Outrage. Florida's economy crashes, state holds $795 million in cool cash for CSX.

[madfloridian]

The CSX deal is one of Jeb Bush's legacies to this state. It was rammed through in 2004 and 2005 so secretly that some moderate Republicans never knew about it.

This is an outrageous situation. It really is. It is going to hurt most of Central Florida by cutting cities in half with long freight trains and destroying rural subdivisions and environment. CSX appears to be completely in charge, able to make all the rules.

This editorial is an angry one. It goes so far as to ask the question about Florida:

Who, exactly, is running state government, and what happened to checks and balances?

The state is laying off teachers, cutting health care, cutting everything in sight....and still holding almost 800 million in ready cash for CSX which earned 2.2 billion last year.

Florida Holds Gold Mine for CSX

While Florida lawmakers were making a billion-dollar raid on trust funds, draining the state's rainy-day fund, and slashing education, health care and social services last week to balance the state budget, the Department of Transportation was sitting on a cool $795 million in ready cash set aside for a sweetheart deal that may not even come to fruition.

The money is in hand and awaiting finalization of a deal between the DOT and CSX that would create a commuter line in the Orlando area. The state's plan to buy 61 miles of rail line for the Orlando commuter train would force CSX to shift much of its freight traffic to its S Line, which travels through the center of the state, including Lakeland, and already carries a large number of trains daily.

What is puzzling about the CSX deal is that, to hear our lawmakers talk, it hinges on resolving a question of liability when CSX uses the Orlando commuter rails on off-peak hours. Why aren't the fiscal conservatives or the fiscally responsible in Tallahassee asking why the state of Florida is paying a national corporation that made a record $2.2 billion profit last year - up 26 percent from the year before, incidentally - so much for a project that some observers say could be done for one-third or less than the current price tag?

Yes, where are all the small government, so small you can drown it in a bathtub Republicans who should be speaking out on this absurdity?

WHO'S RUNNING STATE GOVERNMENT?

DOT officials say that because the CSX money was appropriated by the Legislature in 2006 for the commuter line, hence, for CSX, it does not need the Legislature's approval to move forward with the project. That, of course, begs the question: Who, exactly, is running state government, and what happened to checks and balances?

It is outrageous that the state of Florida would allow teachers to be laid off, poor people to be denied access to health care and other support services, infrastructure to be neglected and universities to turn away qualified students while it has access to $795 million of unencumbered taxpayers' money. All because a company with deep pockets, a record profit, and an army of lobbyists and its patrons in the Legislature want to pay too much for a commuter-rail line that is not even guaranteed of being a success.

Here is some background on the CSX deal, immunity, and the burden on the state. It's a pathetic story of things that never needed to happen.

How the deal was rammed through by Jeb and his cronies.

Top Florida Republican accuses Jeb Bush of brokering the harmful CSX deal

Whether it is the good fortune of having your buddy Gov. Jeb Bush honchoing a deal for you or whether CSX CEO Michael Ward is simply a good negotiator, it pays handsome dividends.

In November 2004, CSX executives made a half-billion-dollar pitch to Bush's Florida Department of Transportation. That pitch is now being played out in an impending agreement to pay CSX $491 million of taxpayers' money to move some of its freight trains off what they call the A Line, running down the east central part of Florida to Orlando over to the S Line, running down through west central Florida: Gainesville, Ocala, Plant City and Lakeland. The terminus is Winter Haven, where CSX wants to build a huge intermodal logistics center. The payoff for CSX's Ward was $36 million in salary and benefits paid to him in 2005 and 2006.

Much of the funding for the $491 million, a first-of-a-kind deal for a private company, was accomplished in the 2005 session of the Florida Legislature. The Tampa Tribune reported in its Nov. 28 edition that few legislators knew of the Bush-backed Senate Bill 360 where the funding was inserted just before midnight on the last day of the legislative session, May 6.

Perhaps it's worth knowing that Ward's CSX predecessor was John Snow, who left CSX to head up theU.S. Treasury Department for Gov. Bush's brother, President George W. Bush.

It helps to have friends in high places.

Here's more about the immunity and what a ridiculous idea it is.

