NAPLES – Job creation isn’t the only reason policymakers should explore ways to fast-track the creation of start-up businesses in Florida.  A new report by the Foundation for Government Accountability (FGA) indicates that bureaucratic red tape delaying start-ups causes big costs to out-of-work Floridians and state and federal taxpayers.

In The Cost of Bureaucratic Delay, FGA economist Joseph Burke, PhD, calculates the fiscal impact of delaying by just one week the creation of Florida start-ups to unemployed workers, and federal, state, county and municipal governments.

For an out-of-work Floridian receiving an unemployment check, a one-week delay costs an average of $900 in net lost wages and benefits.  Florida’s 2009 start-ups created 173,236 new jobs.  If those new jobs were delayed by just one week, the unemployed workers who would go on to find jobs as a direct result of start-ups would lose a total of more than $155 million in forever lost wages and benefits.  That compensation would go a long way toward financial security for out-of-work Florida families.  Their economic opportunity is forever lost because of bureaucratic delay.

“Start-ups are the drivers of job creation in Florida, but bureaucratic red tape is delaying start-ups and robbing out-of-work Florida families of good jobs, more pay, and freedom from government dependence,” said FGA Chief Executive Officer Tarren Bragdon.

Lost wages to out-of-work Floridians are not the only result of bureaucratic delay.  As a consequence of additional unemployment compensation and forever lost tax revenue, taxpayers also the sting of delay.  The report finds that delaying a single start-up just one week costs the state of Florida $288, while a one-week delay to a single start-up costs the federal government $1,393.  Delaying all Florida start-ups created in 2009 by just one week cost the state and federal governments about $9.9 million and $47.7 million respectively.

“Promoting start-up creation achieves two critical goals; putting Floridians back to work, and increasing revenue, without tax hikes, to a state and federal government consistently strapped by budget shortfalls,” Bragdon explained.  “Start-ups are the key to Florida’s economic recovery.  Future policies must reflect this critical point.”

Counties and municipalities also experience costs of delay, but far less than their state and federal counterparts.  Delaying a single start-up by one week costs the average county government $51.00 in declining property values and costs the average municipality just $19.00.  In total, delaying all 2009 start-ups by one week cost counties only $1.74 million and municipalities only $670,000.

“Regardless of who is to blame for delaying the creation of start-ups, there is a significant ripple effect throughout the entire system.  The consequences of red tape and inefficiencies are too great to ignore.  Out-of-work Floridians are being robbed of new jobs and greater economic freedom, and cash-strapped governments are losing revenue,” Bragdon said.  “We must cut the red tape, get government out of the way, and fast-track the creation of Florida start-ups.”

CLICK HERE to read The Cost of Bureaucratic Delay.

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CONTACT

Chris Cinquemani, Vice President

239.244.8808 (o), 207.240.7090 (m)

chris@floridafga.org

Georgia State Representative Jason Spencer, sponsor of HB 668, invited Bragdon to testify in support of his bill after studying earlier FGA research on Florida’s welfare cash drug testing requirement.  FGA analysis of state-generated data from the first quarter of the Florida law showed a 48 percent drop in monthly cash assistance approvals and a drug-related denial rate of 19 percent.  In all, Florida taxpayers saved an estimated $1.8 million.

In December, Bragdon gave a similar presentation on Florida’s welfare cash drug testing law to the Health and Human Services Task Force of the American Legislative Exchange Council, an association of public, private and non-profit policy leaders who collaborate to develop ideas that address common challenges faced by the states.

“Drug testing ensures taxpayers’ generosity won’t fund illegal drug addiction by setting reasonable parameters for welfare cash,” Bragdon explained.  “Florida’s law proves this welfare accountability measure achieves major taxpayer savings.  It preserves benefits for the truly needy, and keeps children safer by no longer enabling meth moms and dope dads with no-strings welfare cash.  Representative Spencer’s bill will accomplish these same positive results.”

Georgia State Representative Jason Spencer (left) with Foundation for Government Accountability CEO Tarren Bragdon (right) at a legislative hearing on Rep. Spencer's bill to require drug testing for welfare cash applicants in Georgia.

