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Florida's Fiscal Crisis Demands Political Courage

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The Tampa Tribune

Published: December 17, 2008

Florida Senate President Jeff Atwater and House Speaker Ray Sansom obviously are in denial. In setting a January special session to deal with the state's financial crisis on Monday, they retreated to the same old way of doing business - pledging only to target "spending reductions and trust fund transfers."

They're showing an appalling lack of leadership at a time when the state needs it most.

The state is facing an estimated $2.3 billion budget deficit. Next year the hole is expected to be bigger - about $3.8 million. This comes after lawmakers already cut $6 billion from state coffers in the last 18 months, greatly impacting, among others, the disabled and developmentally delayed, and state parks. It's perfectly fair to question the wisdom of further budget cuts, which could harm quality of life even more.

Juggling funds from one fund to another and continuing to reduce services to the state's residents is not the way to get Florida out of this dilemma.

Nor is raiding the Lawton Chiles Endowment Fund, which some lawmakers want to do. The fund provides recurring funding for programs for needy children and the elderly.

The Legislature needs to drum up some courage and face the reality that the state needs more revenue.

There are possibilities at their fingertips. First, it is imperative that lawmakers analyze the numerous exemptions to the state's 6 percent general sales tax, except those on such crucial items as food and medicine. These include exemptions for "fish breeding," stadium skyboxes and tickets for certain sporting events, among many others.

These breaks often only benefit special interests. Taking them away does not amount to a tax increase.

As Chief Financial Officer Alex Sink told the Miami Herald earlier this week: Somebody "ought to have to stand up and defend why this exemption is legitimate and fair, or it's not."

The Legislature also should sign and ratify the gambling compact Gov. Charlie Crist negotiated with the Seminole Tribe of Florida. That could net the state as much as $100 million a year for the next 25 years, specifically $375 million over the next three years. This is not the time for quibbling or bemoaning that gambling is expanding. Gambling on the Seminole property is going to occur - with or without the compact. It would be a valuable source of revenue.

Tax increases should be a last resort, after a review of sales tax exemptions and approving the gambling pact. Adding 50-cents to $1 to the tax on a pack of cigarettes is fair. It would serve as a deterrent to smoking, especially among young people, save lives and reduce health-care costs.

In addition, lawmakers should consider increasing the tax on alcoholic beverages. While the taxes on wine and liquor - from $2.25 to $9.53 a gallon - seem reasonable, the 48-cent levy per gallon of beer could be increased a bit.

The state is in crisis. Raiding trust funds is not going to pull the state out this fiscal abyss.

Florida needs elected leaders with the spine to make painful budget cuts and increase fees and taxes in those areas where it is justified. But so far Sansom and Atwater only seem interested in looking for an easy way out.

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