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By some accounts, Florida is one of the most improved states to do business in, according to an annual report on the subject from cable business news channel CNBC.
By another look at the same survey, however, the Sunshine State is mired in mediocrity.
To the good, Florida advanced 10 spots on CNBC's America's Top States for Business list, from 28 to 18. The only state that gained more spots was Ohio, which went from 34 to 23. Florida, which finished in a tie for 18th place with Tennessee in the overall survey, also scored a top 10 ranking in three of 10 categories: Work force (second place); infrastructure and transportation (eighth); and access to capital (ninth).
A ninth-place ranking in access to capital, which tracks the flow of venture capital money, is an especially good score considering how average Florida has done in that category in other surveys. The second-place score in work force, which looks at training programs, is also a legitimate source of pride.
But a closer look at the categories reveals some worrisome warts. For one, Florida ranked 47th in the economy category, which measures a state's health by looking at projected budget gaps.
Moreover, the state ranked 40th in the cost of doing business category. That sector looks at tax burden, including individual income taxes, property taxes and business taxes. Since Florida doesn't have an income tax, and its homestead laws limit property taxes to a certain extent, there could only be one culprit there. That category also examined utility costs, wages and rents.
There were more middling scores for Florida, including 35th in education, 31st in quality of life and 25th in cost of living.
But the real headache for economic development officials should be Florida's 26th place finish in business friendliness. “Regulation and litigation are the bane of business,” states the survey. “Sure, some of each is inevitable. But we graded the states on the perceived 'friendliness' of their legal and regulatory frameworks to business.”
Delaware ranked first in the business friendliness category, followed by Virginia, South Dakota and Utah. Virginia ranked first overall. Visit cnbc.com for the full survey.
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