Northwest Florida Business Climate March 2015

SPECIAL SECTION

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A TALE OF TWO COUNTRIES

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SETTING THE PACE

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TRANSFORMATIONAL LEADERSHIP IN A TRANSACTIONAL WORLD

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TRUTH IN AN AGE OF DECEPTION

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AROUND THE REGION nwflbusinessclimate.com | Business Climate | 49

A TALE OF TWO COUNTRIES

AS THE U.S. AND CUBA MOVE WITH CAUTIOUS OPTIMISM TOWARD A MORE FRIENDLY TRADE RELATIONSHIP FOR THE FIRST TIME IN OVER 50 YEARS, THE ECONOMIC AND SOCIAL IMPACT WILL BE THE GREATEST IN FLORIDA, A STATE THAT HAS LONG SERVED AS A HOME FOR THE SMALL NATION’S REFUGEES.

BY JOSH NEWBY

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aybe you’ve heard that Cuba and the United States don’t share the most pleasant of relationships. The past 50 years have been marked by anger, misunderstandings, threats and trade embargos between the two countries, with only brief, tenuous respites punctuating the awkward affiliation.

After Fidel Castro and his followers overthrew then-President Batista’s government in the late 1950s, relations between the US and Cuba disintegrated quickly. Gradual trade regulations were placed on the island, forcing Cuba’s leadership to partner with other Communist nations for necessities like oil. All the while, President Eisenhower authorized the CIA to train and equip Cuban refugees to overthrow Castro, an initiative that would later result in the Bay of Pigs incident. As attempts to neutralize or kill Castro increased over the next several years, relations not surprisingly worsened. In 1962, President Kennedy enforced a trade embargo that included all supplies except food and medicine. In 1981 under President Reagan, the embargo was tightened

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even further and a travel ban re-established.

The Helms-Burton Act was signed into law in 1996, making official and extending the territorial application of the embargo.

After the Cold War and the collapse of the Soviet Union in the late 1980s, Cuba experienced a period of economic destitution even as trade regulations grew tighter. Thanks to the Trade Sanctions Reform and Enhancement Act of 2000, food and medicine exports from the United States to Cuba were allowed with proper licensing from the departments of Commerce and Treasury. Following his election in 2008, President Obama indicated that he would like looser restrictions and to even lift the embargo altogether, assuming Cuban cooperation and political change. In December of 2014, Castro

An American delegation in Cuba that included Amy Miller, Jerry Maygarden and others.

and Obama announced a plan to normalize relations and reopen embassies in Havana and Washington, DC. As of Jan. 16, the limited import (less than $400 worth) of items like Cuban cigars and rum to the United States is allowed, as is the export of technology-related items to Cuba.

All of this begs the question of why we remained a staunch opponent of Cuban trade for so long yet have strong alliances with Communist leaders in China and Vietnam. The answer, according to Jerry Maygarden, who traveled to Cuba in 2002 and has written extensively about the country, is two-fold.

“First, Fidel Castro lives,” Maygarden said in 2002. While most Americans couldn’t identify the Communist leaders of China or Vietnam, Castro is recognizable and has become symbolic of Communist dictatorships. Maygarden argued that a capitalist approach to the marketplace, one in which Cuba would be free to buy from and sell to whomever they please, is one of the surest ways to guarantee the political change the country so desperately needs.

“There are financial interests at work, too,” said Maygarden. Cuba’s 11-million person marketplace pales in comparison to the billions at work in Asian countries.

Whether or not the embargo has actually done

Port, La Habana

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any good is a matter of opinion, of course.

Almost 60 percent of Americans support an all-out end to the regulations while about 25 percent believe they should continue.

The US Chamber of Commerce estimates that the embargo costs the US economy about $1.2 billion a year and 200,000 jobs, and the Cuban economy about $685 million a year, a gap that would ostensibly be discontinued once the embargo ends.

But don’t light your celebratory Cuban cigars just yet, as local trade experts and economists expect the immediate impact to be minimal, at least as long as Castro’s Communist regime remains in power.

According to Rick Harper, economist at the University of West Florida, Cuba represents a buying power slightly larger than the city of Jacksonville.

“I expect the impact will be positive but small,” said Harper. “It is a small country with a low per-capita income.

They simply don’t have a lot of spending power.”

Plus, according to Port directory Amy Miller, who traveled with Maygarden to Cuba in 2002, the United States is one of the few countries on the planet not currently trading with Cuba.

“Over the years, they have learned to get their necessities from other countries,” said Miller. “Even products that we might consider very American, like Apple products, they have gotten from other sources.”

Assuming that Congress does relax restrictions against Cuba, the effect on Florida’s economy will likely be minimal at first.

“We certainly want to have a good relationship with them, but there’s really no benefit to us unless there is a customer down there,” said Miller. “No one is really sure what the loosened restrictions might mean. Can shippers operate on credit?

What will they be able to ship? I don’t see the urgency in rushing down there, but I can imagine that our local lumber industries, and even International Paper, may want to do business down there.”

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Jerry Maygarden meets Fidel Castro.

“Until Cuban people are able to operate in a more free-market economy, their access to American goods and services will be limited.”

Cuba is expected to need building materials, paper supplies, agriculture and medical supplies as the United States works to ensure that the Communist regime is not continued after Castro’s passing.

“Once that happens, our proximity certainly gives us benefits,” said Miller.

“We specialize in large, non-containerized products. It’s no coincidence that GE produces their windmills here and ships them from here. We’re good at that kind of stuff.

As Cuba grows, they will need construction and agricultural equipment that we can ship. Plus, we have a strong history with Cuba. Prior to the embargo, we were one of the largest ports of export to Cuba.”

Making Cuba a truly impactful contributor to Florida’s economy definitely requires that political change, said Harper.

“Until Cuban people are able to operate in a more free-market economy, their access to American goods and services will be limited,” said Harper.

In fact, it is those with traditionally high buying power that are the most economically immobile in Cuba, a symptom of their inverted, Communist economy. Highly skilled workers in Cuba are employed by the state and compensated in pesos. As a result, their buying power, as well as access to goods and services, is limited by the state. However, it is those with traditionally low buying power—waiters, cabbies, and those servicing individuals with foreign money—who are actually more economically mobile. As they are paid often in Euros or American dollars by tourists, these low-wage, often illiterate individuals are the ones who can buy as much as they can afford of whatever they like.

Harper said that, assuming Cuban political change, the country might be facing a brain drain in several years.

“Highly skilled workers will seek to be paid more and may leave the country to go places where their talents are better compensated,” said Harper.

This development would also necessitate eased emigration and travel restrictions.

A loosened travel ban, however, could mean big competition for portions of South Florida, which shares a tourism season similar to what Cuba’s would be. Many northerners travel to South Florida—and

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presumably would travel to Cuba—from December to April. The novelty of traveling to Cuba, as well as the country’s existing European tourism infrastructure would likely appeal to many who would otherwise visit Miami or Ft. Lauderdale.

As a competitor to Northwest Florida, however, Cuba’s potential market share shrinks. Our tourist season is May through August, months that are too uncomfortably hot in Cuba for the country to enjoy any significant type of American tourism. Cubans may, however, want to travel and do business here, as our economy is buoyed by the military and healthcare, two industries not as readily available in South Florida.

So, when might we be able to enjoy a glass of Cuban rum with our Cuban cigars? Miller and Harper estimate that it will happen relatively soon.

“I would expect to see those goods in specialty stores at a relatively high price soon,” said Harper.

Miller said that concrete trade rules and regulations should follow relatively quickly if and when Congress repeals Helms-Burton. Once that happens, it is anyone’s guess how quickly our two countries will be able to enjoy the economic advantages of the other.

LOOSENED U.S. TRADE EMBARGO ON CUBA The Obama Administration recently announced loosened restrictions on trade and investment with Cuba as of Jan. 16, 2015. The rules will allow U.S. citizens to bring less than $400-worth of approved Cuban products back into America.

BIGGEST CUBAN EXPORTS RAW SUGAR $447 million

REFINED PETROLEUM $261 million

NICKEL $253 million

ROLLED TOBACCO $247 million

LIQUOR $118 million

BIGGEST CUBAN IMPORTS REFINED PETROLEUM $369 million

WHEAT $234 million

Cuba sold the most to: COUNTRY

CORN $228 million

POULTRY $200 million

MILK $146 million

Cuba bought the most from: AMOUNT

CHINA $534 million SPAIN $193 million BRAZIL $90 million BELGIUM-LUXEUM $88 million ITALY $56 million

COUNTRY CHINA SPAIN BRAZIL UNITED STATES MEXICO

AMOUNT $1 billion $944 million $568 million $458 million $334 million

Cuban resort Photo: Thomas Leuthard nwflbusinessclimate.com nwflbusinessclimate.com || Business Business Climate Climate || 53 53

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Setting the PACE The 2015 PACE Awards featured more than 400 local professionals and government officials, all gathered to honor and respect the greatest among their ranks who set the pace for community involvement and professional excellence in our region. The 55th annual Pensacola Area Commitment to Excellence (PACE) Awards continues a long tradition maintained by the Greater Pensacola

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Chamber of Commerce. The awards have honored 210 outstanding individuals.

