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Governor Mortgages Tomorrow To Minimize Pain Of Today

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The Tampa Tribune

Published: February 12, 2008

In a sluggish economy, Gov. Charlie Crist is offering a budget that taps deeply into reserves to build what he calls a "bridge to the future." By gambling that an economic rebound is coming soon, Crist avoids making the tough choices circumstances require.

His spend-now, worry-later bridge also misleads taxpayers who aren't paying close attention. For months Crist's big emphasis has been on tax cuts for property owners; specifically, cuts in tax revenue for local governments.

But his budget violates the spirit of promised cuts by increasing the state's property-tax bite for schools by $338 million. That increase could reduce the small tax reduction some property owners expect to see next year.

Worse, the governor has shown no extraordinary effort to rein in spending.
Budget analysts at Florida TaxWatch, an independent think tank, are combing through the budget to help Crist identify possible cuts. One example, says Dominic Calabro, president of TaxWatch, is that most state agencies have a director of communications, deputy director, press secretary and support staff.

"How many assistants and deputies do you need?" Calabro asks. Crist's budget, which makes no cuts in payroll, says we need them all.

To pay for them, Crist would take $1.1 billion from the state trust funds, reducing reserves by about 20 percent. Using trust funds to pay recurring expenses is a slippery slope he will likely face again next year. The federal government treats the Social Security Trust Fund the same way - raiding the fund for today's expenses, with little regard for the obligations of tomorrow.

Crist's proposal would leave the state less prepared should a real emergency arise. And his budget-balancing act could result in higher costs to the public.

One example arises from the Workers' Compensation Administration Trust Fund. By grabbing a handful of cash from the fund to help build his bridge, Crist raises the possibility of higher assessments on employers next year, a move that would be bad for business.

Chief Financial Officer Alex Sink warns that over the past eight years, careful attention to costs and other reforms have helped cut workers comp assessments by 91 percent. Yet because of the proposed shell-game funding, assessments could be going up again by next January.

Crist inherited a state government that has enjoyed many years of revenue increases, which provides plenty of opportunity for cosmetic additions to agency budgets.

Now that the revenue outlook is ugly - the state's first consecutive drop in annual revenue in more than 37 years - Crist needs to focus on the core mission.

What is required of the governor in such tough times is a tone of restraint and sacrifice. This is the year to crack down hard on expenses, seek new efficiencies in every department and trim the state payroll.

Crist's budget tells us not to worry, and that's not the least bit reassuring.

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