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Miami, Jacksonville deemed ‘sinkhole cities’ amid grim fiscal outlook

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When it comes to financial health, not all Florida cities are created equally.

In fact, two of them are among the worst positioned in the country among 75 cities rated in the new Truth in Accounting Financial State of the Cities report.

Miami and Jacksonville are both called “sinkhole cities,” graded as a “D” on a scale ranging from “A” to “F.”

Miami, at 67th in the country, has a per capita fiscal burden of $13,400 per resident. The city would need $2.3 billion to get out of the hole. Nearly $2.28 billion is obligated to pension and retiree health care costs.

Jacksonville is ranked 60th, in the hole by $3.6 billion, which equates to $9,800 for every citizen. Its pension liability of more than $5.1 billion is a big reason why the city is so cash-strapped.

Another big reason is big spending.

“Governmental activity expenses increased by $433.7 million from fiscal year 2022 to 2023, outpacing the $304.5 million rise in associated revenues. Public safety expenses, which account for 53% of total governmental costs, rose by $418.1 million adding financial strain,” Truth in Accounting noted.

It’s not all bad news though.

Tampa is the fourth-healthiest city in the country in terms of municipal finances, with a $505 million total surplus ($3,400 per taxpayer) helping move it from 12th place the year before.

Property tax collections are up $40 million year over year. That trend, combined with savvy pension planning, explains the jump.

“Tampa’s financial condition improved largely due to a reduction in its pension liability. After facing substantial investment losses in 2022, the city’s pension plans rebounded strongly in 2023. Notably, the Firefighters and Police Officers’ Pension Trust Fund, which experienced a 15.6% loss in 2022, reported a 17.1% investment gain, helping to restore its unfunded pension liability to more typical levels,” Truth in Accounting reported.

Orlando came in at No. 18, meanwhile, with a $300 surplus per taxpayer and a $37.6 million cushion overall.

But there is a caveat in the form of unorthodox pension accounting that makes the number less than reliable.

“The city’s finances appeared to improve as of September 30, 2023, largely due to a reduction in its net pension liability. However, this liability was measured as of September 30, 2022, when the market value of pension investments was higher. Cities with pension data available for 2023 have found that market fluctuations negatively impacted pension investments, increasing unfunded pension obligations, and it is likely the same will occur with Orlando.”

Both Orlando and Tampa received “B” grades in this year’s report.


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EU pushes back hard against Donald Trump tariff threats and his caustic comments that bloc is out to get U.S.

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The European Union on Thursday pushed back hard against allegations by U.S. President Donald Trump that the 27-nation bloc was out to get the United States, and warned that it would vigorously fight any wholesale tariff of 25% on all EU products.

The tit-for-tat dispute following the comments of Trump, which were aimed at an age-old ally and its main postwar economic partner, further deepened the trans-Atlantic rift that was already widened by Trump’s warnings that Washington would drop security guarantees for its European allies.

Thursday’s EU pushback came after Trump told reporters that “the European Union was formed in order to screw the United States. That’s the purpose of it, and they’ve done a good job of it,” adding that it would stop immediately under his presidency.

Prime Minister Donald Tusk of Poland, which holds the EU’s rotating presidency, went on a counteroffensive.

“The EU wasn’t formed to screw anyone,” Tusk said in an X post. “Quite the opposite. It was formed to maintain peace, to build respect among our nations, to create free and fair trade, and to strengthen our transatlantic friendship. As simple as that.”

And Spanish Prime Minister Pedro Sánchez added fiery fuel to the debate.

“We will stand up to those who attack us with unfair tariffs and veiled threats to our sovereignty. We are committed and prepared to do so,” he said in northern Spain.

The EU also warned that the moment that tariffs are announced, it would trigger tough countermeasures on iconic U.S. industries like bourbon, jeans and motorcycles.

“Spain and the EU have been together working for months, and we will adopt measures to respond firmly. We will do so as a bloc,” Sánchez said.

European Commission trade spokesman Olof Gill also said that the EU would stand up to the Trump administration if tariffs are announced.

“The EU will react firmly and immediately against unjustified barriers to free and fair trade,” Gill said in a statement. “We will also protect our consumers and businesses at every turn. They expect no less from us.”

Trump said in comments late Wednesday that the United States stood ready.

“We are the pot of gold. We’re the one that everybody wants. And they can retaliate. But it cannot be a successful retaliation, because we just go cold turkey. We don’t buy any more. And if that happens, we win.”

Gill also countered Trump’s caustic comments on the inception of the EU and its development as an economic powerhouse.

“The European Union is the world’s largest free market. And it has been a boon for the United States,” he said, adding that the EU has “facilitated trade, reduced costs for U.S. exporters, and harmonized standards and regulations,” which makes it easier for U.S. exporters.

The EU estimates that the trade volume between both sides stands at about $1.5 trillion, representing around 30% of global trade. Trump has complained about a trade deficit, but while the bloc has a substantial export surplus in goods, the EU says that is partly offset by the U.S. surplus in the trade of services.