“Northwest Florida is home to some of the most dedicated, talented and selfless community leaders, and we want to ensure that we are recognizing the individuals who continue to make our region a better place,” said Greater Pensacola Chamber President & CEO Clay Ingram.

by Josh Newby The decade’s past PACE-setters A WHO’S WHO OF COMMUNITY MOVERS AND SHAKERS

Bryan Clark Carol Carlan Quint Studer Dr. Judy Bense Rebuild NW Florida Jack Fetterman

2005/2006

Tad Ihns Susan Story Debbie Ritchie Dr. Troy Tippett Gwen Appelquist MJ Menge

Michael Hicks Keith Gregory Dr. John Cavanaugh Dale Knee Impact 100 Group Dr. Tom Delaino

Julie Sheppard Donald McMahon Bill Greenhut Ron Jackson Carl Leahy

Emerging Business Community Professional Spirit of Pensacola Pioneer

2007

Emerging Business Community Professional Spirit of Pensacola Pioneer

Debbie Calder Dr. James Andrews Dr. Coy Irvin Dave & Mary Hoxeng James & Betty Salter

Jim Donatelli Stephen Sorrell Garrett Walton Caron Sjoberg Mike Wiggins Jim Reeves

Jay Bradshaw Larry Strain Kathy Anthony Julian MacQueen Dr. David Conkle

2008

Emerging Business Community Professional Spirit of Pensacola Pioneer

2009

Emerging Business Community Professional Spirit of Pensacola

Brian Hooper Brent Lane Bentina Terry Mark Faulkner Lewis Bear, Jr. Donna Fassett

Jessica Lee Cindi Bonner John Peacock Stan Connally Charles Carlan Dr. Reed Bell

2010

Emerging Professional Community Business Spirit of Pensacola

2011

Emerging Professional Community Business Spirit of Pensacola Pioneer

2012

Emerging Professional Community Business Spirit of Pensacola

2013

Emerging Professional Community Business Pioneer Spirit of Pensacola

2014

Emerging Professional Community Business Spirit of Pensacola Pioneer

The Emerging Leader of the Year award was created to honor an individual who has recently shown significant potential for leadership in business or community endeavors and who is expected to continue having a positive impact in the area. The award went to Jonathan Griffith, the executive vice president of the Pensacola Blue Wahoos.

Griffith’s achievements include helping manage one of the city’s most successful franchises, which is soon to welcome its millionth fan. Griffith also serves on boards such as Chain Reaction and stays active in the community, helping those outside his immediate industry.

“We don’t win a lot,” joked Griffith. “But the Pensacola Blue Wahoos are not just about baseball, but about improving the quality of life in Pensacola. I hope people see that when they enjoy our games. We want to engage the community and our fans.”

The Professional Leader of the Year award is designed for a person who has made a difference and contributed to the success of their profession by distinguished service to their trade. According to the award requirements, the individual must also be held in high regard for their stature, integrity and inspiration to others.

Former Oakcrest Elementary School principal Denny Wilson was honored as the Professional Leader of the Year for his efforts nwflbusinessclimate.com| |Business BusinessClimate Climate| |55 55 nwflbusinessclimate.com

that eventually led to his school receiving an “A” rating for the first time in its history.

Wilson was also named the Escambia County School District’s Principal of the Year in 2013.

“I appreciate so much this honor,” said Wilson. “I need to give it to the amazing faculty fighting the good fight at Oakcrest. The purpose of what these teachers do is hope for so many in the community. We’re here for the people living in the streets and neighborhoods that we sometimes forget exist. We help people go from good to great. Everybody has purpose and everybody is special.”

The Community Leader of the Year award goes to a professional who has distinguished themselves through outstanding contributions in the form of a special project on behalf of the area. This person must also exemplify the true spirit of service. No one exemplified those ideals more in 2014 than Beverly Zimmern, a former mayor of Gulf Breeze and the first female mayor ever in the two-county area.

Zimmern oversaw a $17 million municipal budget, managed the City during several major disasters and developed a comprehensive master city plan that involves the replacement of the Pensacola Bay Bridge. Zimmern was described as community-minded and Gulf Breeze-centric. She dealt with the oil spill, the upcoming replacement of the Pensacola Bay Bridge and more, all while serving for just $1 a year.

