Responding to an internal Republican Party of Florida audit, Attorney General Bill McCollum announced on March 31, 2010, that former party Chair Jim Greer was the subject of an ongoing criminal investigation. The attorney general, who also is the likely Republican nominee for governor in 2010, said the audit "indicates that there may have been criminal activity." He said that upon learning of "this very serious and concerning information," he referred the matter to the Florida Department of Law Enforcement (FDLE). A department spokesperson confirmed that the FDLE Office of Executive Investigations was handling the case.
According to Sen. John Thrasher (R-St. Augustine), who was elected to replace Mr. Greer as party chair in February 2010, the audit found that Mr. Greer and former party Executive Director Delmar Johnson jointly owned a company that received a 10-percent commission on major donations to the party. News reports indicate that the arrangement between the company, Victory Strategies LLC, and the party was never disclosed to the Republican Party of Florida executive committee.
Republican Party of Florida Audit Triggers Investigation of Former Party Chair
News reports also cite party sources as stating that the auditors could not verify whether more than $50,000 in expense reimbursements paid to Mr. Greer and thousands of dollars in credit card charges by Mr. Greer and Mr. Johnson were for legitimate party activities.
One day after the investigation was announced. Mr. Greer filed a breach of contract action against the party, alleging that the party had violated a heretofore-secret severance agreement. The January 4, 2010 agreement promises to pay consulting fees and benefits to Mr. Greer for one year after his resignation as party chair and recites that "All RPOF expenditures made during Chairman Greer's term as RPOF Chairman were proper, lawful, and appropriate."
The agreement was apparently negotiated by Sen. Thrasher, Senate President-Designate Mike Haridopolos (R-Melbourne), and House Speaker-Designate Dean Cannon (R-Orlando). A version released to the press includes Sen. Haridopolos' signature, along with the signatures of Mr. Greer, Mr. Johnson, and party General Counsel Jason Gonzalez.
Mr. Gonzalez responded that the contract had not been executed by the time the party executive committee accepted Mr. Greer's resignation and that, "any such agreement would have been voidable as a result of Greer's concealment of his involvement in Victory Strategies and the pending criminal investigation into his actions."
State Chief Financial Officer Alex Sink, the likely Democratic candidate for governor, called for an independent prosecutor to investigate the developing scandal. Gov. Charlie Crist responded with a suggestion that a federal investigation may be appropriate in light of the possibility that tax evasion is involved. A spokesperson for Attorney General McCollum stated, "We believe the Florida Department of Law Enforcement is the appropriate authority to conduct this criminal investigation at this time. However, we have absolutely no objection to the U.S. Attorney's Office investigating this matter, or any other appropriate investigatory agency."
State Budget: Legislature Poised to Begin Conference Committee
Negotiations to Resolve Budget Differences
In a work week shortened by the Passover and Easter holidays, the Florida House and Senate passed their respective budget plans on March 31 and April 1, 2010. The Senate unanimously passed its $69.4 billion spending plan for the 2010 – 2011 fiscal year, while the House passed its $67.2 billion plan on a party line vote of 77 to 44. The two chambers are now in a posture to begin negotiations to resolve the $2.2-billion gap.
The Senate plan counts on two revenue sources that are not in the House budget: an additional $880 million in federal Medicaid funding, which has not yet been appropriated by the U.S. Congress, and $412 million in revenues from a Seminole Indian gaming compact.
One of the major areas of difference is public education, where the Senate would raise per-pupil expenditures by $38.86, and the House would cut per-pupil expenditures by $52. In the area of environmental protection, the Senate provides $15 million for the Florida Forever land-purchase program and $10 million for Everglades restoration; the House provides no funding for either of these activities.
The House also cuts affordable housing funding by $174 million, state payments to hospitals by $171 million, and funding for public libraries by $8.5 million.
Both budget plans propose to reduce state payroll costs. The House's approach is to require each state agency to cut payroll by three percent. The Senate eliminates free health insurance coverage for state employees, but the state would still cover 90 percent of health insurance premiums under the Senate plan.
The Senate budget also includes major changes to Medicaid, which currently accounts for more than 25 percent of state spending. Under the Senate plan, 274,671 Medicaid recipients in 19 counties would be moved into health maintenance organizations, generating a savings of $28.6 million in 2010 – 2011 and savings of more than $100 million a year in later years.
Gaming: Legislative Negotiators Reach Agreement With Seminole Tribe on Gaming Compact
On April 2, 2010, House Select Committee on Seminole Indian Compact Review Chair Bill Galvano (R-Bradenton) announced that legislative negotiators had reached an agreement with the Seminole Tribe of Florida on a five-year, $1.5-billion gaming compact. Rep. Galvano, Senate Regulated Industries Chair Dennis L. Jones (R-Seminole), representatives of Gov. Crist, and representatives of the Seminoles participated in the negotiations. Rep. Galvano said, "We feel we have an agreement we can take back to our respective chambers," but "it's not a done deal until we get it through the House, the Senate, and the Tribal Council."
Under the compromise, the tribe would have the exclusive ability to operate blackjack and other banked games at casinos in Hollywood, Immokalee, and Tampa, with an option to add casino games at Coconut Creek. The tribe also could operate Las Vegas-style slot machines at all seven of its casinos for the next 20 years.
The agreement also provides for no-limit poker and extended hours for poker rooms at parimutuel facilities, and allows for video bingo and historic race machines at parimutuel facilities.
According to Rep. Galvano, the agreement should provide more than $400 million in additional state revenue during the 2010 – 2011 fiscal year.
On March 31, 2010, the Senate passed SB 1238 by Sen. Jeremy Ring (R-Margate) that would break up the Department of Management Services and reorganize the state's personnel and procurement functions.
Currently, the Department of Management Services is responsible for procurement, property management, human resources, and other management functions. It is headed by a secretary appointed by the governor. Under the bill, the Department of Management Services would be renamed as the Department of Personnel Management under the governor and cabinet. The new agency would oversee human resources, retirement, and insurance. The Department of Financial Services, which is headed by the state chief financial officer, would be responsible for procurement. The Department of Environmental Protection, which is headed by a secretary appointed by the governor, would be responsible for facilities management and building construction. Other functions would be divided among the Executive Office of the Governor, the Department of Law Enforcement, and the Agency for Enterprise Information Technology.
The bill passed the Senate by a vote of 35 to 2. It has been scheduled for consideration by the full House of Representatives on April 6, 2010.
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