Legislative Update from Chris Thompson, President & CEO, VISIT FLORIDA

The end of last week marked the half-way point of the 2010 Legislative Session. The first four weeks saw both chambers of the legislature move through appropriations deliberations. Given the budget shortfalls and still challenging economic conditions, we’re in as favorable a position as we should expect to be at this point in the process.

In review, VISIT FLORIDA's public funding this year is a total of $25 million with $4.25 million from general revenue and $20.75 million from the Tourism Promotion Trust Fund. The latest projection for the trust fund is $17.6 million this fiscal year which has us an additional $3.15 million down. Consequently, we're a total of just under $14 million down from last fiscal year's high of $35.55 million. Even though the legislature appropriated $25 million for this fiscal year, we only have $21.85 million to invest.

The Senate passed a $69.4 billion appropriations bill which includes a recurring trust fund appropriation of just under $18.2 million for VISIT FLORIDA. The House passed a 67.2 billion appropriations bill which includes a recurring trust fund appropriation of just under $17.7 million and a non-recurring general revenue appropriation of $4.25 million for a total of just under $21.95 million for VISIT FLORIDA. The House total is about the same we have projected to have this fiscal year. The difference between the Senate and House total budgets is primarily due to additional revenues from a still unsettled gaming compact with the Seminole Tribe of Florida and an estimated $880 million in extra money from the federal government based on the assumption that Congress will extend a higher matching rate for Medicaid until the summer of 2011, which the Senate has already included in its appropriations bill.

Next steps include negotiations between the Senate and the House to arrive at a final appropriations bill. This begins with negotiations between the President of the Senate and Speaker of the House at the highest levels and will continue with the appointment of conference committees in both chambers to iron out the details and differences. The good news is that the House leads the conference committees’ negotiations this year and there is where we have the most favorable starting position. In the meantime we will be advocating for additional and increased funding based on economic and jobs stimulus themes with the leadership in both legislative chambers.

Our initial minimum ask as we head into conference committees negotiations is agreement on a base recurring trust fund appropriation and the balance in non-recurring general revenue appropriation up to a solid $25 million. Privately in the back halls and through back channels, we'll also be proposing an additional $10 million stimulus program based on jobs supported and created and ROI that begins as soon as 60 days after campaigns are implemented.

Our overall advocacy in Tallahassee has never been stronger including Chris Hart and his team at the Office of Tourism, Trade & Economic Development in the Executive Office of Governor Charlie Crist; the Partnership for Florida's Tourism including the Florida Restaurant & Lodging Association, the Florida Association of Convention and Visitors Bureaus, the Florida Attractions Association and the Florida Association of RV Parks and Campgrounds; and the leadership and lobbying teams associated with Walt Disney World, SeaWorld and Universal Orlando. We also have had outreach to and from the big three business trade associations, namely the Florida Chamber of Commerce, the Associated Industries of Florida and the Florida Retail Federation. In addition, we never take for granted the advocacy each and every one of you has provided leading up to and throughout this legislative Session.

There are a number of talking points we have been using to advocate for VISIT FLORIDA funding, with the elevator speech version as follows:

"Tourism Marketing Works"

"VISIT FLORIDA is part of the solution to Florida's economic challenges!"

• Every 85 visitors to the Sunshine State support 1 Florida Job;

• VISIT FLORIDA marketing efforts significantly influenced 26.7% of all Florida visitors supporting

- 20.3 million visitors,
- $15.8 billion in spending,
- $948 million in sales tax collections
- and 238,000 Florida Jobs;

• VISIT FLORIDA generates $55 in tourism spending and over $3 in new state sales tax collections within 60 days of campaign completion for every $1 the state of Florida invests in tourism advertising; and

• The Florida tourism industry invests almost $2 in VISIT FLORIDA marketing programs for every $1 the state of Florida invests.

Stay connected and engaged in our advocacy platform at www.floridastourismcounts.org – the official web site of the Partnership for Florida’s Tourism.

Stay connected to VISIT FLORIDA and hear all the latest Florida tourism industry news and insights at Sunshine Matters - the official corporate blog of VISIT FLORIDA.

We will provide additional updates as needed during the next four weeks of Session.

Until then, thanks again for your ongoing advocacy and support of Florida’s statewide tourism industry.

Together we are VISIT FLORIDA!

Regards,

Chris Thompson

President and CEO
VISIT FLORIDA®
(850) 205-3802
www.VISITFLORIDA.com