“It’s so humbling to be standing on the shoulders of so many people who came before me,” said Zimmern. “I could not have done what I did without my city manager, the mentoring of so many, and the help of people at my table. We have great investors in our community. We are growing. We are the little engine that could, regardless of the bumps in the road.

I accept this award on behalf of all the citizens of Gulf Breeze.”

The Business Leader of the Year award goes to an individual as recognition for outstanding success in business or industry through the development of a new process, product or service. The award also recognizes those who have made meaningful contributions to the local business community. Dr. Sunil Gupta, who is regarded as a top retinal surgeon, was named Business Leader of the Year for his research and clinical trials that have paved the way for several advancements in retina treatments and therapies worldwide.

Dr. Gupta has been responsible for exploring new practices, creating new protocols, designing new surgical tools and more. Dr. Gupta is regularly praised for his patient focus, which includes changing the lives of more than 7,000 individuals. His Retina Specialty Institute has grown to 23 locations and is one of the largest organizations of its | BusinessClimate Climate| nwflbusinessclimate.com | nwflbusinessclimate.com 5656| Business

“

It’s the people that make the real difference—the people you serve and the people you serve with. It’s been my great honor to experience that. This city has heart and I’m just glad to be a part of it.

”

kind in the country.

“Even though I’m a retina specialist, I was in the dark about this award,” said Gupta.

“I’m very humbled. Healthcare is changing, but the patient is always first and we design models around that patient. That’s the way it should always be and it’s that ideal, and my family, that have led me where I am today.

Healthcare’s success in Pensacola is proof that we can be great and world-class.”

The Spirit of Pensacola award, given to an individual who embodies the city’s giving and innovative nature, was awarded to Eric Nickelsen for his lifetime service to the local business and professional community. A key player in the merger between Whitney National Bank and Hancock Bank, Nickelsen is a founding partner of Sperry Van Ness - SouthLand Commercial Real Estate and continues to support several local nonprofits. Nickelsen has won multiple community awards and continues to be one of the most sought after regional advisers.

“You’re not supposed to get an award for something you’re supposed to do,” said Nickelsen. “You’re supposed to give back and that’s all I’ve done. All the winners have given back as well and I’m blessed to be part of this community. You have to surround yourself with people smarter and better than you and that’s all I’ve done. I’m really able to be active

in the community because of my family and friends. We need to keep making this community great.”

The Pioneer Award was established in 1978 and honors individuals who make significant contributions, provide leadership with lasting impact and demonstrate a lifetime of commitment to progress for the area. Jerry Maygarden is just such an individual, and serves as president of the Greater Pensacola Chamber Foundation.

Maygarden was honored for his distinguished, professional career and lasting impact to Northwest Florida. A former mayor of Pensacola, Maygarden served as a state legislator in the Florida House of Representatives, as well as the president and CEO of the Greater Pensacola Chamber. Maygarden’s motivation was cited as a driving force for the area’s continued success. He is a Vietnam vet, has served on City Council and various healthcare boards, and founded the local chapter of the Ronald McDonald House Charities. He previously won the 1988 Community Leader of the Year PACE Award.

“In public service, you push a rock up a hill everyday and every night it rolls back down,” said Maygarden. “You start all over the next day. The one thing that inspires you each day to get out of bed and push that rock again is the people, whether they live in Brownsville or East Hill. It’s the people that make the real difference—the people you serve and the people you serve with. It’s been my great honor to experience that. This city has heart and I’m just glad to be a part of it.”

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Photos courtesy: Highways Agency

TRANSFORMATIONAL LEADERSHIP IN A TRANSACTIONAL >>>>

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W

WORLD

e’ve all been there: feeling obligated to do something professionally or personally only because of what we can get out of it. This type of titfor-tat transactional relationship is not only unsustainable, but it is not beneficial to the long-term loyalty of either party. You only put into it what you get out of it, because you are only doing the work to reap the reward.

It can be tempting in today’s world and today’s economy to set forth concrete expectations and reciprocal rewards and punishments. It’s easier and less time-consuming.

In the long run however, experts argue, followers will not only experience burnout and frustration but leaders will begin to see subordinates as functions of labor instead of fully formed individuals.

This type of transactional leadership, like its name suggests, is a leadership style that depends on rewards and punishments as methods of inspiring followership. Where transactional leadership is largely disadvantageous for both parties, there are some benefits to the idea, such as clearly defined goals, explicitly articulated agreements regarding what the leader expects from organizational

members and how they will be rewarded for their efforts and commitment. This leadership style only works on employees who are not self-motivated, though. When dealing with mature, attentive, and ambitious followers, this theory can be alienating.

