Florida government could seek billions in oil spill compensation

Bloomberg is reporting that Florida may seek compensation for lost tax revenues and other losses as a result of the oil spill that could total in the billions of dollars:

Steve Yerrid, a Tampa lawyer chosen by Florida Governor Charlie Crist to advise him on legal issues concerning the spill, said the state may seek an initial payment in the “lower range” of billions of dollars to make up for lost tax revenue.

“We’re hoping rather than jobs being sacrificed or services to Floridians being lost, that we can develop some type of dialogue to get interim relief until state claims can be properly calculated,” Yerrid said in an Aug. 17 telephone interview.

State economists announced last week that they expected a slight rise in general revenue, but those estimates did not factor in a decline in tax receipts as a result of the spill.

Amy Baker, chief economist for the Florida Legislature, said the state projects a $5.5 billion budget gap in the fiscal year that will start on July 1. Analysts will update the estimate to incorporate declining tax and tourism revenue, she said.