoped to showcase Florida's aviation and aerospace industries -- and, of course, bring back some new jobs.
But before the trade mission even started, Scott dropped a couple of unrelated bombshells. He announced Thursday that the Internet retailer Amazon could create 3,000 jobs in the state. And Friday morning, he said federal officials had approved a long-debated overhaul of Florida's Medicaid system.
Both announcements could be considered victories for Scott, though he immediately started catching grief about how Amazon building in the state would lead to the company's Florida customers starting to have to pay sales taxes on their purchases.
Regardless of that grief, 3,000 jobs are, well, 3,000 jobs. And for a governor who has pinned much of his re-election bid on creating jobs, 3,000 is a big number.
The Medicaid overhaul, which involves moving beneficiaries statewide into HMOs and other managed-care plans, has long been a priority of Scott and Republican legislative leaders. It remains to be seen whether voters will attach any importance to the overhaul, but Scott, who made his riches in the health-care industry, sees managed care as the way to improve the massive Medicaid program.
AMAZON BACK FROM THE DEAD:
A month ago, it appeared that Florida's hopes of landing at least one Amazon warehouse had been dashed because of disagreement about when the retailer would have to start collecting state sales taxes.
Taxation of Internet sales is a complicated and controversial issue. But the bottom line is that Amazon doesn't currently collect sales taxes from Florida customers but likely would have to do so if it had a physical presence in the state, such as a warehouse.
That's why Scott's announcement Thursday that a deal was in the works was a surprise. And it quickly became apparent that community leaders in various parts of Florida would welcome the jobs and millions of dollars in construction spending that Amazon could deliver.
Hillsborough County commissioners next week are set to discuss providing local incentives for an Amazon facility, while economic development leaders across the Interstate 4 corridor and in Northeast Florida also could be developing pitches.
The issue is still a work in progress between Amazon and the state's economic-development arm, Enterprise Florida, which will work out the final details for any potential incentives and selection of possible distribution-warehouse locations.
But optimism has at least returned to Winter Haven, which hopes this week's developments will revive previous discussions about building a warehouse near where a new CSX rail terminal is going up.
"We happen to have this piece of land here that is ideal for intermodal, if that plays for Amazon, I think that would be ideal for them," said Winter Haven Economic Development Council President Ingram Leedy. "But I think if a dart hit in Central Florida, its ripple across all our communities would be great for all of us."
Where Amazon builds depends upon economic incentives, but also the e-commerce giant's supply-chain needs. That could mean locating in close proximity to major highways, rail lines and ports.
Ty Rogers, a spokesman for Amazon, responded in an email Friday that the company had no comment regarding potential locations or details beyond the Thursday release from the governor's office. That release outlined plans to create more than 3,000 jobs and spend more than $300 million in investments in Florida.
Leedy said Amazon's new same-day delivery strategy is driving the need to strategically locate its regional hubs, which should be encouraging for both the Jacksonville region and the I-4 corridor.
The Winter Haven plans were halted when the state rebuffed efforts by Seattle-based Amazon to delay collection of state sales taxes. The release from Scott's office on Thursday said Amazon would begin collecting Florida sales tax "at such time as it is required under current Florida law."
The Orlando Sentinel reported that the company intends to build a pair of 1-million-square-foot "fulfillment centers" that would include half the envisioned 3,000 jobs.
One of the centers could be located along Interstate 75 in Ruskin, on the east side of Tampa Bay.
The Hillsborough County Commission will be asked to approve a package for Amazon next Wednesday that would include $225,000 tied to the state Qualified Target Industries Tax Refund Program. Also, the commission would agree to hold a public hearing in July on providing $6.4 million in property-tax exemptions over seven years.
Amazon would be required to create 375 new, higher-wage jobs in return for the $225,000 from Hillsborough's Countywide and Unincorporated Area Economic Development Activity Funds, while the property tax exemptions would require the company to make a $200 million capital investment and create at least 75 well-paying jobs.
MAJOR CHANGES COMING TO MEDICAID:
Republican lawmakers have routinely vilified Medicaid in recent years because of its increasing costs and what they have described as lackluster care.
But with the announcement Friday that the Obama administration had signed off on moving almost all Medicaid beneficiaries into managed-care plans, Republicans will have the opportunity to see whether their solution for fixing Medicaid will work.
Scott and the Republican-controlled Legislature approved the controversial change in 2011, and it took nearly two years to finalize the details of what is known as a "waiver" with the federal Centers for Medicare and Medicaid Services. Scott touted the approval as a way to improve care.
Florida is leading the nation in improving cost, quality and access in the Medicaid program,'' Scott said in a prepared statement. "CMS' final approval of our Medicaid managed-care waiver is a huge win for Florida families because it will improve the coordination of care throughout the Medicaid system. Health-care providers can now more effectively manage chronic conditions and work with families to provide preventative treatments."
Florida CHAIN, a patient-advocacy group that has been among the most-vocal critics of the change, said the federal government included safeguards in its approval but that the managed-care program will have to be watched closely. It pointed, in part, to controversies about a Medicaid managed-care pilot program that began in 2006 and 2007 in Broward, Duval, Clay, Baker and Nassau counties.
Despite these federal safeguards, the focus now shifts to the state and its efforts to implement this program that will affect access to care for millions of patients in all 67 counties,'' a Florida CHAIN statement said. "The countless reports of disrupted, delayed and denied care streaming in from the original five counties are still very fresh in the minds of all stakeholders."
HILL BRINGS CONSERVATIVE MESSAGE TO TALLAHASSEE:
Count Mike Hill among the people who like the direction Scott and Republican legislative leaders are moving the state. He wants to reduce the size of government, lower taxes and scale back regulations.
And after winning a special election Tuesday to replace the late Rep. Clay Ford in a Panhandle district, Hill will be able to show his support on the House floor.
Hill, a Pensacola insurance agent, easily defeated Democrat Jeremy Lau in the special election in House District 2, which includes voters in Escambia and Santa Rosa counties. When he takes his seat, Hill will become the only black Republican in the Legislature.
But Hill attributed his win to conservative views that he shares with voters in the GOP-dominated district.
"It's simply a message that resonates in this conservative part of Florida,'' Hill said.
STORY OF THE WEEK: The federal government gave final approval to a proposal to require that Medicaid beneficiaries statewide enroll in managed-care plans, an idea that Gov. Rick Scott and Republican lawmakers have pursued for two years.
QUOTE OF THE WEEK: "Well, three things are certain in Panhandle politics: The sun rises in the east, it sets in the west, and the most conservative candidate wins." -- Rep. Matt Gaetz, R-Fort Walton Beach, in discussing his planned 2016 Senate bid.
