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State Lawmakers Foresee Higher Taxes To Erase Deficit

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By CATHERINE DOLINSKI | The Tampa Tribune

Published: January 5, 2009

TALLAHASSEE - Higher taxes and other new sources of revenue loom on Florida's horizon -- but not in time to stave off $1 billion in budget cuts now.

That was the message from Senate President Jeff Atwater and other leading lawmakers, who spoke Monday about tackling new ways to fatten the state's emaciated treasury when the Legislature's regular session begins this spring.

Atwater told his chamber to expect proposals for hiking the cigarette tax, ending tax exemptions and collecting taxes on Internet transactions ready "for possible action" by March.

"Our agenda of critical work will include a meaningful review of the tax structure," said Atwater, who called the special budget-cutting session that began on Monday a "prelude" to tougher decisions this spring.

Even Rep. Dean Cannon, Speaker-designate of the more fiscally conservative House, said that lawmakers will not be able to rule out any options next session – even a higher cigarette tax.

During the session that continues Tuesday, however, GOP leaders in both chambers are maintaining a laser focus on spending cuts. Faced with the prospect of a $2.3-billion deficit, leaders in both chambers expect to carve $1 billion out of the $66-billion state budget that they have already cut by $6 billion since spring 2007.

Those cuts will likely include a reduction of $26.7 million to the K-12 school operations budget for Hillsborough County, on top of more than $9.8 million the county is already losing in per-student funding due to an enrollment drop. Enrollment in Hillsborough fell more than 2,000 short of expectations this year.

All told, total K-12 education funding will shrink by 4 percent, on top of another 2 percent cut due to falling enrollment. Other cuts include a `10 percent reduction in the Medicaid reimbursement rate for nursing homes.

Among the few revenue raisers that will likely pass: higher court fees and traffic fines.

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

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