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Mutual Works with Sen. Alexander to Protect Grower Marketing Funds
LAKELAND, Fla. (October 3, 2007) – The Florida grower trust fund that finances citrus marketing programs will not be used to make up a budget shortfall after state Sen. JD Alexander removed it Wednesday as a potential revenue source.
Alexander’s move came after Florida Citrus Mutual and other regional trade organizations asked him to protect the Citrus Advertising Trust Fund which supports Florida Department of Citrus marketing programs. Governor Charlie Crist was recommending that the general revenue charge on the fund be increased to 8 percent.
“On behalf of 8,000 grower members, Florida Citrus Mutual would like to thank Sen. JD Alexander for dismissing the Governor’s recommendation as well as his unbending leadership on this issue,” said Michael W. Sparks, executive VP/CEO of Florida Citrus Mutual. “Although we certainly understand the difficulty in making up a $1 billion dollar budget shortfall, tapping into the citrus advertising trust fund would have had a huge negative effect on Florida citrus growers.”
On Wednesday, the state General Government Appropriations Committee, chaired by Alexander, passed an appropriations bill that doesn’t use additional money from the Citrus Advertising Trust Fund to finance the state budget.
The Citrus Advertising Trust Fund is funded by a tax on citrus growers. The Governor’s recommendation would have taken $2 million out of FDOC coffers.
“It is important to protect the Citrus Advertising Trust Fund because it is different than other Florida trust funds. It is funded solely by taxes levied on citrus growers,” Alexander said. “Florida citrus growers are facing many challenges and asking them to give up $2 million in trust fund dollars is unacceptable.”
Florida Citrus Mutual and regional citrus organizations wrote Alexander a letter in late September asking him to ensure that no money be taken from the citrus trust fund. Alexander is a Florida Citrus Mutual member.
“The Florida citrus industry is facing many challenges including citrus greening disease, the lingering effects of the hurricanes and an ultra-competitive beverage market,” Mutual wrote Alexander. “These challenges have depleted industry resources over the last few years. Asking citrus growers to now give up $2 million in trust fund dollars, which is the difference between 3.3 and 8 percent, could have severe negative consequences on citrus research and marketing efforts.”
Florida Citrus Mutual, founded in 1948 and based in Lakeland, is the state’s largest citrus growers organization with more than 8,000 grower members. The Florida citrus industry employs 90,000 people and has a $9 billion economic impact. Please visit www.flcitrusmutual.com.
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