Florida House gives CSX immunity from liability, puts burden on the state.

TALLAHASSEE | A deal passed Thursday by a Florida House committee would force the state to pay legal costs resulting from accidents on a proposed commuter rail line in Orlando, even if a private railroad company was at fault.

"If we want to put passengers on that line, then we have to accept responsibility," said Rep. Rich Glorioso, R-Plant City, chairman of the House Infrastructure Committee, which passed the indemnification Thursday. There are still many more stops before the plan faces final approval, with a May 4 deadline.

Under the proposal, even if CSX railroad employees or actions were totally responsible for an accident involving passengers, the state would be liable for the legal damages suffered by passengers.

Jeb is getting rather touchy on the situation now, and he encountered some very unfriendly reporters last year in Central Florida.

Jeb gets upset, denies secret CSX deal

Catching Up with Jeb

For those who listened more to the pitter-patter of rain than the local news, Jeb Bush was in Lakeland yesterday. No, not to apologize for perpetuating a pestilence upon the people of Polk County. He was here to discuss "leadership."

Bush was surprised to find that reporters in Lakeland were not welcoming him home with Nerf ball questions. They wanted to discuss CSX. They were even polite, and asked if they could ask first.

...Bush, in Lakeland as a speaker for two Southeastern University events, was asked after his afternoon speech if he had time to answer questions.

He said he wouldn't if the questions were about CSX.

..."“There was no secret deal ... I resent the implication,” Bush said angrily. “I believe a significant number of people in this community support the thousands of jobs it will bring.” -- Polk County News Blog

This is a powerful editorial, and I hope other media voices join The Ledger in asking..."Who's running the state."

[atreides1]

1. Start finding out who holds deeds to the land.

I'd start by looking at land ownership in the area that the commuter line was being built.

Remember Hastert, he got a great deal on land he owned where an interstate off-ramp was being built.

I'm guessing that those members of the Florida legislature that pushed this bill through without the "knowledge" of their "moderate" collegues might have some interest in this deal.

[The Backlash Cometh]

5. I bet I know where it's going.

In the last ten years, there has been a big move to buy land for a special trail that cuts across parts of Central Florida. It's a walking trail. I knew, even back then, that one day it could be taken over for some kind of commuter rail. Bait and Switch. I'm willing to bet.

[madfloridian]

9. The Heartland Parkway....up the rural center of the state.

http://journals.democraticunderground.com/madfloridian/1204

"The Heartland Parkway project was controversial because a Lake Wales Senator, J.D. Alexander, controls companies that own land along the proposed development route. It is estimated that the road would cost between $6.3 billion and $7.8 billion. "

Katherine Harris's cousin. And her other cousin is suing that cousin over the parkway and some company.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4297977

"On Thursday, state Rep. Baxter G. Troutman of Winter Haven sued his cousin, state Sen. J.D. Alexander of Lake Wales, along with Alexander's father, John R. Alexander. The lawsuit claims Alico Inc. - a family-controlled, LaBelle-based business - has suffered more than $1 million in losses because of mismanagement.

The lawsuit claims the Alexanders "negligently, carelessly, and intentionally failed to perform their duties" and funds and assets of Alico were wasted.

..."Troutman said filing the lawsuit against family members was a necessary business decision.

"I feel it's my fiduciary responsibility to stand up for the little guys," he said. "I fully expect that there will be other Alico shareholders who have already mentioned joining the cause."

The lawsuit was filed with less than two weeks left in J.D. Alexander's campaign to be re-elected to his state Senate seat. Troutman wasn't opposed for re-election to his House seat. Both men are Republicans.

Troutman and Alexander have been locked in a struggle over the future of the family's massive land holdings. Troutman wants to keep much of the land in agricultural use, while the Alexanders have pushed for more intensive development."

I'm with Baxter.

[Cassandra]

2. Their liability deal sounds like...

the same one they have with Amtrak. When CSX gets sued for negligence on their tracks, the settlements are turned over to Amtrak for payment.

