Notes For Wednesday, January 22, 2003

THE REASON FOR BUSH BUDGET BLUES - BUSH'S IRRESPONSIBLE TAX CUTS. Look no further than Governor Bush to see why the state is in such a budgetary mess: "Bush defended his administration's zeal for tax cuts, which has drained $6 billion from the state treasury since he first took office."

Bush's reationale: "It's a good way to curb spending," Bush said of tax cuts. "If the money is not there, you will not spend it."

We sympathize with the views of Senator Klein: "This multibillion-dollar deficit was created by borrowing money we didn't need to give away money we didn't have in the form of tax cuts over the past four years to a small number of powerful interests and wealthy Floridians," Klein said. "This deficit was created by a Republican administration out of touch with a middle class."

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BUSH BUDGET BLUES. More detailed analyses of the Bush budget have emerged, including:

"Want small classes? Here, Bush says".

"Gov. Bush blames budget woes on new class-size limits".

"Bush Budget Calls for Drastic Cuts".

"Bush urges service cuts, lower taxes"

Several themes are evident:

1. Minimal spending increases for education, but little for teachers. In light of Bush's previous remarks about the cost of the class size amendment eating up money for teacher raises, the education increases likely will go to reducing class size and otherwise just keeping up with the state's exploding growth. Indeed, "after accounting for the class-size initiative and an expected enrollment growth of 55,000 new students, the total increase for public school spending is one of the most meager since Bush took office in 1999.

2. Modest spending increases for DCF. "new Bush appointee Secretary Jerry Regier would get about half of the $474 million budget increase he sought. Included in that boost is a recommended 376 additional caseworkers and proposed $4,000 raise in entry-level salaries. The new $34,000 annual pay would be roughly the national average for an agency long plagued by high staff turnover. But some social-service advocates also blasted the governor for focusing on children at the expense of troubled teens. Among the hardest-hit programs in the social-services budget is a $9.7 million reduction in the PACE Center for Girls, which runs 19 centers for troubled girls in Florida . . . .." In addition, Bush has proposed cutting "programs aimed at reforming juvenile criminals,"

3. "Dramatic" cuts to spending on healthcare. "Bush proposed . . . slashing the state's Medically Needy program that helps working poor people without health insurance."

5. "Dramatic" cuts to transportation spending.

6. "Dramatic" cuts to university spending. 111 million iis slashed from the budgets of the state's 11 public universities, and Bush "recommended freezing the amount of money available for financial aid for needy students while at the same time recommending universities raise tuition 7.5 percent for undergraduates and giving the schools the power to raise tuition even higher.

7. No pay raise for state employees. In an effort to expedite the emptying of state buildings, Bush has employees receiving no wage increases this year.

8. Costs shifted to local government. Bush "drew heat from county officials, who said his budget recommendations turn more state programs over to local governments to operate, forcing a potential $237 million increase in local property taxes across the state. The biggest Bush proposal is counties pick up the cost of housing and feeding juveniles held in state detention centers, a hand-me-down to counties that would cost at least $64.3 million statewide, tagging Orange County taxpayers, alone, with an extra $6.8 million in costs."

The Revenue Side

1. Sales tax holiday revived. "Bush proposed more than $60 million more in tax cuts in the coming year. Bush wants to revive the popular sales tax holiday where Floridians can buy clothes and school supplies without paying sales taxes."

2. Fee increases The budget "include[s] fee increases".

3. Raiding trust funds. Bush "launched a raid on the more than 400 state trust funds that the governor and Republican Legislature have little control over, but which account for nearly 60 percent of the state budget. Bush wants legislators to change state law and redirect almost $1.5 billion from 34 state trust funds into Florida's general-revenue pool. These funds currently go toward regulating professional services, cultural programs, transportation, beach restoration and a wide range of state oversight efforts." The dedicated funds were also used for "recycling grants for counties, ... regulating the insurance industry", etc.

4. Borrow money. In the great southern tradition of Scarlett O'Hara, "there's always tomorrow", so Bush has recommended that the state "borrow $2.4 billion over the next five years to build about 12,000 classrooms to meet the requirements of the class-size amendment, which Bush unsuccessfully sought to defeat during last year's election."








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