Politics

Budget officials: Let's cut deeper

State agencies are told to plan for spending cuts of at least 10 percent.

By STEVE BOUSQUET
Published June 30, 2007

TALLAHASSEE - Six months of sluggish tax collections in Florida have taken their toll: State government will have to get by with 4 percent less money.

A slack housing market, combined with a drop-off in new car sales, corporate income taxes and other levies are forcing the governor and legislators to draw up plans for even deeper spending cuts.

"Agencies should take responsible action now," said a joint memorandum issued Friday by budget directors for Gov. Charlie Crist, the Senate and House.

Cuts in travel and equipment purchases, delayed implementation of new programs and filling only "essential vacant positions" were among the recommended actions.

"The agencies I work with can't absorb cuts. We rank at the bottom of everything," said lobbyist Karen Woodall, a health and human services advocate. "I think it's way too soon to be talking about cutting budgets."

The latest gloomy budget news is especially unwelcome on Florida's university campuses, where Crist's recent veto of a 5 percent tuition hike has some schools capping enrollments for next year.

"The recent property tax legislation adds to the very difficult revenue situation that may unfold in upcoming years," said a memo issued Friday by Mark Rosenberg, chancellor of the state university system.

State agency appropriations will be cut by 4 percent for the fiscal year starting Sunday.

"Our economy is cooling," Crist said at a bill signing in Tampa, "and I think it's property insurance and property taxes."

Since December, sales taxes that fund most day-to-say state operations have consistently fallen below anticipated levels. The shortfall for the fiscal year ending today totals about $400-million, and at least $800-million for the fiscal year that begins Sunday.

An analysis by state economic researchers shows that a major source for the downturn in revenues is the gradual repeal of the intangible tax on investments, a priority of former Gov. Jeb Bush.

Intangibles tax collections for the first 11 months of the fiscal year were $715-million, or 39 percent below last year at the same time.

Crist's budget office will give all agencies savings targets by July 16. Agencies will have until Aug. 8 to submit a list of proposed spending cuts equal to 10 percent of their operating budgets, though they will be required to cut only 4 percent of that.

"We will begin addressing this issue immediately," said spokesman Al Zimmerman of the Department of Children and Families. "But I want to make it clear that we won't propose any cuts that could compromise our ability to care for the adults and children of this state who have no one else to turn to but us."

The Florida Constitution prohibits deficit spending. As actual or anticipated tax revenues drop, agencies must curtail spending accordingly.

Times staff writer Shannon Colavecchio-Van Sickler contributed to this report. Steve Bousquet can be reached at bousquet@sptimes.com or 850 224-7263.

[Last modified June 30, 2007, 00:07:27]