by David Chapman
Staff Writer
With the Florida legislative session less than a month away, members of the Southside Business Men’s Club heard from someone who is going to be in the thick of trying to promote policies that benefit small business.
Bill Herrle, Florida executive director of the National Federation of Independent Business, spoke to the crowd of around 80 on a myriad of issues facing small business in Florida in the upcoming session and his role with NFIB to help small business in what is expected to be a difficult session.
“There’s an awful lot of hand wringing and panic going on (in Tallahassee),” said Herrle. “You’ve got to keep your spirits up even with some grim statistics.”
The NFIB is a nonprofit, nonpartisan organization that promotes and protects the rights of its members to own, operate and grow their businesses and give them a voice in the marketplace.
Herrle noted the downward spiral of Florida’s gross domestic product (after being one of the fastest growing states), high foreclosure rate and the first outmigration from the state in history as causes of an economy that will lead to a state budget shortfall of around $6 billion.
Such measures could mean the addition of things like cuts in service, intangibles and subchapter taxes — even with the state’s leaders’ and constituents’ strong resistance to tax increases — that would affect business owners.
“Tax resistance (in Florida) is high and tough to beat,” said Herrle. “But in my opinion, if taxes are increased it will be like a dam that’s going to break ... it’s going to flood. For them (legislators) to hold the line, it’s going to be tough.”
He noted that much of the budget problems stemmed from the real estate boom and subsequent bust that local government growth mirrored, but couldn’t effectively respond to. He added that while Duval County is considered a responsible local government at the statewide level, even it couldn’t avoid budget shortfalls.
One idea Herrle said the NFIB is trying to gather support for is creating an amendment for local government revenue caps — something he said would change local government spending habits and lead to responsible growth.
The economic downturn has led many business owners to seek guidance on their problems.
“Money,” said Herrle. “Meeting payroll, meeting notes, some say ‘I need customers’ ... those are just a few of the problems owners are having.”
Many small business owners took out second mortgages or used personal credit cards to begin their ventures, he said. But due to the real estate bust and dried up credit market, those lines of credit have evaporated and business is sagging,.
In response, Herrle said he takes all opinions in and refers some to local Small Business Development Centers for assistance, but uses their stories and problems to try to create public policies that might help them.
“We don’t want to see tax increases on them,” said Herrle. “There’s a lot of resentment out there from small business owners on the corporate bailouts.”
For Southside Business Men’s Club President Tim Buchanon, hearing from someone closely affiliated with small business legislative issues was educational.
“It’s good to be able to hear about some of the issues affecting small business,” said Buchanon. “The bigger picture is what is coming down the road and learning as an organization will help us out.”
In the meantime, Herrle has some advice for owners facing economic adversity.
“Have guts, show them what you’re made of,” said Herrle. “I’ve had some longtime business owners tell me real entrepreneurs relish the challenge because they come out stronger in the end.”
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