The Fine Print

Out of the house and into a mansion?...And other Tallahassee bubble news

Inside the Tallahassee bubble news....

Richard Corcoran's out of the house and into a mansion?....Make of this what you will, but during the middle of this year's session House Speaker Richard Corcoran sold his Tallahassee house.

Property records show that Corcoran and his wife Anne Corcoran sold their 2,400 square house near Capital City Country Club on March 15 of this year. One of the buyers, Scott Shamp, was recently named interim dean for the Florida State College of Fine Arts.

The Corcorans sold their home for $363,800 after having bought it September 2014 for $325,000. They bought the home at the time from John Sebree, who had been a senior vice president for the Florida Association of Realtors and a lobbyist, but Sebree had left the state to become CEO for the Missouri Realtors.

Sebree first bought the house in 2003 and paid $329,900 - which was before the Great Recession and a downturn in property values.

When asked about it, Corcoran said he spent the rest of session renting a house near downtown that is also near homes occupied by other high-ranking House Republicans including Rep. Jose Oliva. He said he has a lease that will get him through the next year and a half.

Worth pondering: By selling his house now, Corcoran doesn't have to worry about it after the 2018 session when he may - or may not - be pursuing a bid for governor. Corcoran is being forced to leave the Florida Legislature next year due to term limits so he would have needed to do something with the house anyway. Of course one of the perks of becoming governor is that the winner gets to move into a mansion located just up the road from the state Capitol.

Bill watching and the governor's options...In most years, Memorial Day weekend is sort of the end of the legislative season. By this time school is about to end around the state, and the governor has usually acted on a new state budget.

But as we have seen this isn't an ordinary year as Gov. Rick Scott and Republicans continue their all out public feud over spending and legislative priorities (or as Corcoran puts it - a fight for the soul of the party.)

This leaves things in a bit of dizzying state that may be a bit hard to follow, but this is an attempt to walk through it all...

Even though the new fiscal year starts July 1, the Legislature has yet to deliver the $82.4 billion appropriations act to Scott. Or many of the other significant bills (including HB 7069) that actually boost state spending to more than $83 billion for the coming year. (The list does not include the Lake Okeechobee bill which Scott has already signed.)

Florida's Constitution requires that once a bill is officially presented (which means it's been enrolled and the bill jacket has been signed by the two presiding officers, the House clerk and the Senate secretary and then delivered) the governor has 15 days to veto the bill, sign the bill or allow the bill to become law without his signature.

Since Scott became governor in 2011 the longest the Legislature waited to deliver the budget after passing it was in 2012 when it took 28 days. But that was a redistricting year so legislators went into session early. They actually delivered it in early April. So far this year it's been 16 days.

An important thing to remember: There is nothing in law that dictates when the Legislature must deliver a bill to the governor.

Usually there is some level of coordination where legislative staff check with the governor's office to find out if  his staff is ready to act. Sometimes this is also done to accommodate public bill signings to drum up publicity.

Normally there isn't a lot of intrigue here, but legislators passed a budget that ripped to shreds Scott's legislative agenda and ignored his requests. Scott has continued after session to tongue-lash his fellow Republicans for taking actions _ including their refusal to set aside money for business incentives and their decision to slash funding for the state's tourism marketing agency _that the governor says will cost jobs. He has also chided the GOP-controlled Legislature for crafting a budget largely in secret.

Scott has publicly thrown out the possibility he may veto the entire budget to register his displeasure. He could also just use his veto pen to wipe out individual spending items in the state budget.

Meanwhile, school district officials, citing the relative low per-pupil increase contained in this year's budget, have called on Scott to veto the main appropriation that goes to public schools.

If Scott vetoes the budget - or limits it to just the schools line item (known officially as the Florida Education Finance Program, or FEFP and which totals nearly $8 billion in state money) it would trigger the need for a special session.

That's why there's a level of anxiety building about the timeline and the governor's possible actions because time is running out as summer bears down. There's also a threat of a government shutdown if things are unresolved by July 1, although it would be likely that Scott would declare an emergency and use his emergency powers to authorize state spending.

Another layer of complexity: Legislators could give Scott the budget very soon - but they could hold back on other key bills including HB 7069 - the education train that has drawn fierce criticism and support across the education spectrum. That's important because that bill includes more than $400 million - including money for the contentious Schools of Hope charter school proposal and money for teacher bonuses. (Another important thing to remember - nothing requires legislators to place all spending in one bill.)

