Florida’s State Debt Declines Again This Year
October 24, 2012
Florida will report in December that it has significantly reduced its outstanding debt for the second year in a row, and that continued refinancing of outstanding debt will save more than $1 billion on future interest payments, the state’s top bond finance official said Tuesday.
A second year of lower debt appears to portend a reversal of a long trend. Two years of reductions follow about a decade of increasing debt loads and represent the first year-over-year drops in 20 years.
In a preview of an annual report due later this year, Director of Bond Finance Ben Watkins told Gov. Rick Scott and the Cabinet that the year-end report is likely to say the state reduced its debt by about $1.5 billion this year, following last year’s reduction of debt by $500 million.
The main reason – the state isn’t issuing new debt, primarily in its biggest borrowing program, the Public Education Capital Outlay, or PECO bonding program, because of lower revenue and efforts to be more frugal.
PECO bonding, which funds school construction, relies largely on revenue from utility taxes, known as gross receipts taxes, to pay back bondholders. Revenue from the tax has dropped in the down economy and there hasn’t been any money available for new construction bonding in the most recent year.
Lawmakers have also slowed down funding for land-buying for conservation purposes, another purpose for which the state has in the past borrowed more heavily.
Watkins also said the state has refinanced more than $6 billion in debt over the last three years – nearly a third of the state’s entire debt portfolio – to take advantage of low interest rates, allowing for a reduction in interest from 4.65 percent to 4.33 percent.
When applied to the entire $26 billion state debt portfolio, the reduction on future interest costs is likely to be about $1.1 billion.
“That’s real money by any measure,” Watkins said.
The amount is expected to continue to drop.
“Based on existing borrowing plans, total State debt outstanding is expected to continue to slowly decline as annual debt retirement increases and new debt issuance decreases,” the state Revenue Estimating Conference said in August when it released its long range forecast.
With interest rates at very low levels, refinancing outstanding state debt has been a priority of the state bonding agency, Watkins said. For example, in August Florida announced the state had lowered the interest rate on certain PECO bonds from 4.97 percent to 2.76 percent, with an expected savings of about $85 million.
By David Royse
The News Service of Florida
Fire Departments Respond To Smell Of Smoke At Ernest Ward Middle
October 23, 2012
Area fire departments responded to a report of the smell of smoke Tuesday morning at Ernest Ward Middle School.
The smell was in the area of an electrical closet in the administration building. No specific cause for the smell was found; however, the school and area residents reported electrical surges in the area just prior to the incident.
A small number of students and staff were evacuated from the building as a precaution.
NorthEscambia.com photo, click to enlarge.
State Officials Charge Cantonment Woman With Insurance Fraud
October 23, 2012
A Cantonment woman has been charged with felony insurance fraud for falsely claiming to be in a vehicle involved in an accident.
Catherine Annette Griffin, 54, was arrested on a warrant issued by the Florida Department of Financial Services Division of Insurance Fraud. She was later released from the Escambia County Jail on a $2,500 bond.
Investigators said Griffin claimed to be in a Chevrolet pickup truck backed into by another driver at a convenience store on Williams Ditch Road. Witnesses told investigators that the truck was occupied only by males.
Griffin initially claimed that she was dressed like a man and ran from the scene after the truck was hit because she was scared, according to an arrest affidavit. Griffin claimed to have suffered a neck injury and told investigators that she did not want money, just help for her pain.
When questioned by Division of Insurance Fraud detectives, Griffin told them, “I just don’t want to be in trouble,” the affidavit states.
Escambia Voters Receive Fraudulent Letter Questioning Citizenship
October 23, 2012
At least two Escambia County voters have received a letter questioning their citizenship that appears to be from David Stafford, but the supervisor of elections said the letter is in no way tied to the Escambia County Supervisor of Elections Office.
“We want voters to be aware that this mailing did not come from our office and that we have notified the Florida Department of State and the State Attorney’s office,” Stafford said. “We are committed to ensuring the integrity of elections in Escambia County and protecting the voting rights of our citizens. We will continue to monitor this serious situation and will cooperate fully with the investigating authorities.”
Any voter who receives such a letter is encouraged to retain the envelope and all contents, and notify the elections office at (850) 595-3900 to report it. The fraudulent letter does not include Stafford’s signature and states that voters must respond within 15 days with the appropriate citizenship information. The fraudulent letter in no way impacts a voter’s eligibility, Stafford said.
A copy of one of the fraudulent letters is below, click to enlarge (pdf).
Man Alters Price Tag At Lowes, Gets 10 Years In Prison
October 23, 2012
A Santa Rosa man with 206 prior felony convictions was sentenced to 10 years in state prison for altering a price tag at Lowes.
Prosecutors said Bobby Kevin Williams, 48, went to Lowe’s in Pace and asked for 130 feet of copper wire valued at $465.40 and then covered the priced tag with another one he wrote for $12. Williams then checked out, paying $12.78 for the wire. He was stopped by a Lowe’s loss prevention officer and was arrested by the Santa Rosa County Sheriff’s Office.
He was charged with grand theft and failure to appear and by a Santa Rosa County jury.
Prosecutors said most of the prior 206 convictions on Williams’ record were theft related.
Still Time To Enter NHS Homecoming Parade; Lunch Available Friday
October 23, 2012
The fourth annual Northview High School Homecoming Parade is this Friday, and a lunch will be available prior to the parade.