Transactional leadership’s far more effective counterpart can just as productively facilitate these pros.

Transformational leadership, likes its name entails, transforms leaders and followers alike by increasing their performance, morale, and organizational buy-in with a number of methods. This theory is useful when an engrained culture may have fostered laziness or when individuals are lacking the motivation necessary to bring a vision to life.

Scholars today believe that transformational leadership has the power to enact real change not only in people, but in the culture.

Leaders can get more out of their followers in this way and benefit the organization as a whole. This leadership process happens when one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality. It is for this reason that transformational leadership is seen as distinct from and superior to transactional leadership. Transformational leadership has a powerful influence on follower loyalty and admiration because the leader offers his or her subordinates a sense of purpose.

There are four basic elements that must be in place to be a truly transformative leader: • Idealized influence: Leaders build trust by adherence to a set of core

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•

values and ethical principles that inspire followers. Even when times get tough, norms are adhered to. Within this element, transformational leaders behave in admirable ways and transmit charisma. They increase employees’ feeling of competence by expressing high expectations and by voicing confidence that those expectations can be met. By listening to the follower’s concerns at each stage of the work process, employees begin to feel that their boss really cares, thus promoting greater organizational commitment.

Inspirational motivation: The transformational leader must set forth a clear vision, communicating expectations for his or her followers and inspiring them to achieve that vision.

In this step, leaders should emphasize the importance of building work capabilities and enhancing their knowledge, skills and abilities. By promoting senses of vision and stimulating learning activities, they foster performances that exceed ordinary expectations. But the leader must also create a shared sense of purpose between employees, too, so that they do not feel the need to compete with and undercut each

•

•

other. By working to increase social identification within the group, bosses boost a pride in belonging and place a value on membership within the team.

Some ways to do this is through the use of work rituals, slogans and teambuilding activities.

Individualized consideration: This occurs when the leader takes an interest in each of the followers’ individual needs as a person, not just their role in the organization. Ironically, this motivates employees to look beyond their immediate self-interest to contribute to the broader organizational vision, assuming relevant mentoring and coaching is in place to enable that contribution. When this happens, workers understand the importance of the greater good and will often put into the job more than they get out in order to help the organization and its members, with which they feel a strong sense of belonging.

Intellectual stimulation: This step prioritizes autonomy and creativity within followers, letting them know that the leader supports their decision-making and individual efforts.

This in turn leads to innovations that

benefit the company and problemsolving strategies that save time and money. Challenging (not seemingly impossible) work can motivate employees who have bought into the organization’s mission and creates a renewed sense of self-efficacy and accomplishment when the task is complete.

Paramount to transformational leadership is authenticity. These strategies may work in the short-term for bosses who only seek to glean their benefits, but it will backfire in the long run as employees sense that leadership is only out for their own good.

Authentic transformational leaders challenge assumptions, take risks, and actively solicit followers’ ideas. They stimulate and encourage creativity, nurturing and developing their subordinates and turning them into independent thinkers. For such leaders, hardships are challenges and setbacks are seen as opportunities to learn. Followers in turn are encouraged to ask questions, think deeply about facts and develop better ways to execute their tasks.

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Saturday, March 21 10am–2pm

wsre.org

Meet your favorite PBS KIDS characters!

Clifford the Big Red Dog • SuperWhy Cat in the Hat • The PBS KIDS Curious George & The Man with the Yellow Hat!

Create, explore and play!

Crafts • Scavenger Hunt • Bounce House

Discover Gulfarium fun!

Dolphin & Sea Lion Shows • Animal Exhibits • Aquariums

1010 Miracle Strip Parkway SE Fort Walton Beach Ticket Information: www.Gulfarium.com Sponsored by:

A portion of the proceeds from entrance fees will benefit WSRE, PBS for the Gulf Coast.

60 | Business Climate | nwflbusinessclimate.com 4729-0215 WSRE PM-BC March FP ad.indd 1

2/18/15 1:54 PM

Truth in an age of deception

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In an age of misleading projections, deceptive politicians, and pundits whose only contribution is adding noise to the political echo chamber, factchecking services are perhaps more important than ever. The investigative journalists who work at these organizations cull through every press release, every stump speech, every campaign ad from numerous presidential and gubernatorial candidates to all 535 members of Congress. (Sorry, Ted Cruz, but the number of Americans not working is 6 million, not 92 million). And nobody does it better than the folks over at factcheck.org, a nonpartisan, non-profit consumer advocate for voters.