So you have a scenario where legislators could give the main budget today - but then wait until later to give the education bill.

Legislators could argue they can't spend any of the money tied to other bills if Scott ordered them into a special session. Legislators could also play their own waiting game and hold back the budget altogether in an effort to run out the clock. Some legal experts have argued that lawmakers must deliver bills by the effective date (the date a bill becomes law if signed by governor), but again this is uncharted legal territory and hasn't really been tested in a court.

Of course nothing stops the governor from saying now - I will veto the budget, or I will veto the schools portion - and issuing a order that tells legislators when they are returning to Tallahassee.

The risk is that the governor could suffer a veto override - which could be an embarrassment for Scott and a sign that he is lame duck with more than a year left in his term.

But Scott has a tad more leverage than usual because as noted legislators broke up some key items into several bills. He's already signed the Lake O bill - which is a top priority for Senate President Joe Negron.

Scott could also sign Negron's higher education overhaul, the separate bill that authorized state worker pay raises (a top priority for Sen. Jack Latvala) and then rally Democrats to his side by vetoing HB 7069, which is a top priority for Corcoran but which has been roundly criticized by Democrats, the state's teacher union and school superintendents. (One last scenario is that Scott could just veto the money included in HB 7069 and leave the bill intact.)

A hidden veto-proof budget item?...Much has been made this year by legislative leaders about how transparent the budget process was - and how they would take steps to make sure individual spending items were listed in the main appropriations act so that everyone would know that they were there and that the governor would have the opportunity to veto them.

Well....

That's not what happened with one of the top priorities of Negron.

The Legislature passed a sweeping higher education bill (SB 374) that calls for the creation of a new programs designed to help universities hire more top-flight faculty in an effort to boost their national reputations. There's also an effort to boost the graduate and professional schools at Florida's public universities as well.

In all legislators agreed to put aside more than $120 million for these two programs.

But despite it being a new program the funding isn't broken out anywhere - nor is there a separate listing spelling out how much each university will receive. Instead all that money got included in the giant $4.06 billion main line item for universities.

If you want to find out how much each school got, it's included in a spreadsheet drawn by Senate staff.

When asked if this violated new transparency budget rules, Katie Betta, a spokeswoman for Negron said: "These are statewide programs for the university system, not local funding initiatives."

Of course by doing it this way the only way Scott is left with limited options: He could veto the entire university budget line item, which would also trigger the need for a special session. Or he could veto the stand-alone bill, meaning there is no authorization for the increased spending. Or lastly - Scott could challenge the spending on the two programs by arguing there's nothing that legally allows the universities to access the money.

Even though the Senate staff has prepared a worksheet that details how it works - so-called budget "work papers" are not legally binding according to the Florida Supreme Court.

Just add this to ongoing intrigue at the state Capitol at the weeks ahead.

 

The power and the swagger: Richard Corcoran and his fight for "soul of the party."

Separated by a couple of hundred yards, a scene played out on Friday night that in a brief few moments captured the essence of the entire 2017 session of the Florida Legislature.

At one end Senate President Joe Negron made his case for why Republican Gov. Rick Scott should look favorably on the new state budget crafted by the GOP-controlled Legislature (and which will be voted on this Monday.)

Negron's logic was even though Scott didn't get what he want the Senate was always on his side. Senators backed Scott's request for money for business incentives and to fully fund Visit Florida, the state's tourism marketing agency. They just couldn't get the House to go along.

"On the Senate side the track record speaks for itself ,'' Negron told reporters. 'We've been a strong ally in the Senate of the governor and his priorities.'

Contrast that to  House Speaker Richard Corcoran who took a much more confrontational position toward the governor. (A governor by the way who has criss-crossed the state blasting GOP legislators and even running ads critical of legislators.)

'There's a war going on for the soul of the party,'' Corcoran said. "Are we going to be who we say we are?"

To Corcoran this "war" means opposing business incentives, or "corporate welfare' as he called them in the past. And in his brief session with reporters he also mentioned politicians who campaign saying they want to crack down on illegal immigration and are opposed to "the liberal socialistic health care policy called Obamacare" but then change their position when they get into office.

Without using his name directly, it was clear that Corcoran was taking aim at Scott, who flipped on Medicaid expansion (part of Obamacare) in his run-up to his re-election campaign and who ran in 2010 promising to take a hard line against immigration but then in 2014 signed a bill that extended in-tuition to the children of undocumented immigrants. (Corcoran voted against the bill even though it was strongly supported by then-House Speaker Will Weatherford.)

