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Florida Budget Cuts A 'Prelude' To Tougher Calls

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By CATHERINE DOLINSKI

cdolinski@tampatrib.com

Published: January 6, 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 ways to fatten the state's dwindling coffers when the Legislature convenes this spring.

December's tax revenues fell $100 million below projections made only a month earlier, said Atwater, R-North Palm Beach. He described this week's budget-cutting special session to his chamber as merely "a prelude" to tougher decisions as state revenue continues plummeting.

Expect proposals by March for increasing the cigarette tax and eliminating some tax exemptions, he said. "Our agenda of critical work will include a meaningful review of the tax structure."

Even Dean Cannon, speaker-designate of the more fiscally conservative House, said lawmakers will have to consider new revenue options next session.

For now, both chambers are concentrating on cuts. Faced with a $2.3 billion budget hole, leaders in both chambers intend to carve $1 billion out of the current fiscal year's $66 billion state budget that they have already cut by $6 billion since spring 2007.

As early as Monday afternoon, it was clear the chambers had agreed on the lion's share of reductions. They likely will include a reduction of about $26.7 million to the K-12 school operations budget for Hillsborough County, on top of more than $9.8 million the county is losing because of an enrollment drop. All told, the state's public schools will lose about 2 percent in funding per student.

Most spending areas, including universities and community colleges, face cuts of roughly 4 percent. Heavier cuts include a 10 percent, or $220 million, cut in Medicaid reimbursement for nursing homes.

Among the few revenue-raisers that will likely pass this month: boosting select court fees and fines. Victor Crist, chairman of the Senate's justice budget panel, outlined a plan that includes $5 increases in traffic tickets.

Budget hearings continue today in the House and Senate, which plan to wrap up negotiations by Jan. 13.

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

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