TBO.com - TBO is Tampa Bay Online

Crist Should Offset Any Vetoed Cuts, House Leader Says

ADVERTISEMENT

The Associated Press

Published: January 22, 2009

TALLAHASSEE - Florida House Speaker Ray Sansom said Gov. Charlie Crist should suggest ways to offset any items he vetoes in a deficit-elimination package when he submits his recommendations for the next state budget.

And, Senate President Jeff Atwater said he's worried reducing already thin reserves in the $2.6 billion deficit reduction plan for the current budget year could harm Florida's bond rating, resulting in higher interest rates when the state borrows money.

Crist made his strongest comments so far Thursday about plans to veto some items, particularly cuts that forced layoffs of 66 probation officers and a reduction in bonuses for teachers who earn national board certification. The governor also is considering restoring funds cut from the Florida Forever environmental lands program and the state's affordable housing program.

"As I have hinted — not really hinted so much but almost acknowledged — I think that next week you'll see some changes to some of the reductions," Crist said at the annual legislative planning session for editors and reporters hosted by The Associated Press.

Sansom, R-Destin, and Atwater, R-North Palm Beach, followed Crist to the podium on the Capitol's 22nd floor observation deck. They defended $1.2 billion in spending cuts in the package lawmakers passed at a special session last week. Crist is expected to sign a budget bill (SB 2-A) and conforming legislation but he has the power to veto line items.

"He certainly has the constitutional right to veto it, I respect it," Sansom said. "What all we expect is whatever areas that he might veto that we would see that difference made up in the budget he recommends to us."

Sansom and Atwater later sent Crist a letter letting him delay his recommendations for the budget year beginning July 1, by 18 days until Feb. 20. Crist asked for more time to determine how the deficit legislation and a promised federal stimulus plan may affect the new budget.

If Florida's AAA bond rating drops by just one level, that would increase the state's debt service by up to $150 million a year and mean more spending cuts to make up the difference, Atwater said.

"I'm frankly not going to stand by quietly and have someone criticize the (Legislature's) tough decision," Atwater said.

He added, though, that he's confident Crist will take that factor into consideration.

Crist said his "heart and soul are in the environment of Florida" and he wants to keep Florida Forever going "if there's a way to get there."

Both legislative leaders defended suspending Florida Forever. Sansom said education, which takes a lesser hit in the deficit plan, is a higher priority.

Atwater said the plan will suspend the program just for the rest of the budget year and lawmakers then intend to let it resume. Crist said he's worried suspending it one year would embolden lawmakers to do it again next year when a $4 billion budget gap is expected.

The Florida Forever suspension means the state would not buy about $200 million in property this year, saving $20 million in annual debt service on bonds that would have been sold to finance those purchases, Atwater said.

"You can equate that to about 800 teachers," he said. "You can equate that to about 1,100 Florida Highway patrol officers."

Besides spending cuts, the deficit package raids trust fund, taps reserves, shifts dollars within the budget and increases traffic fines. If Crist vetoes nothing it would shrink the budget to $65 billion. The plan is aimed at closing a forecast hole of at least $2.3 billion and leaving a $300 million cushion in case the state's revenue outlook worsens by June 30.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT