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Local governments got access to some of your tax dollars invested in a troubled state fund today, but not all of their investments. The bad news is that local governments may not have access to the rest of the investments for months. Here is our raw interviews with Hal Wilson, CFO of Jefferson County Schools, and Tara Klimek, Spokesman for CFO Alex Sink.

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Charlie Crist was almost in tears as he bid farewell to George Lemieux, his Chief of Staff and architect of his campaign. Fear not, Mr. Lemieux will join the private sector as a lawyer where he will have enormous influence on what happens in the state.  Deputy Chief of Staff Eric Eikenberg takes over in January.

Hear it here: Crist Chief of Staff Changes

Florida Democrats have lost the latest legal battle against the national party.  A Federal Judge has ruled against U.S. Senator Bill Nelson in a lawsuit filed against the national Democratic leadership. But as Chris Casquejo tells us, state Democrats are still trying to recruit delegates.

Hear it here: Democratic Primary Blues

Florida Democrats may have lost a court fight to keep their delegates, but they aren’t letting a disagreement with the national party slow them down. They’re using the internet to recruit all 210 delegates anyway.  Democratic National Committee member Jon Ausman believes Florida will get a say in the nomination before the battle is over.

“I’m convinced that we can talk to the other states to allow Florida, along with Michigan, to be represented at the national convention,” he said.

National rules allow 4 states to hold primaries or caucuses before February 4th.  Florida and Michigan are not among them.  Democrat Laura Jessup isn’t letting the party fight stop her from casting a ballot in January.

“Because when it comes to the end and I vote, I know I’ll vote for who I want to vote for,” Jessup said,  “I don’t care about the rest of all that.”

All the major Democrats running for President signed pledges not to campaign here in Florida, a move that doesn’t sit well with many voters.

Christopher Lair has not decided whether to vote Democrat or Republican.

“Florida is one of the most densely populated states in all of the United States,” Lair said.  “I’d expect the Florida voter to have a little more weight.”

Democrats aren’t the only ones being penalized.  The GOP is losing half its delegates over the early primary date.

The Democrats will hold their nominating convention in Denver in August.

Nearly 32,000 Florida college students are getting hit with a budget double whammy.  The state is cutting funding to some Bright Futures’ scholars, giving them $225 a semester instead of the $300 they are getting now.  Tuition is also going up 5 percent at the state’s 11 public institutions in January.

“I came up here thinking that college, with my extra Bright Futures money, I’d be able to kind of walk around a little bit easier without having to get a job,” said Lucas Kerr, an FSU student from Tampa.  “But without it, I’m going to have to start looking for a job.”

The scholarship reduction is saving the state about $2.39 million.

The Children and Youth Cabinet is figuring out what issues to focus on in the upcoming legislative session.  Florida lawmakers created the youth cabinet earlier this year.  It is made up of several state agency department leaders, like the Surgeon General and the secretary of the Department of Children and Families, to name two.  The state is in a budget crunch, and lawmakers realize that funding for children’s programs might be tight.  But some say it needs to be a priority.

“These are investments that pay off tremendously in the long run,” said Rep. Lorranne Ausley, a Tallahassee Democrat.  “So particularly in a tight budget year, this is the place where we ought to be investing.  We get federal dollars for many of these programs.”

This was the second meeting of the Children and Youth Cabinet. 

Florida’s Fish and Wildlife Conservation Commission is deciding whether to change the classification of manatees from endangered to threatened.  Manatees have been on the state endangered list since 1979. This year’s annual census recorded about 2,800 of the sea cows in Florida water, up from around 1,300 counted in first survey in 1991.

“I think we need to protect these gentle creatures,” said Gov. Charlie Crist. “I’ve consistently felt that way.  I was just mentioning that when I was in the state Senate, I introduced a bill to have prop guards to protect them from the cuts they get that kind of break your heart.  Not kind of, they do break your heart.”

A reclassification would not change the protection enjoyed by the species, and the manatee would continue to have federal endangered status.

Who can walk where is becoming a volatile issue on large stretches of the beaches in the Florida Panhandle. Hit by storms that shrunk beach fronts, wealthy homeowners have taken to posting dozens of no trespassing signs and calling police when people sunbathe on what they believe is their sand. As Mike Vasilinda tells us, the solution will likely come in court challenges.

Hear it here: Beach Battle Brewing

The tracks of man and animal have be imprinted on Florida’s coastline for centuries, but as storms have shrunk beach areas, some homeowners have decided what’s left is theirs. Dueling no trespassing signs are sprouting up along miles of beach front in the panhandle…and more are coming. Rod Cooper’s condo has the signs on his beach.

“I like the idea that I paid for the use of a beach that not everybody can use,” Cooper said.

If the property owners prevail, tourists could be corralled.

If one homeowner decides to put up a sign and another homeowner puts up one too, it would mean that some public access areas could be just a hundred feet wide.

An Atlanta tourist was arrested in July. Activists say it’s like killing the golden goose.

“In Walton county particularly we don’t have any industry except tourism,” Jack Abbit said. “That’s our biggest draw. And one of the reasons they come here is for our beautiful beaches.”

The law says the beach is public on water side of the average high tide mark. But activists are preparing to go to court. They will argue all of the beach is open because that’s the way its always been.

“Even though people will say that their deeds go to the high water mark, the issue is, I think, the right of use, the right of customary use,” beach activist Andrea Page said. ”And I think that is a shared right. It has traditionally always been a shared right.”

The battle isn’t new. But homeowners along the one thousand miles of Florida coast will be watching to see how this turns out, so they’ll know where their beach ends and the public’s begins.

The Florida Supreme Court is already considering a case where property owners tried to claim ownership of a panhandle beach that was re-nourished after the 2005 Hurricanes. Depending on the outcome, Walton County may ask the entire county to have it’s beaches re-nourished.

The state manager of a troubled local government investment fund has resigned.  The fund is now in the hands of a private company.  As Chris Casquejo tells us, local governments are taking a wait and see attitude about the moves.

Hear it here: Local Government Investment Pool Manager Resigns

With a unanimous vote, the Local Government Investment Pool is now back in business.
Cities and schools can withdraw 2 million dollars, or 15 percent of what they have invested, whichever is greater.  Fears over subprime loans made the state freeze the fund, hire a private company, and led to the state fund manager resigning.

“Governor, I hope my actions today help the SBA move forward,” said Coleman Stipanovich, former executive director of the State Board of Admininstration. “Thank you for allowing me to serve for 7 years.”

$14 billion of local taxpayer money remains in the fund.  A private consultant hired by the state wants the bulk of that money moved to less risky investments.

“We needed to restore the confidence not only in this fund, but the whole SBA umbrella,” said Chief Financial Officer Alex Sink.

BlackRock is now the temporary adviser for the local government investment pool.  But the state wants to find a permanent one within three months.

Local governments have mixed feelings.  Maureen Rischitelli is the town manager of Oakland, a small town near Orlando.  Oakland has millions in the fund.

“The fund has been very good to us and we want to participate in that,” Rischitelli said.  “But the commission has to protect what the citizens want.  And they’ll come back with an answer.”

Local governments have little choice but to support the moves, or risk losing their investments.

The official Christmas tree now sits in the lobby of the governor’s office.  The tree came from BK Cedars Farm in Alachua.  Unlike year’s past, the tree is was not cut from its roots.  It remains planted.

“We’re happy that they’re happy,” said Sue Kossuth, the tree owner.  “It is a special tree that’s a lot better than run of the mill trees that we’ve developed.  And we’re just really excited that they’re going plant it and make it a state Capitol Christmas tree that’ll grow, get bigger.  And I think they’ll have a lot of pleasure.”

After the holidays, the tree will stand permanently outside the Capitol.

Governor Charlie Crist has fired back at House Speaker Marco Rubio over the Seminole gambling compact.  The Speaker sued, saying that the legislature needs to approve the compact before it becomes law.  On Monday, the governor’s legal team filed arguments against the lawsuit.

“What you’re seeing is a mutual respect of the separation of powers,” Gov. Crist said.  “I feel confident with where we are.  Our lawyers have done a very good job.  I look forward to the third branch of government making the decision.”

The 25-year compact with Seminoles gives the tribe the right to put slots and table games, but not roulette or craps, in 7 Indian casinos.  In exchange, the state takes a percentage of the tribe’s profits.  Oral arguments before the state Supreme Court will begin December 12th.

