Winning In Today's Environment - Change The Only Constant | By Irvin R. Heath, Esq.

Winning in today’s environment-Change the only constant

By
Irvin R. Heath, Esq.
President, HCR, LLC

As we know the downward spiral of the global economy has caused dramatic and negative economic and financial changes across the entire United States and is forecast to continue into the foreseeable future. The State of Florida’s finances seem to have been torn apart by the strong winds of a financial hurricane that has no name. The economic effects of these hurricane like changes have impacted all of us both personally and professionally.

I am sure the following hurricane like facts are not a secret but are the result of the negative downward pressures we see which resulted in the Inland Protection Trust Fund (IPTF) and others being swept by the legislators. This fund was specially set up for the purpose of remediating petroleum contamination at sites in Florida. However, due to the extreme financial pressure exerted upon the state and the need for other program funding over $200.0 million was taken from the IPTF and another $10.0 million in debt was added to service $90.0 million in bond funding. There were many factors that contributed to the raiding of this trust and those factors continue to negatively impact revenues for Florida and present the real threat that this trust may be swept again in the near future.

These negative changes include the continuing growth of un-employment in Florida that hovers around 10% even when you exclude those that have stopped seeking employment. These un-employment numbers resulted in not just lost jobs but an increase in foreclosures that placed Florida at one time among the top three states in foreclosures with a rate of 3.1% of all homes in foreclosure. These and other factors such as Florida for the first time seeing almost 60,000 people leave each month rather than coming into the state result’s in the further erosion of revenues that would help the state and protect the IPTF. The Florida Tax Watch recently reported that the General Revenue Estimating Conference reported that revenues were down $147.0 million this year and they were already projecting another $44.0 million next year. They are also forecasting that the fiscal year 2009-2010 will mark the fourth consecutive year that Florida’s General Revenue Collections will decrease from one year to the next and that this is remarkable because this revenue drop from year to year had never previously happened in Florida before this four year stretch.

Further, while we can understand the need for funding education, health care, and other state programs we must also come together as both marketers and environmental support contractors to spread the word and protect the waters and citizens of Florida. Although change is the only constant in life and we know this economic cycle will also end our joint efforts and increased communications with the legislators is a critical key to our mutual success. This is true because there are many negative and unknown individual hardships that occur when the IPTF is swept or limited funding results in a start and stop approach for program funding. There are also many businesses that must close or lay off staff, clean-up activities stop, real estate transactions are delayed, business financial demands are increased as program costs are incurred, and equipment sits idle without needed maintenance and is left to rust due in the open air exposure of heat and rain.

To counter the current changes these economic challenges impose upon us we are required to ask ourselves what should or could I do differently in order to prevent what has occurred before from happening again. We must understand that we can both influence and determine what changes occur and together we must take action. We have all heard the story of how other states reacted to this economic hurricane and actions we hope Florida will not be forced to consider. There was California that issued IOU’s to meet future debts, Arizona plans to sell and lease back state buildings to generate $75.0 million in needed cash, New Jersey is looking to lease its turnpike toll roads and others are doing whatever is necessary to survive the current challenges. In addition, we also know that even some Florida high schools are trying to grow revenues by leasing out signage on their school properties and athletic jerseys.

We have together developed information and implemented several programs to get the message out in order to avoid having the IPTF swept again this year. Remember, together we can positively impact this decision and manage the one constant in our lives-change. We can do this when we accept the responsibility to Adopt a Legislator and contact them to share our message with our goal of protecting the waters and citizens of Florida and that message is -Do not sweep the IPTF. We must act now! Feel free to contact me for additional information.