TBO.com - TBO is Tampa Bay Online

Budget Options On Legislative Menu

ADVERTISEMENT

By CATHERINE DOLINSKI

cdolinski@tampatrib.com

Published: January 3, 2009

WHAT'S IN:

•Budget Cuts. Lawmakers in both chambers now anticipate cutting recurring costs by roughly $1 billion. That likely means cutting into health, education and public safety and other vital services, which could trigger layoffs and jeopardize the welfare of some of Florida's neediest residents.

Last month, Gov. Charlie Crist proposed making only $565 million in cuts. But Senate budget chief J.D. Alexander, R-Winter Haven, told members that shrinking the state's recurring budget is necessary "to end the ominous cycle of reductions from past budgets" that has ensued over the past 18 months due to shrinking tax collections.

•Raising Fees. The state raised filing fees and other court charges last spring to keep the judicial system from imploding due to budget cuts. It appears that lawmakers will make the same decision again. Losers in the scenario include the poor, as well as groups like battered women, since divorce may get more expensive. Also in the mix: hikes in traffic violation fines.

•"Streamlining And Flexibility" Of Education Programs And Funding. As lawmakers carve into the education budget, they may loosen restrictions on schools' use of state dollars, most of which are designated specifically for either construction or operations. Class-size reduction could also slow down - an option that lawmakers have been debating since the Constitutional requirement passed in 2002.

•Sweeping Trust Funds And Other Reserves. Lawmakers may raid trust funds normally dedicated to transportation, affordable housing, combating domestic violence and other policy priorities. They are also likely to dip into the state's rainy day reserve known as the budget stabilization fund, totaling about $672 million, and may tap the Lawton Chiles Endowment Fund, totaling about $1 billion, which supports health and related services. Asked Friday what he would say to the Chiles family, which opposes the move, Crist said, "The people of Florida deserve to have a balanced budget."

WHAT'S OUT:

•Cigarette Tax Hike. Democrats were calling for a $1-per-pack tax increase on cigarettes, which could raise $700 million. GOP leaders explicitly axed this idea, noting that they won't consider raising "sin taxes" on other tobacco products or alcoholic drinks, either. Crist opposes increasing any tax, including the cigarette tax.

•Seminoles Gambling Compact. Gov. Charlie Crist had proposed using $135 million of the state's share from expanded gaming by the Seminole Indian Tribe. The Seminoles continue to offer expanded games - and pay the state a share of the proceeds - per the terms of a compact that the state Supreme Court voided last summer. Crist had hoped that he and lawmakers might approve a new deal between the state and the tribe as early as this month. But lawmakers, who are less bullish on the compact, say it's too soon to tackle the issue. Crist expects it to be taken up during the regularly scheduled legislative session in March.

WHAT ELSE:

•Low-Interest Loans For Small Businesses. A priority of Crist, this $10 million pilot project is intended to stimulate the economy.

•Borrowing Instead Of Buying. Crist also wants to borrow $300 million for prison construction instead of paying cash. Lawmakers' itinerary for the special session does not rule this out, though it does not explicitly name it as an option.

•Federal Stimulus? On the chance that the federal government drops a stimulus package in to Florida's coffers for use this fiscal year, lawmakers added "intergovernmental transfers" to their list of options so they can shift the new money around as needed. Crist said he expects Florida to receive substantial assistance from Washington this year.

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

Share this:

Loading Comments...

Email Print

ADVERTISEMENT