Like Florida’s law, the Georgia bill requires welfare cash applicants test negative for drug use before receiving welfare dollars and compels the state Department of Health and Human Services to provide a list of area drug treatment facilities to applicants who test positive.  The Georgia bill specifically exempts applicants’ drug testing results from public records laws and criminal investigations.

“It’s critical for both taxpayers, and for the children state welfare programs are meant to protect that welfare cash assistance is not used to subsidize an illegal addiction.  My bill in Georgia is one part of a broad and important nation-wide movement toward welfare accountability,” Rep. Spencer said.  “I’m grateful the Foundation for Government Accountability has done such great work researching the success of Florida’s law.  Tarren’s testimony is important for my colleagues in the Georgia Assembly to hear and understand.”

According to recent media reports, up to 37 states are considering welfare cash drug testing.  Besides Florida, Arizona and Missouri have already passed such legislation.  Many reject the activist ruling of pro-addict federal Judge Mary Scriven temporarily halting Florida’s law.  State leaders understand her decree—criticized by legal scholars and child advocates—is wrong and puts kids at risk.  Governor Rick Scott has appealed her decision.

“The success of Florida’s welfare cash drug testing law is clear, and I am encouraged that Georgia and other states are headed in the same direction,” Bragdon said.  “Representative Spencer should be commended for his leadership on this important issue.  The Foundation for Government Accountability supports his efforts, and the work of other state leader looking to protect kids and save taxpayer dollars.”

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CONTACT
Chris Cinquemani, Vice President
239.244.8808 (o), 207.240.7090 (m), chris@floridafga.org

TALLAHASSEE – The Foundation for Government Accountability (FGA) is shining a light on Florida government spending with the largest and most interactive government transparency Web site in the state—FloridaOpenGov.org.  With about 35 million public records detailing nearly $1.4 trillion in spending and payroll by state, county, municipality and school, FloridaOpenGov.org is taxpayers’ online transparency hub for government spending down to the employee, department and dollar.

FloridaOpenGov.org includes 18 years of spending and 15 years of payroll data—all obtained through public records requests—with a simple user-interface allowing visitors to search by employee name, department, salary, county, spending category, year, and more.

“FloridaOpenGov.org is about super sizing taxpayers’ right to know how politicians are spending their money—down to the employee, department and dollar,” explained FGA Chief Executive Officer Tarren Bragdon.

FloridaOpenGov.org includes:

•    County government payroll (FY 1997-2011)
•    Local K-12 public education payroll (FY 1997-2011)
•    State government payroll (1995-2010)
•    Local government spending (FY 1993-2010)
•    State vendor payments (FY 2005-2011)

FGA unveiled FloridaOpenGov.org on Monday at a Statehouse press conference, with a bipartisan group of state and local elected officials.  These officials helped raise awareness about FloridaOpenGov.org and the opportunities it creates for taxpayers to learn more about politicians’ spending decisions.

Florida Chief Financial Officer Jeff Atwater praised FloridaOpenGov.org as a powerful new taxpayer tool:

“As an advocate for government transparency, I support all resources both public and private, including FloridaOpenGov.org, that provide taxpayers with the tools to keep tabs on how their dollars are being spent,” he said.

State Representatives Matt Hudson (R-Naples), Rachel Burgin (R-Tampa Bay) and Joseph Abruzzo (D-Wellington) and City of Longwood Mayor Joe Durso also endorsed FloridaOpenGov.org as an important addition to Florida’s government transparency movement.  Other leaders noted the site’s value as well.

At the Capitol, Bragdon highlighted key findings from FloridaOpenGov.org, including the top ten highest paid state government workers (Department of Education employee Frank Brogan is number one), government workers who are members of the $100k salary club, state vendors with the most in government contract and payments, and local spending data.

CLICK HERE to see the PowerPoint presentation shown at Monday’s press conference.

“FloridaOpenGov.org will change all future conversations over government spending.  This easy-to-use online transparency hub allows citizens and taxpayers to become more informed than ever before.  An informed citizen is strong and powerful,” Bragdon said.