[madfloridian]

3. Also found a similar editorial from Ocala

http://www.ocala.com/article/20090121/OPINION/901211003?Title=An_embarrassment_of_state_riches

"DOT officials have tried, albeit unsuccessfully, to convince the communities that will inherit the added train traffic that the deal is a win for the whole state. Orlando gets its commuter line and, presumably, less congested roads. Communities like Ocala, Alachua and Wildwood get big new overpasses, freeing up the traffic flow long interrupted by CSX trains.

Oh, and we also get a sharp increase in freight train traffic of up to 30, maybe more, trains per day. Right through the heart of town. With no economic benefit to the community at all. And as for the overpasses, the one in Ocala, at least, was not only due anyway, but overdue.

When the Legislature convenes for its regular session, it faces some $3 billion in new budget shortfalls. Before cutting education, health care and public works more, lawmakers should cut back the CSX deal. Its price tag of $795 million is simply unacceptable given the state's current economic health. That our lawmakers have refused to take a serious look at raiding the CSX fund - like it did with the Chiles Endowment - is an abrogation of duty."

[madfloridian]

4. Freight terminal may make Sundance ranch estates homes unlivable.

So a state senator would be for adding funding to bail them out. Why not CSX bailing them out? Why the state?

What the heck is going on here. Dockery used to be against this deal.

"Sundance residents get offers of help from legislators

Sundance Ranch Estates homeowner Sharon Kiser got some offer for help in their quest to persuade CSX to buy them out and let them move on to resolve their fears that the development of the CSX freight terminal will make their homes unlivable. Kiser didn't have an estimated price tag for the buyout.

Sen. J.D. Alexander, who has supported CSX's development efforts, said he'd be willing to set up a meeting with CSX to discuss the buyout, which he said he understood was under way.

Sen. Paula Dockery, who has been critical of state funding of the CSX project, said she would support adding funding to buy out the Sundance homes to the $23 million already proposed to pay for relocation of equipment from CSX's Taft freight yard to the Winter Haven facility."

http://county.theledger.com/default.asp?item=2318904

They deserve compensation most surely. But why is CSX getting out of this deal so painlessly?

[Dr.Phool]

6. A side note: J.D. Alexander is Katherine Harris's cousin.

We know how deep that family's well runs.

[madfloridian]

22. And the other cousin Dexter is suing J.D. What a family.

Dexter says J.D. is ruining the famly business.

[Dr.Phool]

7. The entire Florida Legislature. All Of Them. Along with Jeb and popular Charlie.

Should be indicted under RICO for running a Continuing Criminal Enterprise.

Add in their gift of a 25% rate increase to Progress Energy, starting this month, to pay for 2 nuke plants that may, emphasis-may get started on construction, 10 years from now.

[onethatcares]

8. look on the bright side, we got POWERBALL

these damn thieves should be keel hauled. They've killed public school education in the state, and they're killing the elderly all because of some idiot idea that no one wants to pay taxes. Meanwhile, they're taking our tax dollars and handing it out to the connected, jeez, it is like a mafia movie. The 25% for the nuke plant was brought to us by the Public Service Commission that has been kissing Progress Energys' butt for a long time.

Now Citizens is talking about raising its' rates 10% per year, WTF????? I'm running outa ways to make a living here and keep up with every damn thing that keeps going up, up, up.

[Dr.Phool]

12. The Progress deal was put through by Jeb and the legislature.

PSC is just putting the finishing touches on it now. The sad thing is it passed with ONLY ONE dissenting vote by a Dem, who's no longer in office.

[Divine Discontent]

23. post of the thread! RICO their asses! They are complicit in scamming the 20 million citizens of FL

and raiding the wealth of its citizens by imposing a massive 25% rate increase to pay for some nuke plants that MAY start producing energy in a decade or longer, and, this CSX scandal should SEAL THE DEAL on JEBBY for Senate - if I were the Democratic contender - I would run over half my ads on this subject alone, and say he's not fit to be a senator looking out for Floridians interest from the federal govt.

SCANDALOUS

FILTHY

CRIMINAL

thy name is Florida Politics.

[madfloridian]

26. Amen to that. All of them.

:hi:

They have systematically destroyed Florida's economy while much of the time our Democrats stood silently...only a few speaking out.

