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Money (Or Lack Thereof) Will Dominate Legislative Session

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By DAVID ROYSE / Associated Press

Published: February 25, 2008

TALLAHASSEE - The people running government can have all kinds of ideas, but what government does or doesn't do often comes down to whether there's enough money.

And this year, more than in any other year in recent memory, nearly everyone says there won't be. For only the second time in at least three decades, the state budget this year will be smaller than last year's.

That means everything lawmakers try to do will run into a difficult reality. Some agencies and groups that depend on state money may lose it, making for a somber session in which champions for government programs will have to fight to keep them afloat.

"There's going to be blood on the floors this session," said Senate Democratic Leader Steve Geller of Cooper City. "There are going to be some very, very harsh cuts."

Gov. Charlie Crist wants to avoid some of the tough cuts by dipping into normally reserved funds to tide the state over and by relying on new money from gambling. A deal Crist struck with the Seminole Indians will mean $131 million that plugs some budget holes. Crist also wants to boost money coming in from the Lottery by nearly $250 million through more advertising, vending machines and other sales-increasing tactics.

Those ideas don't play well in the House, however, which has challenged the compact with the Seminoles. House Speaker Marco Rubio, meanwhile, said increasing Lottery sales exploits poor people who can least afford to gamble and that dipping into reserves is like trying to plug holes with money that won't always be there.

"If we do it that way, all we're doing is just passing the problems on to the next generation of leaders," Rubio said. "We'll just become a state of perpetual budget problems."

When money is tight, the state should cut spending, said Rubio, R-West Miami.

The money situation will bleed over into nearly every other debate in the Legislature, including big costs like health care and education.

Crist has said he wants to provide health care to those without insurance and has proposed an outreach program to deliver health care to the poorest neighborhoods. He also proposed a plan to offer lower cost insurance to people willing to accept no-frills policies.

Lawmakers will also likely consider trying to expand the number of children covered by the state's low-cost, subsidized insurance program known as KidCare — another thing that requires money.

Then there's the high price of education — a cost that has grown because voters put class-size limits in the state constitution in 2002. Lawmakers this year are trying to figure out a way they can loosen those rules without changing the constitution in an effort to free up money.

Education and health care are essentially requirements, and there's little lawmakers can do to avoid spending on them. Where the budget crisis may have the biggest impact is over lawmakers' wants.

For Crist, a major priority is reducing Florida's greenhouse gas emissions. It's not the most expensive proposal, but he's already facing some resistance in the House. His proposals to give $100 million to companies that do green technology research, and spend another $50 million on various renewable energy programs and rebates may run up against budget constraints.

Of course, what is a want and what is a need is often a matter of debate.

Florida's university officials say they need smaller classes if they're going to remain competitive with other states and be able to educate all of Florida's qualified students. They're asking for $200 million more a year above their current budget, with some of that coming from a tuition increase. Senate President Ken Pruitt and Crist are against a tuition increase.

So if the wants and needs aren't getting smaller, is there any way to boost the state's income?

The Republican-dominated Legislature isn't likely to increase taxes. But Democrats have suggested that taxes might need to be raised somewhere — even if it's just getting rid of some tax exemptions. One Democratic lawmaker has proposed an increase on the cigarette tax, but most Republicans are more interested in tax cuts.

Although voters changed the constitution in January to give themselves a property tax break, leaders in both chambers of the Legislature say that it didn't go far enough and was just the beginning.

Businesses are also clamoring for additional tax relief. The Florida Chamber of Commerce has tax cuts at the top of its agenda, and will be pushing for a measure to require a limit on local taxes.

Not everything the Legislature does will be totally related to the budget.

Lawmakers are looking to expand a voucher program that allows poor children to attend private schools through corporate tax credits. Single-gender classes and schools also are expected to be debated.

Meanwhile, the issue of property insurance just won't go away. Rates went up after the busy hurricane seasons of 2004 and 2005, and many homeowners say they can't afford the hike. A special committee has grilled insurance executives on why premiums haven't gone down as much as lawmakers had hoped for after a measure passed last year. Bills to try again to reduce insurance costs are expected this year.

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