Despite Stimulus Florida Is Facing Budget Crunches
Despite the stimulus rolling in, Florida is facing budget crunches and the situation is grim. Although there have been cuts in property taxes, changes in insurance rules as well as foreclosure relief attempts, it is a tough job for budget writers. The boom years have receded to a foggy past.
On Tuesday 3rd March the lawmakers will start the legislative session (60 days) with the prime task of trying to find ways to pay bills for the services rendered by the government with less number of dollars.
The options before them are severe. Spending on education, health-care as well as transportation would have to cut by $8 billion. The funds coming in from the federal stimulus could only work out a temporary quick fix. The other alternative would be to increase taxes on various items like alcoholic drinks, cigarettes, Internet vendors, motorists as well as companies that deal with bottled water. The immediate current deficit is about $700 million. Within a span of two years this would be the seventh recurring budget cut.
In the forthcoming year starting from 1st July, the situation is worse for Florida with the gap exceeding $5 billion. The frustration is visible in the Capitol. The revenue collected for December 2008 and January 2009 was $216 million less than what was expected. Steve Wise (Republican) chairperson of Senate PreK-12 Education Appropriations said, “When we come out with a budget, it’s going to be a disaster and everybody’s going to be not happy.”
Governor Charlie Crist is offering a bagful of federal money to stimulate the flagging mood of the economy. His department plans to plug the deficit hole for the next 16 months with $8 billion from the $787 billion that has been granted by the Congress. Crist explained that since the state was passing through a critical time the money is much needed. According to his plans over $3 billion would see through the following four months. $4.7 billion would make patchwork repair to the damage done to education, health care and transportation. It would lead to a balance of $3.8 billion as Florida’s share of the stimulus grant for the fiscal year of 2010-2011. This will hardly cause the economy of Florida to star to recover.
However certain vital categories like health, education and transport would get some reprieve. This would be of help to the poor, the seniors and those who are disabled or caring for foster children.
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