[bushmeister0]

10. CSX is a sponsor of NPR. That explains a lot.

[Divine Discontent]

24. ha... aint that the truth! eom

[Donnachaidh]

11. Doesn't the Carlyle Group own CSX?

And isn't Poppy involved heavily with the Carlyle Group?

[Joanne98]

19. Here's a DU link from 2006.. Carlyle bought CSX and then sold it to Dubai World

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x497655

The Bush/Saudi bidness....

[Name removed]

13. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Melinda]

14. Wow, you didn't even try to change your FreeRepublic copy/paste post!

Blatant little sucker, ain't ya? :rofl:

[madfloridian]

17. Didn't last long.

Pretty blatant. :evilgrin:

[struggle4progress]

15. This is your state. This is your state after fifteen years of Republican government.

Any questions?

[AzDar]

16. K & R

:kick:

[L0oniX]

18. Bushed again n/t

[cachukis]

20. So let's spend some money on education. Ha!

[lib2DaBone]

21. and they were mad at Blago for selling one little Senate Seat....

NOTHING is transacted for the good of the taxpayer. Cronyism at its finest. Follow the money..it works everytime.

Taxpayer built roads for sale in Florida to the highest bidder. Tolls to soar with the revenue leaving the State.

I would LOVE to see the names behind the buying, selling and trading of offshore oil leases in Florida. IT would be STAGGERING....

[sasquatch]

25. Florida's economy was bullshit to begin with

[defendandprotect]

27. We need the Dems to get busy with some investigations of these "contracts" ....

Obviously the Bush family has felt very well protected in Florida ---

The key to that protection should be found and thrown away.

How is Florida feeling these days about 2000 --- ????

And, in general, any chance that animosity for Jeb may pick up steam?

[southernyankeebelle]

28. Thats what happens when you get a Bush in Office

They are so worried about getting the religious punch card filled out that they aren't concerned about the people. I don't feel sorry for FL. You got what you deserve. Let's all pray that there is never another Bush in office again.

[clear eye]

29. Looks like Disney runs the state n/t

[Divine Discontent]

35. unlike in CA where people start out at 9+ hr, Disney pays 7.30 to start in FL and there's lots of

fees & taxes living in Orlando (toll roads are horrible & should not be in existence to get around Orlando, there should be higher corporate taxes to pay for the damn roads) and I've noticed much lower fruit & dairy prices here, and I pay the same rent. So, basically Disney controls the state? Sure, in some ways it seems it. They brings in billions in tourist dollars to so many thousands of hotels, non-Disney attractions, and area businesses, and a good amount of guests go later to NASA tours, cruises, etc. after visiting Disney. They pretty much do whatever they want, pay what they want and FL gov't seems to have no leash on them.

[Belial]

30. What about the Obama plan?

One of the areas he had mentioned using to create job growth was infrastructure development. I imagine there will be lots of companies benefiting all across the country.. I would prefer that the companies that we use in the future do know how to make a profit as I don't want to see my money being wasted like I felt it was on Wall $treet..

[whistle]

31. It should be clear that economic crashes don't just happen by chance

....these crashes are engineered and exploited. What is happening in Florida is certainly the case.

[madfloridian]

33. Florida has been a test case, I believe.

For all the policies espoused by Bush and cronies. Let the nation beware, it was a spectacular failure.

[Jakes Progress]

32. This is how neocons accomplish government starvation.

They found that the government could easily afford decent health care and education, but they didn't want government in that business so they had to break the government some other way. They hit on the solution that you have here. In Texas we had the governor working for big pharma by wanting to require the state to buy a vaccine that he wanted to mandate for kids. At the national level we have a war that bankrupts the government, but pays dividends and obscene profits to war profiteers like Haliburton and Carlyle. The bailout seems to primarily funnel tax money to the wealthy. We have grover norquist's wet dream as national policy and state level practice.

[madfloridian]

34. Jeb said he wanted to empty the government buildings.

In so doing he has just about destroyed the economic structure of this state.

[Jakes Progress]

36. But we can be secure in the fact

that the bushes won't ever want for a private jet. It's a zero-sum game. Money taken from children's health care doesn't disappear. It goes somewhere. In this case - to the bush family fortune.