Florida’s Viewed as Being Better for Business post DeSantis v Disney – Top 3 Takeaways – May 2nd, 2023
- DeSantis vs. Disney hasn’t done anything to dampen the enthusiasm businesses have for Florida. That’s the key takeaway from the latest annual report showing Florida still ranking right near the top for business. For the second year in a row Florida is the 2nd best state for business according to the Chief Executive Group. As the publication stated: It was the big question going into our annual Best & Worst States survey of CEOs this year: Would Florida Governor Ron DeSantis’ high-profile battle with Walt Disney Co. sour CEOs on Florida as a site for locating and expanding their companies? The answer, it seems, is no. Notably, what makes the annual Chief Executive Group study so interesting in comparison to others is that it’s not based on business metrics and the operating environment for businesses as is the case with others. It’s based on what CEOs themselves say. If perception is reality, only Texas is perceived to be better than Florida. Reality has also suggested that Florida’s now the overall best state for business as was recently measured by the American Legislative Exchange Council, in addition to a recent Census Bureau study of entrepreneurs. So, in effect, perception and reality are just about in the same place. In fact, in the CEO study, Florida actually gained ground on Texas this year. On that note the study said this: Florida has exhibited more of the same characteristics as Texas over the last several years, with a decidedly stronger tilt toward business beginning with the start of DeSantis’ term as governor in 2019, after he had been a U.S. House member. The state’s strong stance against pandemic-motivated business shutdowns seems to have boosted Florida’s popularity among business owners as well, adding to a migration boom. So yes, not only has DeSantis’ battle with Disney not been an issue for attracting businesses and jobs to Florida, but Florida has become even more desirable for businesses because of DeSantis’ leadership.
- Where perception and reality haven’t lined up is the media’s handling of that saga, compared to the real-world reality on the ground. Ask yourself this question if you’re a CEO, all other things being equal. Would you rather do business in a state that has carved out special rights for one business that doesn’t apply to any others, or would you rather do business in a state that treats all businesses equally? This isn’t complicated. Not in the least actually. Disney’s protesting of Florida’s Parental Rights in Education legislation was clearly the catalyst for the ending of Disney’s reign of self-governance. However, the bottom line is that the effort Governor DeSantis has led to end their decade’s long reign of controlling their own magic kingdom, free from the accountability of Floridians and our government, wasn’t only justified. It’s been long overdue. As I’ve said right along, it’s inarguable for Disney to have special rights that no other business, no other non-profit or any that citizen in the state of Florida has. Smart business leaders want a level playing field that is reliable. Not one that picks winners and losers. Many in news media reporting on the DeSantis and Disney drama may not be smart enough to understand this, however most CEOs are. That’s why Florida’s only become more desirable in the eyes of the average CEO over the past year since the battle with Disney began. And speaking of that battle...
- It’s entered a new phase. Last week Disney sued DeSantis. Yesterday, the newly appointed oversight board for Reedy Creek sued Disney. The unanimous vote authorizing the lawsuit came on the back of this comment by Chair Martin Garcia who said: We have no choice now but to respond. We'll seek justice in our own backyard. This district will seek justice in state court here in central Florida where both it and Disney reside and do business. In essence, Disney is asking a federal court in Tallahassee to wrestle back the hands of time to 1967. For us to be stuck in an urban-planning design of 1967 — does that make sense to anybody? Now what’s especially interesting regarding the boards countersuit, as was noted by Garcia’s comment of seeking justice “in our own backyard”, is that Disney’s lawsuit seeking to resolve a governance issue with the state of Florida was to file a federal lawsuit. Presumably because they figured they’d fare better with a federal Obama nominated Judge in Mark Walker who has seized on the opportunity to rule against Governor’s Scott and DeSantis in the past (though usually having his rulings overturned in the end). The board’s lawsuit to resolve a state issue is within the state court system, which includes a bevy of judges who’ve been appointed by our current governor. Of course, none of that should really matter in matters of justice, however we know it often does. This feud began with politics and the legal chess match currently being played by both sides reflects it. And here’s the interesting bit of food for thought. Should a federal judge rule one way and the state legal system another – we could be set up for a potential 10th Amendment showdown. What right would the federal government have to tell Florida how to govern itself? Or most specifically, what right would the federal government have to say that Disney gets to govern itself as it sees fit within the state of Florida? The strategy being played by the board suggests an awareness of this.