Northwest Florida’s Business Climate had a chance to speak with director Eugene Kiely about the nature of modern American politics and truth

by Josh Newby

telling at a recent Tiger Bay Club luncheon. nwflbusinessclimate.com | Business Climate | 61

Have you found that your own political leanings have changed or evolved with this job?

No, only because my political leanings have always been all over the map. I come from a background of being a political reporter for many years and I know that there are good people in both parties. There are people who are out for their own agendas on both sides. I don’t see that through a partisan prism. I’m really kind of all over the map when it comes to that personally. What’s been an eye-opener and education for me being at FactCheck is that we strip away everything, so we look at just a statement being made. When you do that absent anything else, it’s really being partisan-blind. You get to the point where you don’t even know which party is saying it. You’re just looking at the statement.

Photo by Mark Taylor

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“Be skeptical. Be openminded. Listen critically when you’re listening.

People have a tendency to be less critical of opinions that align with their own.”

Has your position ruined your view of government or made you skeptical of politics?

Not at all. We have a motto to be skeptical but not cynical. Actually my faith has been restored at FactCheck. Since I have been doing this a long time, I did get cynical working at The Philadelphia Inquirer covering the governor of New Jersey at the time, because a lot of people around him wound up going to prison. It was very discouraging to see that despite what we were doing in the media and writing about his administration and the people around him, nothing was being done. He actually ended up leaving office after I left. Being at FactCheck, your faith is restored. For me, the response we get from people is just tremendous. We have 80,000 subscribers. The emails we get that are like, “I’m a democrat, but I agree with what you wrote about President Obama” are encouraging. Usually I hear criticisms from liberals like, “You’re liberal, you’re this or that,” but that means that people have a yearning for nonbiased information as a foundation of knowledge. That’s what people really want and we’re in a position to give it to them.

You recently unveiled SciCheck, which is a science-checking service. What do you find to be the most contentious scientific issue of the day?

We only just started this at the end of January, but we’ve already written about climate change, about vaccinations. Time will tell, but obviously there has been a lot written already about climate change and a basic misunderstanding of science and that’s what we’re trying to do is convey the truth. We just did a tremendous piece on fruit flies, which I had no idea were so important to understanding human health because of the genetic makeup fruit flies have. They wind up being used in so many research projects that have been awarded four Nobel prizes. There was a joke by Sen. Rand Paul about fruit flies and it displayed a lack of understanding of what science does. I mean, that’s what we’re trying to do with SciCheck—explain what scientific research does and how it benefits human health.

How do you feel that scientific research itself is now viewed through a political lens?

I can understand it from the perspective that it’s very easy with scientific research and literature to pull out information that is very confusing. Pick a topic—cholesterol, whatever. I can understand that people would be frustrated and confused by it, and anytime there’s confusion, politicians frankly will take advantage of it for their own partisan agenda. That’s why we’re trying to increase the knowledge base so people have a better understanding of the issues and be more informed and make a better decision for themselves. Throughout my entire career, I’ve

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tried to give people the knowledge they need to make an informed decision.

from the Republicans during the Affordable Care Act debate.

How does your common layperson distinguish between the punditry and truth on these very complex issues?

Be skeptical. Be open-minded. Listen critically when you’re listening. People have a tendency to be less critical of opinions that align with their own; they’ll cut them slack. I would challenge those people to think more critically about the information they’re receiving from people they agree with. Also to be less kneejerk when listening to someone they don’t agree with.

You can see that in Washington now, where one side proposes something, the other side opposes it without compromise. Used to be, one side would criticize, the other side would criticize, and then they’d get together in committee and hash it out and find a middle ground. That hasn’t happened in years with the kind of regularity it used to. Don’t automatically reject or accept what the politician or organization is saying.

Has a politician whose verbiage you have addressed ever confronted you about that or fired back?

Definitely. We got publicly attacked by the Obama campaign because we wrote a piece that had to do with Bain Capital and a TV ad that was critical of Mitt Romney’s years at Bain Capital. They told us we were wrong and why we were wrong, but we had all that information when we wrote the article. We stood by it. On the Republican side, Stuart Stevens for the Mitt Romney campaign was making the claim that Obama was gutting the welfare work requirement, which he was not. Stuart Stevens infamously said, “Our campaign is not gonna be dictated by fact-checkers,” so he shut us down.

Come hell or high water, they were gonna continue that message regardless.