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CONTACT
Chris Cinquemani, Vice President
239.244.8808 (o), 207.240.7090 (m), chris@floridafga.org

Start-Up Companies Created More Than 1 Million Jobs from 2005-2009

NAPLES – Start-up companies in Florida created nearly 1.5 million jobs between 2005 and 2009, indicating that newly-launched companies are the drivers of job creation in the state, according to a new report released today by the Foundation for Government Accountability (FGA).

The report, Job Growth Overview: Start-Up Companies are Florida’s Top Job Creators, was authored by FGA economist Dr. Joseph Burke, and is the first report of the think tank’s Start-Up Florida initiative, a wide-ranging effort to research and raise awareness of the policies that impact start-up entrepreneurs, and advocate meaningful reforms to promote job creation in the state.

“Start-up companies are Florida’s top job creators.  Our policies must help start-up entrepreneurs open their doors sooner, hire their first employees quicker and get Floridians back to work,” said FGA Chief Executive Officer Tarren Bragdon of the Start-Up Florida initiative.

Since 2005, start-ups created a net total of 788,256 jobs in Florida (job creation minus job destruction).  In that same time, net total job creation from all types of establishments—start-ups, existing firms and firms that relocated to the state—was 159,836. Had it not been for start-ups, Florida would have experienced significant negative job growth since 2005 instead of modest job gains.

Other key findings from the report:

• 1.475 million – total jobs created by Florida start-ups established between 2005 and 2009
• 217,558 – average number of new jobs created by Florida start-ups annually
• 788,256 – number of net jobs created by Florida start-ups since 2005
• 159,836 – number of net jobs created in Florida by all types of establishments since 2005
• 44,295 – average number of start-ups established each year (2005-2009)

The recession has had a significant impact on the launching of Florida start-ups.  Since the recession began in 2007, the average number of start-up companies created annually is down 23.5 percent.

“Promoting start-ups is the key to Florida’s economic recovery.  Reducing the time and cost it takes entrepreneurs to launch start-ups will encourage job creation and help put more Floridians back to work,” Burke writes.

Future Start-Up Florida reports will delve into specific policies at the state and local level that impact start-ups, and a more in-depth look at how policies impact specific industries within the state.

“The conventional wisdom that small businesses are the key to job creation is incomplete,” Bragdon said.  “To create jobs and help get people back to work requires a complete picture of what’s working, and that picture must include start-ups.  Start-ups are Florida’s top job creators.  They are the crucial to lifting Florida from this recession.”

CLICK HERE to read the report.

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CONTACT:
Chris Cinquemani, Vice President
239.244.8808 (o), 207.240.7090 (m), chris@floridafga.org

Foundation for Government Accountability CEO Presents Florida’s Reform Successes

SCOTTSDALE, AZ – National health policy leaders learned what common sense health and welfare reforms accomplish for patients and taxpayers during a presentation by the Foundation for Government Accountability (FGA) to the Health and Human Services Task Force of the American Legislative Exchange Council (ALEC)last Friday.

FGA CEO Tarren Bragdon (right) with Wisconsin State Senator Leah Vukmir, public sector chair of the ALEC Health and Human Services Task Force.

The Health and Human Services Task Force is one of nine—and the largest—such sub-groups of ALEC, a non-partisan national coalition of public and private sector leaders committed to the free market, limited government and state’s rights.  ALEC members are comprised of state legislators and private and non-profit sector individuals who collaborate to develop ideas that tackle challenges faced by the states.
Bragdon, a nationally recognized authority in Medicaid and welfare policy, presented to the Task Force his talk titled Florida’s Health Care Reforms: Health and Welfare Successes in the Sunshine State at ALEC’s 2011 States & Nation Policy Summit in Scottsdale, Arizona.

“Florida has made tremendous accomplishments in the areas of patient-centered Medicaid reform and welfare accountability,” Bragdon said.  “I’m grateful to have shared these successes with free market leaders on the Health and Human Services Task Force.  Members left interested in exploring similar reforms for other states.”

Bragdon presented his research on Florida’s five-county Medicaid Reform Pilot, which expanded plan choices for patients, covers more health services than any other Medicaid program in the country, and achieves better health outcomes and higher patient satisfaction among participants.  The Reform Pilot, which began in 2006, has also saved Florida taxpayers an estimated $118 million annually.

