That leaves little room for the state to borrow money to fund the smaller class size and bullet train mandates.
By STEVE BOUSQUET
Published December 17, 2003
TALLAHASSEE - Florida's debt continued to rise in 2003, leaving the state little room to borrow money needed for the huge costs for smaller classes and the bullet train voters have demanded.
Still, the economy is showing signs of recovery, Florida's credit rating is healthy, and the state has $1.6-billion tucked away for emergencies, Gov. Jeb Bush and the Cabinet were told Tuesday.
The latest snapshot of Florida's debt was presented to Florida's top officials by Ben Watkins, director of the Division of Bond Finance. His report could be a new weapon for Bush in his efforts to repeal the class size and train initiatives from the state Constitution.
"There are clouds on the horizon," Bush said.
Democrats charged that Bush and the Republican-controlled Legislature added $5-billion in new debt since 1998, while they were giving out billions of dollars in tax cuts to wealthier Floridians.
"It's time to get the elephant off the backs of Floridians," said a statement from the House Democratic Office, headed by Rep. Doug Wiles, D-St. Augustine.
The state has a self-imposed borrowing target of no more than 6 percent of the money it takes in each year, and a 7 percent debt cap. That cap can be exceeded, if the Legislature declares a critical state emergency.
"It's a speed bump, not a hard limit," Watkins said.
Even if the state does not borrow any more money, it will exceed the 6 percent target next year, and the debt ratio will climb to 6.67 percent by 2005.
If revenue projections are accurate, Watkins said, the state won't have much borrowing room until 2011. By then, some debt will be paid off, class size must be funded or repealed and the revenues will have grown.
Florida's total debt has doubled in the past 10 years, and its debt payments have nearly tripled in that time, Watkins said.
The debt payments were $1.5-billion last year alone for schools, roads, college dorms, parking garages and other public facilities.
The state's debt burden is above the national average and higher than the 10 most populous states except New York, Watkins found.
But the report was compiled before California decided to borrow millions of dollars to ease its budget crisis, Watkins noted.
The state owes $20.4-billion, most of it for school construction and roads. The total debt grew by $1.2-billion in the past year and is expected to grow by $10.5-billion in the next decade.
The total includes $533-million approved by the Legislature this year for the first phase of the voter-approved class size amendment. But it does not include the cost of reducing class sizes further in coming years, or the cost of a high-speed rail system linking Tampa, Orlando and Miami.
"We've got major debt in the out years that's not included in here that would alter these percentages in the debt ceiling," Bush said.