Since you’ve been at FactCheck, what has been the issue with the most misinformation?

Certainly the Affordable Care Act. It’s been remarkable on both sides. The President making the infamous “if you like your plan, you can keep your plan” statement was big for us because we actually wrote about that five years before he acknowledged he was wrong about it. We wrote about it in August 2009 and repeatedly said it was one of our whoppers—we put out an annual ‘whoppers list’—in 2011 and 2012 but yet he kept saying it, until it was proven wrong, which was inevitably gonna happen. With the Affordable Care Act, the democrats were overstating the benefits and minimizing the potential risks and the Republicans were exaggerating the impact of it. The law’s only effects at its core are 5 percent of the population, which is those who have health insurance on the individual market.

Most people get insurance from their jobs, or Medicaid or Medicare or CHIP. So when you break it down, it becomes a very small percentage of the population. So to make it seem like it’s hurting everybody is overstating. Both sides were just relentless.

Do you believe that the party that is not currently in power has a tendency to lie more?

Well we don’t use the word “lie,” because it implies motive. Who knows if they actually believed it to be truth? Did they purposely and deliberately do this? But you are onto something.

I think there is a tendency for politicians who are trailing in the polls to change the status quo.

They want to change the dynamic of the race or the trend line so they will go over the top with their falsehoods. Sometimes it works and sometimes it backfires. It happened with death panels

What do you believe about the state of American politics?

Well it doesn’t seem very good. It’s very polarized. All the polls show that. That is in part because people need to be challenged. People will go to their silos like MSNBC or Fox News and they’re just reinforcing themselves. If you challenge yourself to say that maybe there’s something about this that is good but can be made better, which is what politics used to be, then we can go back to being able to pass good legislation.

FactCheck.org TOP FACT CHECKS Can members of Congress retire and receive their full pay after serving one term?

No. Only senators are eligible for a pension after one term, but it won’t be their full salary.

Did President Obama call for a “new world order” in a speech in Europe?

No. Video of Obama’s speech was edited to change the meaning of what he said.

Is it true that, under the Affordable Care Act, “Medicare will not pay anything” for patients receiving only “observation” care in hospitals?

No. Medicare will pay a significant portion of observation care costs after copayments and deductibles are met. Nothing has changed as a result of the ACA. Does the Affordable Care Act require Medicare beneficiaries over age 75 to be admitted to the hospital by their primary care physician?

No. There is no such requirement in the law.

Is it true that Obamacare provides for opening “free gasoline” service stations for low-income people?

No. This rumor was started by a satirical news story.

Is it true that there are bills in Congress that would exempt members and their

The midterms were an upset for Democrats. Do you attribute that to the spread of misinformation on the Republicans’ part or do you believe it was going to happen anyway?

I don’t know to what extent misinformation impacts the outcomes of elections. There are people who study that. I do know that traditionally in the midterm of a president’s second term, your party is going to lose ground. It happened to Bush in 2006. The dynamic is against you from the start, particularly for Democrats who do a good job of getting voters out during the presidential elections and conservatives who turn out for midterms.

What’s next for FactCheck?

We’re gearing up for 2016. We’re a very small staff, with only five people. We get hundreds of emails and respond to as many as we can.

If we get a dozen or so inquiries about a single topic, we’ll certainly tackle that issue as part of Ask FactCheck. There are other sites, too, that do this, like Politifact and The Washington Post fact-checker. It’s being done on the local level too in places like Arizona.

staffs and families from buying into

Obamacare?

No. Congress members and staffers were required to buy insurance through the exchanges on Jan. 1, 2014.

Do 11 states now have more people on welfare than they have employed?

A viral email making this claim is off base. It distorts a Forbes article that compares privatesector workers with those “dependent on the government,” including government workers and pensioners, and Medicaid recipients — not just “people on welfare.”

Are Obama’s early records “sealed”?

No. Many records that presidential candidates don’t ordinarily release do remain confidential, but they are not “sealed” by a court. The 16 claims in a widely distributed graphic are mostly false or distorted.

Does the Obama administration intend to “force gun control and a complete ban on all weapons for U.S. citizens” through a United Nations treaty?

No. The administration plans to negotiate a treaty to regulate the international export and import of weapons. It says that it won’t support any treaty that regulates the domestic transfer or ownership of weapons, or that infringes on the Second Amendment. nwflbusinessclimate.com nwflbusinessclimate.com || Business Business Climate Climate || 63 63

around the region

The Children’s Hospital plans expansion Sacred Heart Health System has announced plans for a major expansion of The Children’s Hospital at Sacred Heart.

