TBO.com - TBO is Tampa Bay Online

Stimulus The Key In Crist's Budget

ADVERTISEMENT

By CATHERINE DOLINSKI

cdolinski@tampatrib.com

Published: February 21, 2009

Updated: 02/21/2009 12:11 am

TALLAHASSEE - State spending would grow and property taxes drop under a new budget proposal from Gov. Charlie Crist that relies heavily on a handout from the federal government.

Crist proposes using $3.2 billion in federal stimulus dollars this fiscal year and $4.7 billion in 2009-2010 to boost Florida's current $65.5 billion budget to $66.5 billion in 2009-2010. The governor has estimated that the federal spending plan includes $12.2 billion for Florida over three years, though some is earmarked for local communities.

"This package is good news for our state - actually, it's great news for our state," Crist said. "I strongly encourage the Legislature to incorporate these stimulus dollars to supplement our budget and help the people of Florida."

Included in his plan is a recommendation to increase operating dollars for kindergarten through grade 12 public education by 2.67 percent to $7,044 a student.

That anticipates, however, that Florida will be able to claim its share of education money in the stimulus package, an issue that remains in question. Washington may disqualify Florida from receiving the money because the state has reduced in recent years what it spends on education. Federal education officials are in the process now of defining criteria for states to receive those dollars.

The governor's heavy reliance on stimulus money drew a tepid response from incoming House Speaker Larry Cretul, R-Ocala, who said "the stimulus money cannot be seen as the only solution" to the state's budget woes.

"The March state budget revenue estimates will provide us with more accurate information on our resources," Cretul said. "We also need to consider how the spending decisions we make this year will affect future budgets."

The state's last official estimate predicted the state would come up short about $3 billion next fiscal year, but continuing plunges in tax receipts now have lawmakers predicting a combined deficit this year and next of about $5.8 billion, despite budget cuts made last month.

Crist's spending plan doesn't cover that much. It does, however, build in an extra $2 billion of unspent cash as a cushion.

Even Crist's supporters acknowledged Friday that his proposal is a starting point. Republican leaders in the Legislature are warning that deep cuts will likely be necessary to balance the budget. Although the governor says he does not want to raise taxes, lawmakers in both parties are entertaining the prospect.

Some GOP lawmakers also object to relying on so much federal money, arguing that the three-year infusion comes with too many spending requirements and will leave a giant hole when the handout expires after 2010-11.

Crist's commitment to using the money thrilled Democrats. "We stand with the governor in saying that we need to draw down this money from the federal government to help our economy recover," said Rep. Keith Fitzgerald, D-Sarasota. "I think it would be irresponsible to turn away that money on the basis of some philosophy or accounting principle."

The governor's budget also relies on lawmakers to ratify a gaming compact he forged with the Seminole Tribe in 2007 that guarantees the state a cut of the tribe's casino proceeds in exchange for exclusive rights to offer certain games. The state Supreme Court ruled last year that the governor lacked authority to sign the compact without legislative approval; lawmakers are now contemplating whether to ratify the deal or propose a new one.

The Seminoles have continued to offer the banked card games approved in the compact but prohibited by state law, and have so far paid $75 million into escrow for the privilege. Crist and the tribe have calculated that this money plus their continued deposits through 2009-10 will equal $288 million for the state.

"It can provide billions of dollars for Florida's schools," Crist said of the compact. "We cannot let this opportunity slip away."

Crist's budget also increases an array of user fees for state services to raise more than $500 million. His budget would raise tens of millions from fee increases related to driver's licenses and motor vehicles registrations, as well as increasing the cost of the state's teacher certification exam and making all college students pay for a required assessment test.

Crist is also proposing four constitutional amendments to drop property taxes starting in 2011. The amendments would:

•Restrict how much tax money local governments can collect.

•Stop tax assessments on homesteaded properties from rising when their market values fall.

•Offer first-time Florida homeowners a 50 percent tax exemption up to $250,000 (this would phase out over five years).

•Lower to 5 percent an existing 10 percent cap on yearly assessment rises for commercial properties and second homes.

If approved by lawmakers, the tax cut proposals would appear before voters in November 2010, when Crist will presumably be on the ballot either for re-election or the U.S. Senate.

Florida's counties sounded the alarm about the proposed loss of tax dollars, which would affect both local schools and local governments. Craigin Mosteller, lobbyist for the state's association of counties, said the tax cuts will mean furloughs, layoffs and reduced services.

However, Crist called his budget plan, buoyed as it is by the windfall of federal money, "fantastic. We don't have to raise taxes; we might be able to cut property taxes some more. We have more money for education funding," he said. "We can spend more money on our roads and our infrastructure; we can provide health care for our people. That's remarkable."

Reporter Catherine Dolinski can be reached at (850) 222-8382.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT