Sunday, January 11, 2009

It's Official, the Special Session Budget Is A Failure for Florida

The budget proposed by legislative Republicans is short-sighted, economically naive, immoral and the exact type of thinking that got us in the budget mess we are in now. Instead of doing the right thing and closing tax loopholes for the wealthy, Republicans are cutting essential services, mortgaging our future and raising fees (a.k.a. "taxes") on those less able to pay. They should be ashamed of themselves.

Overall, the "savings" in the new budget is $2.8 billion. The budget will be voted on Wednesday.

Among the key things on the chopping block:

$20 million from the Florida Forever program that buys up land for conservation purposes. This effectively shuts down the program for the year. I wonder how much of Florida's beauty will be destroyed in that year.

$480 million in education funding. This is shameful. We already have the lowest spending in the country on education and this will make it worse at a time when we also have the lowest graduation rate in the country. Like I said, mortgaging our future.

$321 million in construction projects, which could be good or bad, depending on what the projects are.

$437 million in other cuts. I'd like to see more details on these, although I have a feeling we aren't talking about good cuts here.

$1.5 million cut from the governor's office. Not a lot of money is saved here, but it's at least a good sign that the governor is going to face some of the same kinds of cuts everyone else is.

$100,000 by getting rid of a state aircraft. Okay, this one is definitely a good idea, too. It saves little money, but it is a good symbolic gesture.

One bright spot is nursing homes, which through a bit of budget creativity (why couldn't they have done this elsewhere?), will gain funding through cuts because they'll be able to qualify for more federal grants. I wonder how many other federal grants we didn't get because nobody tried to get them.

The other aspect of the "compromise" budget wherein there were really few compromises and few changes apart from what Republicans came to Tallahassee with is raids of various trust funds, some of which are permanent. Here's what they are taking:

$700 million from the Chiles fund, designed to pay for child welfare, child and elderly health care programs and anti-smoking efforts. The money is supposedly going to be paid back, unless there is an emergency. Who wants to bet that "emergency" has already been designated and this money won't be paid back? And since this fund pays for these programs based solely on the interest, this is a huge cut, taking out more than half the assets in the fund, meaning little is left to pay for these vital programs.

$190 million from a trust fund designed to provide low-income housing. I can't imagine that we'll have any need for low-income housing during a depression. At least we'll have good roads to drive on, thanks to Mike Fasano, who saved money for them (but not for any people, apparently).

$400 million from the Budget Stabilization Fund. This is a terrible idea considering the state of the economy and the almost universal projections of further economic decline. As Alex Sink said, this could leave us unable to meet our obligations down the road if things keep getting worse.

$381 million from other trust funds. Obviously, I'd have to know more about which trust funds to know if this is a good idea. Based on the rest of this crappy budget, I'm guessing these are bad things to be stealing money from.

And they propose increasing traffic fines, dropping the ability to get discounted fines for going to traffic school and taking away the power of judges to waive fines. Seems pretty clear that these increased taxes will disproportionately affect people at the bottom end of the economic spectrum -- increasing taxes on the poor.

Senate Democrats all voted against this proposed budget, except for waste of space Gary Siplin.

The problem looks to get worse, too, as the deficit for next year is projected to be over $4 billion. I can't imagine what they'll cut next time.

William March had this to add:


The legislation implementing the cuts is almost too difficult for a laymen, including reporters, to follow unaided.


Weren't Crist and the Republicans supposed to bringing "plain language" to the government? Another broken promise. Add it to the lists of promises our Republican leaders have broken to the Florida public since they came to office. There are so many of them, no one will even notice this new one.

From the Blogs

Progress Florida (Ray Seaman): Haridopolos: Statewide Candidates Should Be Bought Off Like Everyone Else

Friday, January 9, 2009

Senate Democrats Attempts to Help Floridians Rejected by Republicans


TALLAHASSEE – With hundreds of university professors, thousands of catastrophically ill Floridians, and scores of children’s programs on the line, Senate Democrats on Friday offered the Legislature for the second time in less than a year a billion dollar financial lifeline.

Senate Republicans threw it back - again.

“The money we found didn’t involve raising taxes a single penny,” said Senate Democratic Leader Al Lawson (D-Tallahassee). “It didn’t burden Floridians struggling to hold on to their jobs and their homes. And it didn’t attempt to raid teachers’ pay checks or toe the line of financial extortion on traffic tickets and court costs. All it did was wean some very wealthy special interests from the corporate welfare they’ve enjoyed for years. It’s time they joined the rest of us and paid their fair share.”

The money lifeline offered by Democrats came in the form of amendments sponsored by Senators Lawson and Dan Gelber (D-Miami) closing several tax loopholes tailored exclusively for high-end developers and non-Florida based corporations, and a review of certain exemptions. They were:

The real estate transfer tax loophole: Doc stamps most of us pay when property is sold are evaded by placing real estate into a trust, as one method, transferring the trust into a corporation, and then selling the stock in the corporation. For example, one company’s reported 2005 sale of six apartment complexes recorded the $300 million deal at only $60, and so avoided a $2.1 million tax bill. Estimates vary, but closing this escape hatch could fetch up to $200 million annually.

Combined Reporting: Closing this loophole could generate up to $400 million annually. Already eliminated by a growing number of states including New York and Texas, multi-state corporations such as some fast-food and toy store giants tap this loophole by setting up real estate rents or trademark fees through chains located in no-tax or very low-tax states, and so avoiding the tax due in Florida. This maneuver leaves those Florida-based and operating companies at a great financial disadvantage.

The third amendment involved sales tax exemptions – currently running in excess of $23 billion annually. The measure would have given the Legislature a process for review of all sales tax exemptions other than those for food, prescription drugs, health services, charitable and religious institutions, and certain others. The revenue generated from those exemptions eliminated would have been dedicated to education and the reduction of that portion of the property tax paying for local education budgets.

“We need to reexamine our priorities, especially when we face the severe damage we are levying on our social services programs and our kids’ education,” said Gelber. “It’s hard to justify a company using its toy logo to dodge Florida taxes when the very kids they’re selling to are about to lose their teachers.”

Friday’s efforts were not the first time Senate Democrats had attempted to stem the severity of the cuts to state services necessitated by the economic downturn. Similar efforts during the 2008 Legislative Session were also rebuffed by the Republican leadership.

“They can’t say they didn’t see this coming, and they can’t say they need more time to study these solutions,” said Lawson. “The longer the state waits for tax fairness, the faster the slide off the edge of the cliff.”

Senate Bill Update

The following are the bills introduced and still active in the Senate during the current special session.

SB 6A, 8A, 10A, 12A, 14A, 16A, 18A, 20A, 22A, 24A, 26A, 28A, 30A, 32A, 34A, 36A, 38A, 40A, 42A, 44A, 46A, 48A, 50A, 52A: I don't get the intent of these bills, which do nothing more than state the intent of the Senate to do something else. Any legislative experts have an explanation?

SPB 800A, 8002A, 8004A, 8006A, 8008A, 8010A: This is a series of bills that appear to be designed to cut appropriations for various departments. The online version of each bill, however, is blank after the title. Not sure if that is an online hiccup or if these bills are something else? Again, do we have any legislative experts who can give us more info?

Saturday, January 3, 2009

From the Blogs

FLA Politics (mentelibre): Thank you Senator Alex Villalobos

Friday, January 2, 2009

From the Blogs

Progress Florida (Ray Seaman) - An Irresponsible Budget

Florida Citizens for Science: The new legislative session

Progress Florida (Ray Seaman): The First of Many Bad Ideas from "Crisatsom"

ricksblog: Sansom not only lawmaker on the take