"I think what we need to do is elect leaders who say what they mean and mean what they say,'' said Corcoran, who maintains he has yet to make up his mind on whether he plans to run for governor next year.

Corcoran also predicted to reporters that he thought the House and Senate had the votes to hand Scott his first veto override if the governor does indeed veto the entire budget. (This requires a two-thirds vote of both chambers, which means Democrats will have to go along.)

His exchange with reporters showed that Corcoran - who talked before session of turning on the lights and finding the "cockroaches" that the Scott administration had allowed to flourish during six years in office - finishing the 60-day session with the same provocative, confrontational stance he had before it started.

Given everything that has happened over the last two months of the session it's not really surprising.

Along the way he pushed back against anyone - whether they were in media, his own party, or whomever - who challenged his statements or positions. Sometimes he did it in a lawyerly fashion (such as complaints about transparency weren't valid because the media focused on just one part and not the totality of the changes he pushed.)

But other times it was through sheer force.

He used the budget negotiations (largely behind closed doors) and Negron's own top priority to create a reservoir south of Lake Okeechobee to get the Senate to take up a proposed constitutional amendment that would expand Florida's homestead exemption. Corcoran was able to get the Senate to move quickly on this proposal even though it languished most of the session and was opposed by Sen. Jack Latvala, the Senate budget chief.

Corcoran also used his power in less visible, but still effective fashion (like shutting down session for long stretches in the final days when the pressure builds to act.)  It has been argued that his crackdown on lobbyists before session and the requirements about increased disclosure were more about giving him the speaker a clearer idea of where lobbyists may be taking aim at his agenda.

And on Day 60 Corcoran got the Senate to sign off on a nearly 300-page overhaul of education policy (some of it never seen in public before) that will also be taken up Monday on the final day of session. Corcoran used the budget conference process to place all this policy into two "conforming" bills (bills that change state law to conform to the budget) even though some elements of the legislation weren't ever included in the budget conference. He also got policy changes for Visit Florida included in a bill that initially just dealt with a "displaced homemakers" program.

Corcoran wasn't apologetic for the move, saying instead that the bill (HB 7069) and which includes his "Schools of Hope" proposal to shift students in low-performing schools over to charter schools was some of the "boldest most transformational" change ever and would even rival former Gov. Jeb Bush's A+ plan that put in place the state's entire school grading system.

The setbacks for Corcoran were few: His push for major ethics reform and judicial term limits were never taken seriously in the Senate. There's an argument that despite his pre-session warnings to avoid them that there were plenty of special interest fights . Witness the drawn-out battle over the so-called "Whiskey and Wheaties bill" - which would allow grocery stores to eventually sell hard liquor - as one example. (Corcoran, who appeared to take a strong interest in the measure, maintains his backing of that bill was about free-market principles.)

But of course the question is whether Corcoran's victory dance is premature.

Because at this point it's unclear what Scott will do and whether he will use his own considerable power against the House speaker.

This past week Corcoran and his top allies let it be known that they had offered Scott a deal where they would have relented in a couple of places and funded a couple of his priorities: Visit Florida as well as money for repairs to the Herbert Hoover dike surrounding Lake Okeechobee.

That Scott's people rejected the deal isn't that hard to explain. As explained by those close to Scott, the governor didn't deliver a long list of demands to state legislators this year so it shouldn't be too hard to get the handful of things he asked for.

Of course there remains the chance there will be a few more chess moves before ultimately the Corcoran vs. Scott drama plays itself out.

Corcoran and Negron could refuse to immediately deliver the budget to Scott, meaning that the governor - and the Legislature - would have less time to act as the state moves closer to the end of the fiscal year on June 30. There's nothing in state law that mandates when the Legislature has to deliver the budget to Scott's desk. So theoretically the Legislature could hand it over a week ahead of time.

Yet in one way the two legislative leaders have given Scott an easier path to a budget veto.

The main general appropriations act is $82.4 billion, but it doesn't include many key elements. Legislators have placed more than $700 million worth of spending for Negron's Lake Okeechobee plan, Schools of Hope, Visit Florida and the state employee pay raise OUTSIDE the main budget bill.

This means Scott can sign some of the bills important to the Senate (where it may be easier to sustain a veto) while at the same time vetoing the budget and any other bills important to the House.

Of course if Scott does veto the entire budget (a rare occurrence in recent Florida history) then we get to watch Round 2 between the speaker and the governor.

And the war for the "soul of the party" will rage on.