Budget plan would avoid government layoffs in Fla.
TALLAHASSEE (AP) – Gov. Charlie Crist’s deficit reduction plan is heavy on cutting spending, borrowing money and shifting funds, but it avoids tax and fee increases as well as employee furloughs and layoffs.
The proposal Crist released Tuesday also adds $135 million as the state’s share from expanded Seminole Indian gaming if lawmakers approve a deal with the tribe. That’s something leaders of Florida’s Republican-controlled Legislature generally oppose.
Otherwise, Crist, also a Republican, said he thinks “we’re on the same page and ready to roll.”
Lawmakers are planning a special session next month to deal with a projected $2.3 billion budget deficit for the current fiscal year, which ends June 30.
Senate Ways and Means Committee Chairman JD Alexander, R-Winter Haven, said he’s asked his staff to evaluate Crist’s proposal and is looking forward to working with the governor’s office and House to “develop a disciplined budget.”
The House’s top two budget chairmen, David Rivera and Marcelo Llorente, both Miami Republicans, issued a joint statement saying they “are in general agreement” with Crist’s plan but “welcome all proposals and ideas.”
House Democratic spokesman Mark Hollis, though, criticized Republican leaders for making decisions “without the input of the public or without a full legislative review.”
Crist said he’s also hopeful the federal government will include substantial aid to the states as part of a national economic stimulus package expected early next year, but he said it’s too early to include that in the plan he sent to legislative and judicial leaders.
“Obviously, we’ll have reductions,” Crist said while visiting nearby Havana to meet with local business people and do some holiday shopping. “We’re going to have to utilize some trust funds because I don’t like taxes.”
One of the trust funds he wants to tap is the Lawton Chiles Endowment, which invests money from the state’s tobacco settlement for future use on health programs for children and the elderly.
The endowment is down to about $1 billion, about half of what it was worth in June, due to the declining financial markets and current-year obligations.
Crist wants to borrow $600 million from the endowment, which is named for Gov. Lawton Chiles, who played a leading role in obtaining the settlement.
Chiles’ family opposes taking money out of the endowment. It is reassembling the legal “dream team” that helped Florida win the settlement to sue the state if it tries to do that.
“It’s very foolish fiscal policy but more foolish public policy,” said Lawton “Bud” Chiles III, the late governor’s son.
The endowment’s long-term investments would have to be sold at a loss to provide the money Crist wants, Chiles said.
Trust funds use money from designated revenue sources for specific purposes such as gasoline taxes for roads and utility taxes for education construction.
Crist wants to “sweep” $325.3 million in reserves from these funds and borrow money for prison construction to free up $314 million appropriated for that purpose.
The Legislature, though, has been reluctant to spend such one-time revenues to pay for recurring expenses because it’s a short-term solution to a long-term problem.
The governor has a different perspective.
“It’s the taxpayers’ money,” Crist said. “It’s in essence what you could call a rainy day fund and, economically, it’s raining.”
Crist also has proposed taking another $290 million out of general fund reserves built into the budget.