Finance
Abortion-rights amendment backers want rewrite of finance info on ballot that's now 'outdated' • Florida Phoenix
Within days of a momentous Florida Supreme Court ruling authorizing a referendum to restore abortion rights, the group pushing the initiative rushed to file a lawsuit to ensure that the ballot language describing its financial implications doesn’t mislead voters.
Floridians Protecting Freedom, sponsor of the proposed Amendment 4, claims the financial impact statement now planned “is fatally flawed.”
“First, it largely presents outdated information about the legality of abortion under statutes and litigation unrelated to Amendment 4; second, the inclusion of such information renders it confusing, ambiguous, and misleading; and third, it highlights the potential of future litigation, which is speculative,” the organization said in a 17-page civil complaint filed Friday in Leon County Circuit Court, in Tallahassee.
“Because the [financial estimate] is unclear, confusing, ambiguous, misleading, and inaccurate, voters will be prevented from casting an informed ballot,” the document adds.
In a written statement to the Phoenix, the campaign appeared to play down the significance of the lawsuit, saying the Financial Impact Estimating Conference (FIEC), which drafted the impact statement last November, needs a court order to revise it.
“This is a technical issue, and we look forward to working with the FIEC to resolve it, so voters have accurate information when it comes time to vote on Amendment 4,” the organization said in its statement.
Still, unless the amendment passes (with the constitutionally required 60% of the votes cast), Florida will continue to enforce a draconian ban on abortions conducted after six weeks’ gestation, before many people realize they are pregnant. The ban is set to take effect on May 1.
This appears to be the first time such a situation has arisen, the campaign continued. That’s because on April 1, the same day the court OK’d the initiative for the ballot, it also reversed its own 1989 precedent that the Florida Constitution’s Privacy Clause protects access to abortion. That ruling triggered the countdown to the six-week ban.
Of course, there was no way nearly five months ago for the FIEC to anticipate that ruling, especially in light of the then-pending challenge to the state’s abortion limits, so its members hedged their bets, concluding: “Because there are several possible outcomes related to this litigation that differ widely in their effects, the impact of the proposed amendment on state and local government revenues and costs, if any, cannot be determined.”
The abortion ban ruling, then, “has rendered the current financial impact language outdated and no longer accurate. To our knowledge, this is the first time it has happened that a court ruling following the determination of a financial impact has rendered the financial impact statement inaccurate,” Floridians Protecting Freedom told the Phoenix.
Economic experts
The conference is a collection of economic experts that regularly advises state government. The suit names the panel plus its four members — Amy Baker, director of the state Office of Economic and Demographic Research, Vince Aldridge, staff director for the House Ways and Means Committee; Azhar Khan, staff director of the Senate Finance and Tax Committee; and Brea Gelin, a chief analyst in the Executive Office of the Governor — plus Secretary of State Cord Byrd.
“Under current statutes, the FIEC may not be able to reconsider the financial impact statement without a court order, so Floridians Protecting Freedom is filing a lawsuit, simply to compel the state to ensure the financial impact statement accompanying the ballot summary of Amendment 4 is accurate. This is a technical issue, and we look forward to working with the FIEC to resolve it, so voters have accurate information when it comes time to vote on Amendment 4,” the campaign told the Phoenix.
As with all proposed constitutional amendments, the financial estimate will appear on the ballot along with a summary of what any amendments would do. The idea is to give voters the best possible assessment of how an initiative would affect taxpayers.
That existing language won’t do, the new lawsuit complains:
“First, it largely presents outdated information about the legality of abortion under statutes and litigation unrelated to Amendment 4; second, the inclusion of such information renders it confusing, ambiguous, and misleading; and third, it highlights the potential of future litigation, which is speculative.”
Fresh language
The text of the proposed “Amendment to Limit Government Interference with Abortion” says: “Limiting government interference with abortion. — Except as provided in Article X, Section 22, no law shall prohibit, penalize, delay, or restrict abortion before viability or when necessary to protect the patient’s health, as determined by the patient’s healthcare provider.”
Now that the state Supreme Court has settled the ambiguities the group wrestled with, the financial statement needs rewriting, the complaint says.
“The 6-week ban will be in effect at the time of the election, so to accurately reflect Amendment 4’s probable financial impact, the [impact statement] must reflect that reality,” it notes.
It suggests fresh language:
“The Florida Financial Impact Estimating Conference estimated that this proposed amendment will result in decreased costs to state government, no impact to local government revenues or costs, and an overall positive impact to the state budget.”
Floridians Protecting Freedom asked for a quick ruling.
“Time is of the essence, and this matter should be expedited because the ballots for the 2024 General Election will be mailed to voters starting as early as September 21, 2024. … The ballot’s design must necessarily be finalized, and the ballots themselves printed, before then,” the complaint argues.
According to conference’s analysis, the state recorded 46,011 abortions up to six weeks’ gestation during 2022, or 55.7% of the total of 82,851 that year. There were 81,269 conducted up to 15 weeks’ gestation.
