Editor's note:  Contributing Columnist, Steve Nicklas, expresses his views and insights on various topics of local interest in Steve's Marketplace _______________

When the engine blows, it doesn't matter who drives or makes or services the car. It's going into a permanent pit stop.

In racing parlance, it could be Jeff Gordon (driver) or a turbo-charged Toyota (make) or the Penske racing team (for service). Once the engine is rebuilt, however, it can rejoin the action.

The state of Florida has entered a long-term pit stop. The engine of growth -- the real estate market and its byproducts -- has sprung a leak and is spewing an oil of contraction. In fact, Florida state officials are forecasting a shortfall of $30 billion in taxes over the next four years.

There are important decisions to be made about　which direction to take.

The state benefits in various ways from Florida real-estate transactions, such as through documentary stamps. This is a Florida state charge amounting to 70 cents of every $1,000 of a real estate transaction (a $200,000 transaction results in $1,400 of doc stamps). Also, the construction process yields profits by the way of permits and fees.

The bountiful Florida real-estate machine has ground to a halt in this once-in-a-lifetime recession. In response, state officials are trying to figure a way out of a downturn that has squeezed tax revenues. Even the population growth of Florida has taken a respite.

For the first time in a long while, more people have moved out of Florida than have moved to the coveted Sunshine State. That wasn't supposed to ever happen, was it?

Nassau County, Florida government officials have lamented about the same development. Applications for building permits here have declined precipitously; often, county and city building departments operate mostly on what they bring in through permits and fees.

But there is more. A major initiative has been gaining momentum through the grass roots of the state. It's called Hometown Democracy. Here, a statewide referendum is being sought (there are more than 1 million petitions to have the issue placed on the 2010 ballot) whereby residents will decide whether the state essentially should continue along its path of over-reliance on the real-estate market, or diversify its major revenue streams.

Another faction will seek a "Smart Growth" initiative. This will essentially support the current system and define ways to rise out of the real-estate-driven quagmire. This is　basically an endorsement of　status quo.

Proponents of the popular Hometown Democracy amendment feel the same after effects witnessed in Nassau County are being seen elsewhere - vacant subdivisions, empty storefronts and half-finished projects. Through the amendment, the public would have a greater say in decisions about real estate　issues such as　zoning.

Under the current format, such decisions are made by county/city planning and zoning boards. The decisions are supposedly based upon public feedback and best interests, but the process often fails miserably.

This is not to cast a vote for the Hometown Democracy initiative. Critics contend that it has been tried before (in St. Petersburg, Florida for instance) and it has caused inadvertent delays and inaction. Also, you have to wonder how many people will turn out to vote on such issues when they come up, or will it be done solely by people in the construction/ development arena anyhow.

There are no easy answers to Florida's difficult financial environment. We can try a new system, or amend the current one. Or we can change drivers (our elected officials) and rebuild through other means.

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(Steve Nicklas is a financial advisor who lives on Amelia Island. He can be reached at 904-753-0236 or send eMail to thenicklasteam2@msn.com.)