Opinion: Least, lowest and last?

The disappearing surplus in Washington could lead to problems for Social Security, Medicare and the rest of the federal budget in a decade or two, but several states -- especially those, such as Florida, that are overly reliant on sales tax revenues -- are facing budget crises in the here and now. Dealing honestly and responsibly with the emerging revenue shortfall in Tallahassee will present the most crucial challenge Gov. Jeb Bush and Republican legislative leaders have faced. So far, their response hasn't been encouraging.

Recent events in Tennessee should have gotten Floridians' attention. Until recently, sales tax revenues from a booming economy had made Tennessee the envy of most Southern states, with a top credit rating, strong public schools and generous health coverage for the medically indigent. Today, Tennessee is mired in political chaos. Its credit has been downgraded, and basic state services are in jeopardy. During a raucous legislative session, belligerent anti-tax protesters at the Capitol recently helped to intimidate the Legislature into killing a proposed budget, supported by conservative Republican Gov. Don Sundquist, that would have created a state income tax while reducing the sales tax rate.

"I did not run for governor to preside over Tennessee's descent into the ranks of the least, the lowest and the last of the 50 states," Sundquist said in 1999.

Yet, by some important measures, Tennessee almost has sunk to that point. It remains ahead of only Texas and South Dakota in per capita tax revenue, and the effect is being felt in the state's schools, hospitals and other public facilities.

Florida ranks a dismal 43rd in per capita tax revenue -- and that's before taking into account a projected revenue shortfall that already is estimated to exceed $500-million. The shortfall raises urgent questions for Gov. Bush and the Legislature: Do they intend to preside over Florida's descent into the ranks of the least, the lowest and the last?

Bush took office at a time when Florida and the rest of the nation were enjoying the benefits of an unprecedented period of sustained economic growth. The resulting windfall for Tallahassee allowed the governor and Legislature to approve $1.6-billion in annual tax cuts while maintaining modest increases in spending for our fast-growing state. However, economic conditions have deteriorated dramatically. No one seriously expects state leaders to advocate anything as controversial as a state income tax, but the governor and Legislature have a responsibility to set some rational priorities.

So far, Bush has focused on defending his tax cuts -- even when it means distorting their effect on state revenues. He has not fully acknowledged the looming shortfall, much less begun talking seriously about how state government should attempt to cope with it. For their part, Republican leaders in the House and Senate have begun to recognize the problem, but few of them have broached responsible solutions.

Senate President John McKay deserves credit for advocating revenue-neutral tax reform that at least would expand our tax base and leave Florida less vulnerable to recessionary cycles. But even McKay's modest plans are rejected out-of-hand by Tallahassee's anti-tax true believers. House Speaker Tom Feeney and House Majority Leader Mike Fasano have, typically, contributed little other than hypocritical and intemperate rhetoric. Fasano recently sent out a letter warning Senate GOP leaders to limit spending on pet projects for the coming year, so that money could be reserved for even more tax cuts. Senate Majority Leader Jim King responded by noting that Feeney and Fasano, for all their small-government talk, are experts at sneaking their own pet projects into the state budget.

Such posturing from the governor and top lawmakers may briefly divert voters' attention, but tough decisions can't be delayed forever. The shortfall is real, and Tallahassee officials will have to start talking honestly about the steps that will be required to prevent it from damaging schools, roads, social services and other state priorities that already suffer from inadequate funding and support. Real leaders, such as Tennessee's Gov. Sundquist, try to make people face reality even when it isn't popular. But in Tallahassee, revenue isn't the only thing that's running short.

Back to Opinion

Contact the Times | Privacy Policy
Standard of Accuracy | Terms, Conditions & Copyright

From the Times
Opinion page