MEMORANDUM

Date:
 September 27, 2002
To: Interested Media
From: Elizabeth E. Hirst, Press Secretary
Governor's Press Office
RE: Governor's Council of Economic Advisors
Quarterly Meeting, St. Petersburg, Florida

Please see the following statement regarding today's Council of Economic Advisors meeting.

Governor Jeb Bush today thanked the members of the Council of Economic Advisors (CEA) for the time and attention they have given the fiscal recovery of Florida post 9/11.

"Our state is continuing to rebound from the effects of September 11. This Council has provided me with expert leadership and advice in the area of fiscal responsibility," said Governor Bush. "As a result, Florida's business climate continues to improve through sound fiscal management. We have not raised taxes and we continue to lead in job creation among the most populous states." According to discussion held today by the CEA Florida has demonstrated significant resilience in adjusting successfully to a number of external shocks over the past year.

Among those important external factors are:
  • Recessionary conditions in the U.S. that began in late 2000, and
    continued through the end 2001.
  • A slow and tepid U.S. economic recovery due to the tragic events and
    continuing aftershocks since then. Furthermore, corporate reporting problems have hurt investor confidence as reflected in the equity markets.
  • Florida will clearly benefit from increased defense and homeland
    security spending due to the state's military installations, defense contractors and model homeland security efforts.

    "Florida's positive performance under adversity is due in great measure to significant improvements in our business climate under the leadership of Gov. Jeb Bush," said Dr. Tony Villamil, Council chair. "Lower taxes, fiscal responsibility, improvements in inter-modal transportation linked to economic development, enhanced workforce skills and improving educational outcomes have shielded Floridians from the noticeable jobs and income losses we have seen at the national level and in key states."

The Council highlighted the following accomplishments:
  • In spite of a still adverse external economic environment as the
    state finishes the third quarter of this year, Florida continues to create payroll jobs and leads in this growth among the ten most populous states. Job growth, while still below the pre U.S. recessionary peak, is led by expansion in knowledge-based services such as business, health-care and educational services. Construction employment is also rising, fueled by population growth and low interest rates. People from other states and the world want to make their home in Florida. The question is why has Florida demonstrated such resilience in spite of an adverse external environment that continues up to the present?
  • Independent and non-partisan organizations such as the Small
    Business Committee, the CATO Institute and Cyber States have recently ranked Florida as one of the best business climates in the nation. Specifically the independent and globally recognized CATO Institute rated Governor Bush's performance as an "A" - with only one other state governor receiving such recognition. In essence, Florida is strongly in the lead among site selectors for new corporate relocations and expansion activities that create jobs and higher-than-average wages.
  • Florida's economic stimulus package, implemented a few months after
    the tragic events under the Governor's leadership, has also served Floridians well. The Governor convened Florida's CEA right after 9-11 and took the Council's best advice and forcefully crafted and implemented with the Legislature key measures to cushion the effects of 9-11. The positive results are now evident.
  • Florida's key tourism sector continues its impressive rebound and
    the state's knowledge-based services industries are expanding at a moderate pace.