Recession over, but not to some Florida lawmakers

TALLAHASSEE, Fla.— Three renowned economists agree Florida's boom days are over and that the state's recovery from the recession is likely to take awhile.

Economist Kevin Hassett of the American Enterprise Institute said Thursday that Florida is one of the states facing difficulty going forward following a 20-month national recession that wreaked "an astonishing period of economic misery."

Hassett told lawmakers that even if the recession was declared over in August, the risk of calamity remains.

"Gloomy," state Sen. Evelyn Lynn, R-Ormond Beach, said afterward. "What to do?"

The Florida Legislature convenes its annual 60-day session on March 2 confronted with a $3 billion budget hole. Unlike Congress, the state lawmakers by law must pass a balanced budget.

University of Florida economist David Denslow said a big part of the Florida economy over the next 20 years will be providing services for some 3.5 million "baby boomers" retired in the state.

"There's just not going to be a massive rebound," said Denslow, noting Florida's economy will remain sluggish from the hangover in a housing market where nearly a third of homes are worth less than the amount of the mortgage.

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Recession over, but not to some Florida lawmakers - Gainesville Sun - January 15, 2010