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How should we balance the Florida budget?

30ashopper avatar
30ashopperSoWal Insider
1,093 views
A lot of folks are not happy with the service cuts the legislature is proposing. But I don't hear a lot of discussion on how we could avoid that and still balance the budget. I'm curious what people see as the solution.

A little recap: In 2009, we had a major shortfall in the budget that had already passed. To fill the gap, the legislature raised all sort of taxes and fees, cut some state services, and borrowed from misc. funds.

Details:

increases in traffic fines of $10 for every traffic ticket issued except for speeding tickets which went up by $25 and an elimination of an 18% discount on tickets for those enrolled in driver's improvement courses;
a suspension in the environmental land program saving $4 million and cancelling $250 million in bond sales;
a 10.5% cut in Medicaid payments to nursing homes and a tax increase on nursing homes;
a transfer of $400 million from a Rainy Day Fund, leaving about $250 million in the fund;
a $466 million cut in education spending, an option for school administrators to volunteer for pay cuts and limiting the severance of teachers and administrators to one year;
a 2% decrease in teacher's bonuses, saving the state $11 million;
a 4% cut in aid to state universities and community colleges for a savings of $157 million;
$700 million to be borrowed from a $1.2 billion endowment that invests money from tobbacco settlements for future use on healthcare programs;
a $9.9 million cut in the state's public/private tourism agency, Visit Florida;
a 5% cut in a program that helps people with developmental disabilities, including autism;
an $190 million cut in a program that helps pay for low and moderate-income housing;
an elimination of 1,400 state jobs; and
a $3.75 million decrease in funding for cancer, cardiovascular, stroke and pulmonary diseases.

Despite this, in 2010, we had another major budget gap. We recended some of the cuts above, and filled the enitre gap using money the federal government gave us from the stimulus.

In 2011, with stimulus funds gone, we now have a 3.6 billion dollar budget short fall. In 2010-2011 we spent about 70 billion. In 2011-2012, we only have around 66 billion (assuming we don't raise more taxes.)

So I'm curious, how would you fill the gap? The proposed 66 billion budget by Scott cuts700 million from education, requires government employees to contribute to their pensions and healthcare, lays off about 7000 government workers, closes a few prisons, and cuts Medicaid by about 1.5 billion.

All of these cuts have a lot of people up in arms. My question is this, how would you balance the budget without cutting the services you feel should keep their funding? What would you cut, and what taxes would you increase?

Replies

25
Andy A avatar
Andy ABeach Fanatic
#2
Don't expect any cogent answers. Tightening your belt is not on many people's agenda.
happy2BmeBeach Fanatic
#3
one good answer would be to immediately institute policy requiring that within 30 days a third-party, non-governmental consulting board (made up of a random selection of the State's most seasoned, successful, and renowned business and financial and non-profit agency professionals) would be enlisted to, within a following 30-day time period, (1) review the budget and red-tag questionable expenditures, and (2) produce and disseminate a detailed report of findings and recommendations to Florida voters. Florida voters would be given the ability to vote (American Idol sytle), within another 10-day period, whether to keep or cut the line item. Within 10 days of that time, the final budget would be reviewed and approved. Within 10 days of that time, the budget would be disseminated via email, followed up by hard-copy. This process would be initiated each year 90 days prior to when the final budget was required to be in-place (1 Oct, 1 Jan, etc.).

Now, that said, I fully expect that the odds of our government being able to make a decision on whether to institute such a straightforward process is probably as good as my having flying monkeys spontaneously erupt from by hiney......and, in concept, it is too straightforward.
scooterbug44 avatar
scooterbug44SoWal Expert
#4
1) I would cut the benefits of every elected member of government.

All judges, politicians, etc. would be get 5% max of their salary paid to their pension - no more.

Per diems, travel expenses, and perks would be slashed.

2) I would tax politicians' campaign contributions - 10% of all donations/contributions (including to PACs) would go to pay off the deficit.

3) No tax cuts until revenue exceeds the budget.

4) Increase taxes on cigarettes, cigars, and junk food.

5) Use prison labor and opt-in service (instead of jail time for non-violent offenses) to grow food for schools, prisons, government cafeterias, to clean up our state, and to enforce ordinances.

6) Increase fines for parking, speeding, and texting.

7) Reduce the use of air conditioning and heat in all government buildings. It's an office, not a meat storage locker.

8) Reduce the amount paid out in lottery prizes

9) Tax overweight vehicles for the increased damage they cause to roads

10) 5 cent tax on all bottled water sold

11) 5 cent fee on every plastic bag

Edited

GoodWitch58Beach Fanatic
#5
we discussed this to great length on another thread..
the common factor in almost all of what you posted is the social/human component to the most vulnerable.