A planned statewide expansion of Florida’s Medicaid Reform is pending approval of waiver requests submitted by the State to the federal Centers for Medicare and Medicaid Services.  Statewide expansion would save taxpayers up to $901 million every year.  If Florida’s Medicaid Reform were replicated nationwide, Medicaid patients would be healthier and happier, and American taxpayers would save up to an estimated $28.6 billion.

“As other states struggle with Medicaid crises, Florida has found a cure with its Medicaid Reform Pilot,” Bragdon said.

Bragdon also discussed Florida’s welfare cash drug testing law, which requires applicants to pass a drug test before collecting taxpayer funded welfare cash.  In October, after just three months as law, activist federal Judge Mary Scriven suspended the law based on personal ideology rather than fact.

Prior to Scriven’s pro-addict ruling, 19 percent of otherwise eligible applicants received a drug-related denial for failing to prove the welfare cash they sought would be used to support kids and families, not illegal drug addiction.  During its first three months, these drug-related denials resulted in an estimated savings of $1.8 million to Florida taxpayers.  Governor Rick Scott has appealed Scriven’s ruling.

“Welfare cash drug testing is a common sense solution to help protect children of drug addicts,” Bragdon explained.  “Our limited welfare dollars should not be used to fund addiction.  Scriven’s ruling has put Florida children at greater risk.”

Bragdon’s presentation was well received.

“Tarren presented the Task Force important information about Florida’s success in implementing reforms that are both pro-patient and pro-taxpayer,” explained Christie Herrera, Director of ALEC’s Health and Human Services Task Force.  “Tarren showed why members should look to Florida for free market Medicaid and welfare reforms that strengthen these safety net programs for those who truly need them, and save money for the taxpayers who fund them.”

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Contact:
Chris Cinquemani, Vice President
239.244.8808 (o), 207.240.7090 (m), chris@floridafga.org

NAPLES – Foundation for Government Accountability (FGA) Chief Executive Officer Tarren Bragdon sent a letter to the Community Health Action and Information Network (CHAIN) condemning the liberal group’s political campaign to stop statewide expansion of Florida’s successful Medicaid Reform.  The letter also rebukes CHAIN for refusing to propose alternatives that match the success of the state’s five-county Medicaid Reform Pilot.

“CHAIN has been vehement in its opposition to proven patient-centered health care reform.  Further, CHAIN has failed to offer meaningful reform alternatives that have shown to improve patient health and satisfaction.  One is left to believe the true purpose of CHAIN is to shackle Florida patients to a bureaucrat-controlled Medicaid system,” Bragdon wrote.

Florida’s Medicaid Reform Pilot has achieved better health outcomes and higher patient satisfaction compared to patients confined to traditional, bureaucrat-controlled Medicaid managed care and commercial HMO plans.  The Pilot has also expanded plan choices, covers extra health services and has created significant taxpayer savings.

Earlier this year, Florida submitted a series of waiver requests to the federal Centers for Medicare and Medicaid Services (CMS) so this Medicaid Reform can be enacted statewide.  Florida taxpayers are estimated to save up to $901 million annually from statewide expansion, and all Florida Medicaid patients, not just those in Reform Pilot counties, will become healthier and happier with their care.  Those requests are pending.

Last week, FGA sent a 24-page study authored by Bragdon to CMS analyzing Reform Pilot results along with a letter urging the federal agency to approve Florida’s waiver requests.  CHAIN’s intense lobbying effort to sway CMS to deny Florida’s requests discards the Reform Pilot’s benefits to both Medicaid patients and Florida taxpayers.

“As other states struggle with Medicaid crises, Florida has a cure with its Medicaid Reform Pilot,” Bragdon continued in the CHAIN letter.  “CHAIN has resisted this Medicaid cure from the outset, instead pushing a return to the failed, command-and-control system where bureaucrats—not the Medicaid patient or doctor—is in control of that patient’s care.  That’s not patient advocacy, that’s patient politics and it is wrong.”