For that reason, the document forecasts broader savings for state and local governments if the amendment passes while the six-week ban remains law, because there would be fewer children going to school, participating in social services, or otherwise drawing tax money. But it gives no hard numbers.
“The FIEC has already developed the financial impact analysis for a scenario that the 6-week ban is in place — Florida’s current reality — so they do not need to revisit their analysis. However, their summary of that impact, which all voters will see, is now inaccurate and needs to be updated to reflect the current reality,” the organization told the Phoenix.
Finance
Assess your financial risk before new policies affect the economy
I’ve been thinking about financial risk lately.
Should I change my asset allocation in my retirement portfolio, considering Donald Trump’s successful bid for the White House? Stock market valuations have risen smartly in recent years, which real income growth, productivity improvements, technological innovation, low unemployment rates and healthy corporate profits have largely powered. Yet with the election of Trump, voters have approved a massive economic experiment.
The Trump administration comes into power with many policy goals, but four economic initiatives stand out: Enacting significant tax cuts; imposing broad-based and significant tariffs; sweeping raids, mass deportations and tighter immigration controls; and slashing federal government regulations. The extent that these plans turn into reality and how each policy will interact with the others is uncertain. The risks are obvious. The outcome isn’t.
Enter risk management, a critical concept in finance. Professionals often associate risk with volatility. The tight link makes sense, since owning assets with high volatility hikes the odds of losses if there is a pressing need to sell the asset to raise money.
However, for the typical individual and household, risk means the odds money decisions made today don’t pan out. Managing risk means lowering the negative financial impact on your desired standard of living from decisions gone wrong and when circumstances take an untoward turn.
“Anything that makes reaching or maintaining that more likely reduces your risk, and anything that makes this less likely increases your risk,” writes Bob French, the investment expert at Retirement Researcher. “Everything else is just details.”
The key risk management concept is a margin of safety, a bedrock personal finance idea broader than investment portfolios. It can include having an emergency savings fund, owning life insurance to protect your family and investing in your network of friends and colleagues to hedge against the risk of losing your job. The right mix depends on the particulars of your situation.
In my case, after studying my portfolio, running household money numbers and reviewing lifestyle goals, I’m comfortable with the asset allocation in my retirement portfolio. There is too much noise in the markets for comfort, and market timing is always tricky. The prudent approach with my individual situation is to stay the course.
Finance
Shannon Bernacchia Appointed Interim Finance Director for Regional Schools – Amherst Indy
At a Zoom meeting on Friday, November 22, School Superintendent Dr. E. Xiomara Herman recommended to the Regional School Committee and Union 26 School Committee that Shannon Bernacchia be appointed interim Finance Director for the schools, replacing Doug Slaughter who had served in that position since 2019. Bernacchia has served as Assistant Finance Director under Slaughter. Her appointment was approved unanimously by both school committees.
In recommending Bernacchia for the interim director position, Herman cited her “impressive career, dedication, and accomplishments during this transitional period [to a new administration],” adding, “Since joining our district, she has demonstrated exceptional proficiency in managing complex financial operations, including preparing budgets, overseeing audits, and providing detailed financial reporting to the school committee.”
Bernacchia holds a Bachelors Degree in Business Management from Bay Path University and professional training in school fund accounting. She currently holds an emergency School Business Administrator license valid through 2025 and has completed all requirements for her initial license, except for the 300 hours of mentorship. She anticipates completing that requirement in January, 2025. Former Amherst Regional Public Schools and Town of Amherst Finance Director Sean Mangano is serving as her mentor.
Herman expressed confidence in Bernacchia’s ability to head the district’s financial operations.
In acknowledging her appointment, Bernacchia thanked the school committee members and said that she was excited to work with superintendent who is woman.
Finance
US SEC obtained record financial remedies in fiscal 2024, agency says
NEW YORK (Reuters) -The U.S. Securities and Exchange Commission obtained $8.2 billion in financial remedies, the highest amount in its history, in fiscal 2024, the agency said in a statement on Friday.
The SEC filed 583 enforcement actions in the year that ended in September, down 26% from a year earlier, it said in a statement.
The $8.2 billion in financial remedies included $6.1 billion in disgorgement and prejudgment interest, a record, and $2.1 billion in civil penalties, the second-highest amount on record, according to the SEC’s statement.
Much of the total financial remedies came from a single action: a $4.5 billion settlement with the now-bankrupt crypto firm Terraform Labs, following a unanimous jury verdict against the firm and its founder Do Kwon. The SEC is expected to collect little of that settlement amount because it agreed to be paid only after Terraform satisfies crypto loss claims as part of its bankruptcy wind-down.
The SEC also obtained orders barring 124 individuals from serving as officers and directors of public companies, the second-highest number of such prohibitions in a decade. Holding individuals accountable for misconduct has been a priority of the agency under Chair Gary Gensler, who is stepping down in January.
“The Division of Enforcement is a steadfast cop on the beat, following the facts and the law wherever they lead to hold wrongdoers accountable,” Gensler said in a statement about the agency’s 2024 enforcement results.
(Reporting by Chris Prentice; Editing by Leslie Adler and Jonathan Oatis)
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