The EU says that trade in goods reached 851 billion euros ($878 billion) in 2023, with a trade surplus of 156 billion euros ($161 billion) for the EU. Trade in services was worth 688 billion euros ($710 billion) with a trade deficit of 104 billion euros ($107 billion) for the EU.

The figures are so big that it remained essential to avoid a trade war, the EU has said.

“We should work together to preserve these opportunities for our people and businesses. Not against each other,” Gill said. “Europe stands for dialogue, openness and reciprocity. We’re ready to partner if you play by the rules.”

___

Republished with permission from The Associated Press.


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Danny Burgess looks to expand school cellphone ban

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Sen. Danny Burgess wants to see if keeping cellphones out of schools is helping students learn.

The Zephyrhills Republican has filed legislation (SB 1296) that would, if enacted, create a pilot program in six Florida school districts that currently have, or will have, policies in place prohibiting the use of cellphones by students throughout the school day.

“Florida became a model for the rest of the nation when we first passed legislation in 2023 to remove cell phones from classrooms,” Burgess said of HB 379 that year, which was the House companion to his SB 52.

“I was proud to help spearhead that policy change, which has helped to remove distractions, improve focus during class time and increase student interaction. Now, I believe there is more we can do to further promote ideal learning environments to increase student achievement. By establishing phone-free school campuses, we can encourage students to connect more personally with each other and their teachers and better support their academic efforts.”

The 2023 legislation bans cellphone use during instructional time. The pilot program that would be established under Burgess’ measure this year would expand that restriction further to include the entire school day, school activities on-campus regardless of the time, and off-campus school activities during the school day.

The Foundation for Florida’s Future is supporting the measure.

“Schools should be places where students and teachers are free to focus on learning,” said Nathan Hoffman, senior legislative director for the Foundation for Florida’s Future.

“Data continue to show that eliminating the cell phone distraction, not only in the classroom as Florida has in place now, but throughout the entire school day produces better outcomes — both from a school climate perspective as well as academic. This is important legislation that will keep the Sunshine State moving forward.”

Burgess’ bill would require the Florida Commissioner of Education to coordinate with six school districts selected by the Florida Department of Education (FDOE) that represent two small, two medium, and two large counties that currently, or will in the 2025-26 school year, implement the more robust cellphone restrictions.

FDOE would be tasked with providing a report to the Senate President and the House Speaker before Dec. 1, 2026. The report would summarize the effect of each district policy on student achievement and behavior. The report would also include a model policy that school districts and charter schools may adopt. It would also outline exceptions for health emergencies, disasters, students with disabilities and English Language Learners.

Exemptions would also be in place on school buses, or during activities outside of the school day. Additionally, the report would include student code of conduct provisions for violations of the policy that facilitate bullying or cheating, constitute illegal behavior, or capture pictures or video of another student during a medical episode.

Burgess filed the legislation Wednesday. It has not yet been referred to committee and there is no House companion. If approved and signed by Gov. Ron DeSantis, the law would take effect July 1, in time for the 2025-26 school year.


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New unemployment claims drop for the second week in a row

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First-time unemployment claims in Florida have fallen for a second week in a row.

New U.S. Department of Labor (DOL) figures show there were 5,698 new jobless claims for the week ending Feb. 22 in the Sunshine State. It’s a modest drop from the week ending Feb. 15, when there were 5,791 filings. That’s a drop of 99 claims before seasonal adjustments.

Even with only a slight decline, the latest numbers show a fairly strong trend for the state in 2025 thus far. There have been few weeks where the number of jobless filings went up.

Florida’s latest report was in line with the trend on the national level. There was a modest drop in claims across the country, with a total of 220,541 filings. That’s down by 2,997 from the last week, or a 1.3% decrease.

National unemployment claims are up year over year, however. There were 195,774 initial claims for the comparable week in 2024.

The weekly figures in Florida are reflective of a fairly upbeat unemployment picture in the past year.

The latest general unemployment rate is 3.4%, just a small uptick from the 3.3% rate seen in Florida through the Spring and Summer months, according to FloridaCommerce.

Florida’s general unemployment rate has remained below the national jobless figure for 50 straight months. As of January, the national jobless rate was 4%.

January’s unemployment figure for Florida is expected to be released within days by FloridaCommerce.

Florida, meanwhile, continues to add jobs to the workforce, according to FloridaCommerce. December saw 17,900 private-sector jobs added. The number of private-sector jobs compared to a year ago has increased by 122,800. That increase outpaced the national private-sector job growth rate of 1.3% in the same time span.

A Florida TaxWatch economic forecast released this month also projected continued job growth in the state for the next half decade.

According to the projection, the number of new jobs created in the state will definitely go up each year. But the pace of job growth could waffle. The TaxWatch study found there were 178,600 new jobs created in 2024. That figure will drop to about 121,900 in 2025. The forecast shows a steady decline in that figure, falling to 77,900 in Florida in 2027. But that fall-off will see a turnaround in 2028, with 80,900 new jobs created, and will escalate to 128,700 created in Florida in 2030.


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