Politics

Lawmakers must approach state budget with scissors

By STEVE BOUSQUET, Tallahassee Bureau Chief
Published October 1, 2007

The Florida Legislature will convene Wednesday to cut about $1-billion from the current year's $72-billion budget. Here are some questions and answers about the special session.

How did this shortfall happen?

The budget is based on anticipated revenues, but state tax collections have fallen well short of estimates for several months because of a slack housing market. The result is a paper deficit. The state Constitution prohibits deficit spending.

Why is the session being held now?

The state fiscal year is already 3 months old. The longer legislators wait to make budget cuts, the harder it is to do because agencies keep hiring employees, signing contracts and spending money. Besides, this session has been postponed once already because the House and Senate couldn't agree on how to make cuts.

Who decides what gets cut?

Mainly four people, all Republicans: Senate President Ken Pruitt, House Speaker Marco Rubio and the respective appropriation committee chairs, Sen. Lisa Carlton and Rep. Ray Sansom, with much input from their staff members.

The House and Senate have drawn up tentative lists of cuts in most programs. To keep things in context, the total cut represents about 1.4 percent of the total budget.

How will the cuts affect us?

Not much. Lawmakers and agencies have tried to make cuts as painless as possible, revealing flexibility in such a big budget. Some cuts are accomplished by getting rid of unfilled jobs or reducing amounts the state pays for contracted services. One big savings is realized by delaying a $147-million teacher bonus plan for one more year.

Why don't they raise taxes instead?

That's out of the question. Gov. Charlie Crist and the Republican Legislature oppose higher taxes, especially when the economy is slow. Legislators will raise tuition by 5 percent at universities and community colleges, however. Democrats may suggest eliminating tax breaks or restoring a tax on investments, but they don't have enough votes to prevail.

What will they do to lower property taxes?

Nothing in this session. The governor may ask the Legislature to return later this month for another special session to retool the constitutional amendment proposed for the Jan. 29 election.

A judge struck the amendment from the Jan. 29 ballot because the language about expanding the homestead exemption was misleading. The state is appealing the ruling.

Will they resolve the problem over no-fault car insurance?

Not likely. This controversial subject will be dealt with in a separate special session. Rubio and Crist want no-fault, or personal injury protection, to be revived (it expired today). But the Senate shows little interest.

[Last modified October 1, 2007, 06:59:08]