The parade will line up at 12:30 p.m. and travel from Bratt Elementary School to Northview High. Entries are being accepted now; there is no cost to enter. For a printable entry form, click here. Contact Perry Byars at (850) 327-6681 ext. 248 for more information.
A $6 meal prepared by Archie’s Catering Smokehouse will be available from 10:30 a.m. until noon from the football concession stand consisting of a BBQ pork sandwich, chips, soft drink and dessert. Tickets are available for pre-purchase at the school. All proceeds will benefit the Tommy Weaver Scholarship Fund.
The Northview Chief’s homecoming game will kickoff at 7 p.m. on October 26 against the Vernon Yellow Jackets.
Pictured: A float in the 2011 Northview High Homecoming Parade in Bratt. NorthEscambia.com file photo, click to enlarge.
Looking Good: Century Names First ‘Community Pride Award’ Recepient
October 23, 2012
The Century Chamber of Commerce has created a new program to highlight things taking place in the community. Monthly “Town of Century Community Pride Award” recipients can be any organization, group, business or resident.
The first Town of Century Community Pride Award winner is Ben and Cheryl Boutwell at 1 Hecker Road for the beautification of their property.
“We just want to recognize those in the community that have shown their pride and done good things in our community to make Century an even better place to work and live,” said chamber President Benny Barnes.
Driver Slams Into Cars Parked In Cantonment Driveway
October 23, 2012
There were no injuries reported when a driver slammed into two cars parked in a Cantonment driveway Monday night.
The accident happened about 9:30 p.m. when a driver apparently ran through a stop sign at County Road 97, crossed over Muscogee Road and ran into a driveway in the 1100 block of Muscogee Road.
The accident remains under investigation by the Florida Highway Patrol. Further details have not been released. Escambia Count EMS and the Cantonment Station of Escambia Fire Rescue also responded to the crash.
Pictured: A driver hit two vehicles parted in a Cantonment driveway Monday night. NorthEscambia.com photos by Kristi Smith, click to enlarge.
Man Gets 12 Years For Trying To Run Over Deputy
October 23, 2012
An Escambia County man was convicted of aggravated assault on a law enforcement officer and resisting an officer with violence in connection with a September 2011 incident
Brendan Carter was seq qntenced by Judge Scott Duncan to 12 years of prison with a three year minimum mandatory.
Escambia County Sheriff’s Office gang investigators were attempting to serve an arrest warrant on Carter when he attempted to escape in a vehicle and run over Inv. David Brown. Brown was forced to fire multiple shots into the car in an attempt to stop Carter. Carter wrecked his vehicle into another deputy’s vehicle and was apprehend at the scene.
Carter is currently serving a five year prison sentence on unrelated charges. His 12-year sentence will run consecutively.
Governor, Cattle Producers Urge EPA To Waive Ethanol Requirement
October 23, 2012
Gov. Rick Scott joined several other governors from both parties this week in asking the federal government to suspend the requirement for putting a certain amount of ethanol into America’s gas tanks, saying it’s causing a shortage of cattle feed for Florida ranchers.
A public comment period on the proposal to temporarily suspend the Renewable Fuel Standard, mandating a certain amount of ethanol in the nation’s gas supply, ended earlier this month. The Obama Administration has until Nov. 13 to decide on the question.
The standard is aimed at reducing pollution and the nation’s dependence on crude oil, as well as helping the ethanol industry boost its own production.
But Scott on Tuesday wrote to U.S. Environmental Protection Administrator Lisa Jackson voicing support for waiving the requirement, following letters sent by governors of several other states going back to August.
Ethanol producers use about 40 percent of the nation’s corn, and the crop has been severely limited because of this summer’s drought.
“The use of corn, a major source of cattle feed, as a base for ethanol production decreases its availability and increases its price to the detriment of the cattle industry,” Scott wrote. “…Due to the extreme drought conditions, the short supply of corn and an increase in feed prices, Florida’s cattlemen are seeing a significant decrease in the price of feeder cattle, which has had a negative economic impact of $80 million to the industry this year.”
The beef cow industry in Florida is worth more than $4 billion – the state’s ranches have more than a million head of beef cattle.
According to USDA reports, corn prices have increased about 60 percent since June 15.
Governors in North Carolina, Arkansas, Maryland and Delaware have all previously called for a suspension of the fuel standard requirement. All four of those states are big poultry producers.
The Obama Administration has pushed for more renewable energy production and has previously rejected requests to suspend the requirement. The president has said he wants to reduce consumption of foreign oil – and ethanol backers note that the industry produces more than one-and-a-half times the amount of volume than would be produced by approving the Keystone Pipeline to increase the use of Canadian oil by Americans.
The renewable fuels industry opposes the waiver proposal, releasing a statement last week urging the EPA to reject the governors’ requests.
The ethanol industry is already reducing production significantly and said that the impact of a waiver of the requirement on the price of corn would be “trivial.”
“Studies estimating the impact of a potential RFS waiver on corn prices show that waiving the requirements in 2013 might reduce corn prices by as little as $0.04 per bushel, or 0.5 percent,” Bob Dinneen, president of the Renewable Fuels Association, wrote in a letter to the EPA on Oct. 11. “Further, prices for other feed key ingredients (e.g., distillers grains) may increase in response to a waiver, meaning net feed costs could be unchanged or may actually increase.”
The cattle industry has also filed comments with the EPA on the issue.
“We are looking at the smallest cow herd since 1952, and if input costs continue to increase, we do not expect this trend to turn around in the next several years,” the National Cattlemen’s Beef Association said last week.
By The News Service of Florida