Perspective

With Florida in a budget hole, stop digging

By BOB GRAHAM, Special to the Times
Published September 30, 2007

When Hurricane Humberto slammed into Texas two weeks ago, I was reminded that we Floridians know something about violent tropical weather. It is always dangerous and often unpredictable. But when we do see it coming, we can take steps to limit the damage. Thank goodness, because a new hurricane is headed toward us - not from the Atlantic Ocean or Gulf of Mexico but from Tallahassee.

Due to a shortfall in state government revenues, the Florida Legislature will meet in special session this week to cut the state budget by more than $1-billion. These cuts may be only the first response to a protracted crisis. Thanks to slower-than-expected rates in population and economic growth, revenues may not rebound for three years.

The timing couldn't be worse. Florida desperately needs to make investments in several long-term priorities, such as:

Universities: In the mid 1980s, Florida state universities were closing in on being in the upper quarter of all U.S. public universities for both financial support and student performance. Today, Florida ranks next to last among states in funding per public university student ($11,700 vs. the $13,100 national average) and has the highest student-to-professor ratio (31 to 1) in the nation.

K-12 Schools: Two decades ago, through general revenues, the state provided 65 percent of the funds for public elementary and secondary schools in Florida. Now, due to repeated shifts of those costs to local property taxpayers, the state contributes only 50 percent of education funding. But thanks to new legislative restrictions on property taxes, Tallahassee legislators can no longer pass the buck. They have to find more money for public education at a time when we are already implementing a $20-billion-plus constitutional amendment to reduce class size.

Uninsured Kids: Nationally, just more than 11.7 percent of children have no health insurance coverage. Florida far exceeds the national average, with 16.8 percent of our children - one in six - going uninsured. But if Florida invested $100-million in 2007 to help our uncovered children receive reliable care, including preventive measures such as immunizations, we would attract more than $200-million in federal funds.

Preservation: Through the Florida Forever initiative, our state purchases environmentally sensitive lands and protects them from development. While Florida Forever has identified more than $11-billion in critical land acquisition projects, the program has only $45-million left to spend and is due to expire in three years.

With vital needs escalating but revenues falling, legislators should take several steps in the special session to protect Florida from future economic storms.

The first is to heed the adage that when you're in a hole, stop digging. Earlier this year, the Legislature put a proposed constitutional amendment to slash local property taxes. That may look good on the surface, but consider the fine print. Under that amendment, Florida public schools would lose $7-billion over the next five years.Last week, teachers and students won a reprieve when a Florida circuit court struck the amendment from the ballot. Rather than spending more taxpayer dollars to appeal the decision or using valuable time in the October special session to revise the amendment, the Legislature should defer it to a better fiscal climate or at least develop a credible plan to hold public schools harmless from its impacts.

Second, we must jump start long-term economic growth. From 1985 to 1990, Florida's average per capita income was 100.3 percent of the national average. By the 2000 to 2005 period, our average was only 96.4 percent. Had we not experienced that drop, Florida families would have earned, on average, almost $4,000 more each year. The governor and Legislature should commit to policies designed to return Florida families to an above national average per capita income - and the best way to do that is to provide our public schools and universities with the financial support they need.

Third, we must evaluate past revenue reductions. Many of the tax breaks enacted over the last decade were justified as necessary to stimulate economic growth. Those particular cuts cost the state $2.5-billion last year alone. Given the current state of Florida's economy and the slide in relative per capita income, the Legislature should repeal any tax cuts which do not more than pay their way in verifiable economic growth.

History says that Florida will eventually snap out of its current doldrums.But if our leaders do nothing but swing a meat ax at key priorities, they will soon fall prey to snake oil salesmen who promise "easy and painless" solutions like casino gambling. The second we succumb to those intoxicating promises, Florida's character will be forever altered - our future determined by the chance turn of the roulette wheel rather than the character and capabilities of our people. When that happens, our children and grandchildren will find themselves in the middle of the perfect and permanent economic storm.

Bob Graham was Florida's governor from 1979 to 1987 and a U.S. senator from 1987 to 2005. He is the author of "Intelligence Matters." Graham currently leads the Bob Graham Center for Public Service at the University of Florida and University of Miami.

[Last modified October 1, 2007, 08:47:41]