Sacred Heart’s preliminary plan envisions a 4- or 5-story building that will connect to part of the front side of the current Children’s Hospital. Susan Davis, president and CEO of Sacred Heart, said the project is estimated to cost up to $125 million, and Sacred Heart will need to raise $55 million of that from community supporters and donors.

“The need and demand for children’s services is huge and it’s growing,” she said. “We will be building to meet the needs of the children and families of our region.”

The added building would enlarge the hospital’s Neonatal Intensive Care Unit and consolidate other pediatric services in one location. Those consolidated services will include: • A Pediatric Emergency Department, now located in the hospital’s Bayou Tower • Pediatric Outpatient Services • Operating rooms for inpatient and outpatient surgery Sacred Heart Health System is a member of Ascension, the nation’s largest Catholic and non-profit healthcare system. The expansion plan will require approval from Ascension, as well as state and local regulatory agencies. Sacred Heart hopes to begin construction in 2016.

Gulf Power petitions for alternative energy Earlier this year, Gulf Power submitted four petitions to the Florida Public Service Commission for solar and wind projects that could benefit more than 65,000 homes in Northwest Florida. Included in these projects is a proposal to build solar energy farms at three military bases. It is hoped that the solar projects, if approved, could be operational by December 2016 and the wind projects could be ready by December 2015.

All of this is part of Gulf Power’s recent effort to diversify their business and offerings to customers. Traditional fuel sources are becoming more scarce and dangerous to harvest, and Gulf Power sees these proposals as the first step to more affordable and reliable power.

Okaloosa EDC receives funding for UAV center The Okaloosa County Economic Development Council recently announced that it had been awarded a state grant to continue study of a proposed unmanned aerial vehicle test center.

The EDC has partnered with UWF for years to develop the facility, and this grant is another step forward on a project years in the making.

The EDC and the University of Florida signed the memorandum of understanding to continue development on the test center last summer. Funds from the Florida Defense Support Taskforce grant will be used to complete some soil studies and compaction testing at the proposed site of the center to make sure the land is suitable for development.

College administration and faculty association reach agreement Pensacola State College Administration is pleased to announce that the Pensacola State College Faculty Association has ratified the 2013-2014 Collective Bargaining Agreement by a vote of 85-16. Negotiations have been underway since February of 2013.

“We are pleased with the outcome of the ratification vote. We know that we would not be the institution that we are today without the dedication and commitment of our talented faculty and staff,” stated PSC President Edward Meadows. “All of us at Pensacola State College will continue to focus on our mission of providing access to high-quality education and ensuring the success of our students.”

Highlights of the agreement include: • 2 percent raise for faculty retroactive to August 2014 • $60,000 to address compression • an increase in most overload rates • an increased number of teaching hours for some faculty within the 35-hour work week • 4 percent increase to the base upon promotion with four years in rank required for promotion.

64 64| |Business BusinessClimate Climate| |nwflbusinessclimate.com nwflbusinessclimate.com

UWF Haas Center study: Northwest Florida workforces trail country in skills, education The University of West Florida Haas Center recently completed research that suggests metro areas in Escambia, Santa Rosa, Okaloosa and Bay counties have workforces that trail their counterparts around the country in skills and education.

The Haas Center’s findings are presented in its new Job Skills Index, which ranks metro areas by how well they attract and retain educated and other highly skilled workers.

“This is one thing that can affect migration of skilled workers to a region,” said Soheil Nadimi, the Haas Center economist who conducted the analysis. “In areas that rank highly on the skills index, educated workers would be part of a cluster of skilled workers where it is more likely that they could develop professionally.”

Some key Haas Center findings: • The Pensacola area, which includes Santa Rosa County, placed 11th among of 22 Florida metropolitan statistical areas.

The Pensacola area barely beat the average index score for metro areas in the state, but fell short of the average index score for metro areas around the country.

• The Crestview-Fort Walton Beach-Destin area ranked ninth on the list of Florida metro areas, beating both the average state and national index scores.

• The Panama City area came in 15th on the list, with an index score below both the state and national averages.

“Maintaining high average wages is an increasing challenge for Florida,” said UWF economist Rick Harper, who oversees the University’s Office of Economic Development and Engagement. “Some of our fastest business growth has been in meeting the needs of tourist and retiree customers, and these sectors tend to have lower-than-average wages. That doesn’t create the labor force that will draw high-tech, high-wage businesses to the state. We have a pressing need to build skill sets that will earn enough to support families.”

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