Bragdon, a nationally-recognized expert on Medicaid and welfare programs, concluded his letter with a put-up-or-pipe-down message to the liberal group.

“Until CHAIN offers a meaningful alternative to Florida’s Medicaid Reform that prioritizes patients over the bureaucrats and special interests, CHAIN should end its political campaign.  In light of the tremendous accomplishments made by the Reform Pilot on behalf of Medicaid patients, and the achievements to come if and when CMS allows Florida to expand the program statewide, CHAIN obstructionism marks patient politics at its worst.”

CLICK HERE to read the letter sent by FGA CEO Tarren Bragdon to CHAIN.

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CONTACT:
Chris Cinquemani, Vice President
239.244.8808 (o), 207.240.7090 (m)
chris@floridafga.org

NAPLES – The federal agency deciding the fate of Florida Medicaid patients and taxpayers now has factual research, not just liberal talking points, as it deliberates over whether to permit a statewide expansion of Florida’s successful Medicaid Reform Pilot.

The Foundation for Government Accountability (FGA) sent a letter to the Centers for Medicare and Medicaid Services (CMS) today urging the agency to approve six pending waiver and amendment requests that would authorized the state’s Reform Pilot to expand statewide.  Earlier this year, the Legislature passed, and Governor Rick Scott signed legislation to implement statewide Medicaid reform, pending federal approval.

The letter was sent with the 24-page study authored by FGA President and Chief Executive Officer Tarren Bragdon comparing the Reform Pilot to traditional Medicaid and commercial HMOs.

“It is critical CMS has factual research on hand.  The decision CMS makes regarding Florida’s waiver and amendment requests is of significant consequence to Medicaid patients and taxpayers across our state,” Bragdon explained in his letter.

The letter highlights the many successes Florida’s Reform Pilot has achieved, including more plan choices for enrolled patients, additional services, better patient health outcomes, higher patient satisfaction, and lower taxpayer costs.

Reform Pilot patients had better health outcomes for 64 percent of measures on a widely-used health care effectiveness benchmarks, HEDIS, compared to patients confined to traditional Medicaid.  In 68 percent of measures, Reform Pilot patients had greater health improvement compared to non-Reform patients.  Reform Pilot patients are also happier with their care and services, with 83 to 100 percent of satisfaction measures among Reform Pilot patients at or above national benchmarks for Medicaid managed care and commercial HMO plans.

“Meaningful health reform accomplishes two essential goals: patient health outcomes must improve, and patients must be satisfied with the care they receive.  The Medicaid Reform Pilot has met and exceeded these goals,” Bragdon said.

Taxpayer savings have spiked as well.  The Reform Pilot has already saved taxpayers an estimated $118 million annually.  If statewide expansion goes into effect, Florida taxpayers could expect savings up to $901 million annually.

“Traditional Medicaid funding consumes almost one-third of Florida’s $69 billion state budget,” Bragdon wrote.  “As Medicaid costs continue to grow faster than general tax revenue, important future investments in education, infrastructure and job creation are put at risk.  Medicaid must be transformed.  Now, the health future of Florida’s Medicaid patients and the fiscal future of Florida taxpayers rest with CMS.”

CLICK HERE to see the letter sent to the Centers for Medicare and Medicaid.

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CONTACT:

Chris Cinquemani, Vice President

239.244.8808 (o), 207.240.7090 (m), chris@floridafga.org

Healthier, Happier Patients and a National Model to Cure State Medicaid Crises

NAPLES – Florida’s five-county Medicaid Reform Pilot, passed in 2006, sought to give Medicaid patients greater freedom and control over their health care than the traditional government-designed system allows.  Today, as other states struggle with a Medicaid crisis, Florida’s Reform Pilot is a decided cure.

A report published by the Foundation for Government Accountability (FGA) and the Heritage Foundation shows that through its Reform Pilot—now serving 290,000 patients in Baker, Broward, Clay, Duval and Nassau Counties—Florida improved Medicaid patient health and satisfaction, and saved taxpayers significant sums.