Drug control officers highlighted the latest trends in Florida’s drug war before state leaders.  The Office of Drug Control, Florida Department of Law Enforcement and local sheriffs gave presentations before the Cabinet highlighting the costs of drugs. 

“There’s no statistic that I can give you that will depict the magnitude of a call that comes to me about every week from a parent, from a significant other, who has lost child, lost a friend, a family member to a drug overdose, to suicide, to a traffic accident,” said Col. Bill Janes, the Director of the Office of Drug Control.

Some of the findings, an increase in hydroponic marijuana use and prescription drug abuse.  The law enforcement leaders said greater cooperation is needed among agencies to fight the drug problem.

Hundreds of local governments have billions tied up in an investment account state officials froze last week. Tomorrow, the state will decide how much, if any, the local governments can start withdrawing. As Mike Vasilinda tells us, smaller governments in particular are having to borrow to make ends meet.

Hear it Here: Local Government Investment Fund Problems

It was a classic 1920’s run on the bank. Local governments withdrew 16 billion from a state fund after news of bad investments.

The fund was frozen to halt the drain of cash.

“What happens to the participants who have the last 2 billion dollars in the pool?” CFO Alex Sink said. “They get zero.”

In rural counties, officials had to scramble to make payroll. Hal Wilson has 4 million of Jefferson County’s School cash in the fund.

“Alex Sink, making that motion to freeze the pool, she destroyed all remaining confidence in the pool,” Jefferson County Schools CFO Hal Wilson said.

The problem facing local governments is that because of bad investments in the state pool, there’s just not enough money to pay everybody off and keep everybody whole.
State staff worked all weekend with a hired consultant, looking for ways to keep the fund viable and solvent. A recommendation is expected to be taken up by the Governor and other investment board members Tuesday.

“I don’t want to prejudge the advice we’re gonna get, so I’ll wait until tomorrow,” Governor Crist said. “But I think it’s going to be fine.

The Governor side-stepped questions when asked if fund managers had been doing their job.

The fund has deposits of about 10 billion dollars right now, but only assets of about 8 billion.

An effort to make Florida’s delegates count in this summer’s National Democratic Convention goes to Federal Court this week. On Wednesday, a federal judge will hear US Senator Bill Nelson’s claims that not counting Florida delegates is a violation of equal protection. Mark Bubriski of the Florida Democratic Party says even if the delegates votes don’t eventually count, Florida is too important to the outcome that what happens on January 29th can’t be ignored.

“Florida is the most important state in the general election,” Bubriski said. “So voters in other states are going to be looking to Florida voters to say ‘who can win this big state, that has 27 electoral votes?’ They could really determine the presidency.”

Republicans declined to be interviewed on the topic today, but have said in the past that Democrats are just shooting themselves in the foot by not seating all of their delegates. The GOP is also being penalized, but will lose only half of its delegates because of Florida’s leapfrogging primary.

Governor Charlie Crist has gotten only lukewarm reaction so far when he asked the business community to fund a campaign to pass the property tax amendment on January 29th. Estimates suggest it will take from 5 to 15 million to pass the referendum, if then. Crist says he will do what he can to raise cash and is already looking beyond January 29th to perhaps another tax cutting amendment being pushed by the House Speaker

“And I’m committed to continue to go beyond January the 29th,” Crist said. “ And I hope that it passes. I think it’s important that we continue the momentum of property tax cuts in order to give us the chance to have more property tax cuts.”

If you have ever tried to search a state web site, you know it can be a nightmare. But help may be on the way. Governor Charlie Crist announced a partnership with Google today to simplify gathering information from Florida government. Currently, if you search for something from the state, Google will take you to the agency web site, but from there you are on your own. Under the partnership, the state will make it’s information more transparent to Google’s search engines. The governor says it should simplify searches.

“It seems to me that this makes it easier to get information in a way that people are more used to,” Crist said. “They’re probably not used to going to the website for the department of state or even the department of education, though I’m sure a lot of educators are. But this is something people sort of customarily use almost on a daily basis and they just put the name in or the subject matter and it takes them right there, instead of having to figure out ‘state.gov,’ you know all that junk.”

Only information that is currently public record will be available under the expanded search capabilities.