'Be prepared for tougher times,' Bush says

Referring to pessimism about the economy, he says his budget plan will include belt-tightening measures.

By DIANE RADO

© St. Petersburg Times, published January 17, 2001

TALLAHASSEE -- Florida Gov. Jeb Bush is bracing for a downturn in the economy -- recommending a dramatic increase in state reserves, ordering restrictions on state employee travel and proposing cuts in state spending and fewer tax breaks.

"I think it's appropriate to prepare for the possibility of tough times," the governor said Tuesday at a meeting of state newspaper executives.

Bush emphasized that Florida is still "in times of abundance," with a growing economy and a surplus of tax dollars to deal with the state's needs.

However, money is tighter than before: Florida has an extra $654-million in general tax dollars to spend in the 2001-2002 budget year, Bush said, compared to a surplus of $2-billion last year.

Fewer dollars are available, in part, because of spending decisions by the Legislature that have soaked up cash, and a nearly $1-billion hole in the state's Medicaid budget that pays for health care for poor people. That deficit stems from an increase in the number of people eligible for Medicaid, rising prescription drug costs and other factors.

"Generally there is much more pessimism today about the economy going forward than there was a year ago," Bush said.

It is the responsibility of the governor and Legislature "to look over the horizon and be prepared for tougher times," the governor said. "I'm not suggesting that we are going through tougher times, but not to be prepared for tougher times I think we do at our peril."

In that regard, Bush announced Tuesday that:

His proposed state budget for 2001-2002 will set aside an unprecedented $3.8-billion in reserves, nearly triple the amount set aside in rainy day funds just three years ago.

State agencies under his control will cut travel expenses by at least 6 percent for the remainder of the current budget year. Bush also said he will recommend similar travel restrictions in his proposed budget. In an executive order signed Tuesday, Bush ordered agencies to take advantage of teleconferencing equipment for holding meetings. "No travel for meetings shall be approved where teleconferencing equipment is available," the order states.

He will recommend a continued phaseout of the state's intangibles tax on stocks and bonds, but he is expected to propose $327-million in tax cuts -- far less than in previous years. In Bush's first year in office, for example, the Legislature approved a record $1-billion in tax breaks. House Speaker Tom Feeney said Tuesday that he would like to see up to $450-million in tax breaks for the next budget year.

Bush will formally release his proposed budget at 9 a.m. today, unveiling the spending plan on the Internet. Citizens can participate by going to the myflorida.com home page and clicking on the budget Webcast icon. The software required is RealPlayer 8 Basic.

Bush released a few details Tuesday during an Associated Press planning session for newspaper editors and reporters involved in covering the Legislature.

He said his proposed budget will be higher than last year's budget of $50.9-billion, but he did not specify the exact increase. Lt. Gov. Frank Brogan, the former state education commissioner, said a significant increase in public school funding can be expected, as well as a tuition increase for state university students.

Bush said he will propose a series of cuts, including 30 positions at the state Parole Commission. He said the state also will save money by decreasing the average time children spend in foster care from 683 to 562 days. That will be accomplished by increasing the number of families that take in foster children, increasing adoptions and other programs.

Bush said he will propose cutting "turkeys" -- lawmakers' special interest projects -- that have been in the state budget for years without proper scrutiny. In all, Bush's staff combed through the state budget to find $1.9-billion in savings.

Bush can expect his proposed budget to be challenged by Democrats and Republicans alike.

House Democratic Leader Lois Frankel suggested Tuesday that Bush use money for tax breaks on increasing teacher salaries. Republican Senate President John McKay said some of his own pet projects are probably embedded in the state budget.

"And they'll stay there, too," McKay said.

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