The 22-page report authored by FGA President and Chief Executive Officer Tarren Bragdon, Florida’s Medicaid Reform Shows the Way to Improve Health, Increase Satisfaction, and Control Costs, compares Florida’s Medicaid Reform Pilot to traditional Medicaid and commercial HMOs in several areas, including patient choice, health outcomes, patient satisfaction and taxpayer costs.

“Transforming Medicaid empowers patients with control over their health future.  When the patient is the priority, government and HMO bureaucrats are finally held accountable.  Costs flatten and patient health and satisfaction improves,” Bragdon said.

Unlike traditional Medicaid, with one government-designed plan for all enrollees, Reform Pilot patients can choose among 2, 3 and 11 plans, depending on their county, to find a plan to best meet their unique health needs.  Reform Pilot plans also feature 7 additional services, such as additional hearing and dental benefits, over-the-counter drugs, nutrition therapy and in-home respite care.

Patient health outcomes and patient satisfaction are also greater compared to enrollees confined to traditional Medicaid.

On a national indicator of health outcomes, Reform Pilot counties outperformed non–Reform Pilot counties in 64 percent of measures and exceeded the national average in 53 percent.  For Reform Pilot health maintenance organization (HMO) plans, 83 percent of satisfaction measures met or exceeded the national Medicaid benchmark and national commercial plan benchmarks.

“Medicaid patients are similar to anyone else. Their plan options should reflect their individual needs and situations,” Bragdon explained.  “Florida’s Pilot achieves this compassionate, patient-centered reform and our Medicaid patients are healthier and happier as a result.  The Reform Pilot makes the patient the priority.”

Along with patient health and satisfaction, taxpayer savings have grown as well.  With patients managing more of their own health decisions, the Reform Pilot has already achieved an estimated $118 million in annual savings.  If the federal Centers for Medicare and Medicaid Services permit a planned statewide expansion, taxpayers could save up to $901 million annually.

The FGA report also highlights Florida’s Medicaid Reform Pilot as a national model for other states seeking patient-centered health reform.  If the Reform Pilot experience were replicated nationwide, combined annual Medicaid savings would reach up to $28.6 billion annually.

“Florida’s Medicaid Reform Pilot is patient-centered care at its best.  The Pilot has accomplished the most important goals of health reform—healthier, happier patients at a lower cost,” Bragdon said.  “As other states look to Florida for a cure for their own Medicaid crises, the federal government should recognize the positive outcomes the Pilot has achieved and allow Florida to implement this reform statewide.”

CLICK HERE TO  READ THE REPORT.

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CONTACT:

Chris Cinquemani, Vice President
239.244.8808 (o), 207.240.7090 (m)
chris@floridafga.org

“Child advocates and welfare watchdogs are proud of Governor Scott today for fighting Judge Scriven’s dangerous decision enabling addict parents with more welfare cash.  Our tax dollars should not be used to fund illegal drug addiction that traps children in unsafe homes.”

“Judge Scriven put Florida kids at greater risk and terminated a welfare accountability program that achieved major savings for Florida taxpayers.  During the three months welfare drug-testing was law, the state saved $30.64 in drug-related denials for every $1.00 spent reimbursing applicants who were drug-free.  That’s $1.8 million in savings and peace of mind that welfare dollars were reserved for people who were honestly in need of a temporary hand up.”

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Contact:

Chris Cinquemani, Vice President
239.244.8808 (o), 207.240.7090 (m)
chris@floridafga.org

“Judge Scriven’s ruling against Florida’s drug-testing requirement for taxpayer-funded welfare cash is disappointing, and removes needed accountability from our welfare system.  Our analysis of the law shows that the requirement is saving the state millions in welfare benefits, and helps ensure taxpayer dollars are reserved only for the truly needy.”

“The Foundation for Government Accountability rejects the notion that setting parameters around the distribution of welfare cash is unconstitutional.  This law does not require universal drug testing.  Rather, it places the reasonable requirement of sobriety on those who wish to benefit from taxpayers’ generosity.  I urge Governor Scott and Attorney General Bondi to fight this decision, and to explore even more ways to improve accountability for welfare cash.”

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CONTACT:

Chris Cinquemani, Vice President

239.244.8808 ext. 2, chris@floridafga.org