We need to look at the perks given to the highest paid elected officials and employees;and some of the programs that are obviously ineffective; and those that have been outsourced and proven by audits to cost more than when they were done by government employees; "Taj Mahal" buidings to house judges...the list is long, but it takes political will and leadership to get past the greed and special interests that permeate Tallahassee...

From SB's #9 above, get rid of or heavily tax the double trucks that do so much damage to our highways.

Edited

Bob avatar
BobSoWal Insider
#6
state income tax....wake up the bluehairs
scooterbug44 avatar
scooterbug44SoWal Expert
#7
From SB's #9 above, get rid of or heavily tax the double trucks that do so much damage to our highways.

I think those are a safety hazard, but I believe those vehicles already pay hefty road taxes/fees based on their weight.

I was referring to passenger vehicles over 6,000 lbs. Large SUVs, trucks, vans etc. that cause 2-3x more damage to roads, yet in many cases get tax breaks.
Bob avatar
BobSoWal Insider
#8
State income tax - Wikipedia, the free encyclopedia # Alaska ? no individual tax, but has a state corporate income tax. Like New Hampshire, Alaska has no state sales tax. Alaska has annual Permanent Fund Dividend for all citizens living in Alaska after 2 years (a reverse income tax).[citation needed]
# Florida ? no individual income tax, but has a corporate income tax (at a 5% rate). The state once had a tax on "intangible personal property" held on the first day of the year (stocks, bonds, mutual funds, money market funds, etc.), but it was abolished at the start of 2007.[citation needed]
# Nevada ? has no individual or corporate income tax. Nevada gets most of its revenue from gaming and sales taxes.[citation needed]
# New Hampshire ? has an Interest and Dividends Tax of 5%, and a Business Profits Tax of 8.5%. New Hampshire has no sales tax.[6]
# South Dakota ? no individual income tax, but has a state corporate income tax on financial institutions.[citation needed]
# Tennessee ? has a 6% tax on income received from stocks and bonds not taxed ad valorem.[7] In 1932, the Tennessee Supreme Court struck down a broad-based individual income tax that had passed the General Assembly, in the case of Evans v. McCabe. However, a number of Attorneys General have recently opined that, if properly worded, a state income tax would be found constitutional by today's court, due to a 1971 constitutional amendment.[8]
# Texas ? no individual income tax or corporate income tax. In May 2007, the legislature replaced the franchise tax with a gross margins tax on businesses (sole proprietorships and some partnerships were automatically exempt; corporations with receipts below a certain level were also exempt), which was amended in 2009 to increase the exemption level. The Texas Constitution places severe restrictions on passage of a individual income tax and use of its proceeds.
# Washington ? no individual tax, but has a business and occupation tax (B&O) on gross receipts, applied to "almost all businesses located or doing business in Washington." It varies from 0.138% to 1.9% depending on the type of industry.[9][10]
# Wyoming ? has no individual or corporate income taxes.[
GoodWitch58Beach Fanatic
#9
I think those are a safety hazard, but I believe those vehicles already pay hefty road taxes/fees based on their weight.

I was referring to passenger vehicles over 6,000 lbs. Large SUVs, trucks, vans etc. that cause 2-3x more damage to roads, yet in many cases get tax breaks.

Don't kid yourself, these double and triple trucks get tax breaks too. I worked on some legislation on this a few years ago, and believe me, they don't pay anywhere near what it costs to repair the damage they cause. I don't have the specifics of the Florida legislation, but this gives a good summary:
Axles to Grind: Driving Questions About the Limits to Place on Trucks Traveling Our Roads
If the states were to spend the estimated $154 billion needed to repair the nations' bridges, they'd have to add another $53 billion to make them sturdy enough for LCV use. Prohibiting LCVs, the study says, could slash $20 billion from bridge repair and replacement costs nationwide.

Many states don't have adequate funds to correct existing highway problems and some sources think big trucks aren't paying their fair share for highway upkeep now. According to the 1997 Federal Highway Cost Allocation Study Summary Report, as a group "combination [vehicles] still only pay 90 percent of their cost responsibility, and the heaviest combinations may only pay 60 percent of their highway costs."

Unless trucking companies pay the increased costs to accommodate LCVs, those costs will be passed on to citizens in the form of increased taxes, special assessments, or construction bonds for highways.

I agree w/you that the SUV tax loophole should be closed as well.

Edited

30ashopper avatar
30ashopperSoWal InsiderAuthor
#10
Well so far I don't think anyone has come up with anything that would fill a 3 to 4 billion dollar hole. (Not even Bob succeeded since an income tax would require a Constitutional amendment.) One thing seems clear here - tax increases seem popular, but most of these appear to be aimed at areas where the poster would not be directly effected. I was waiting for someone to suggest a property tax increase - fair and evenly distributed among those who can afford lands. Apparently though hammering the lower classes with consumption taxes and niche taxing of private businesses is more popular. I'm not surprised.
Bob Wells avatar
Bob WellsBeach Fanatic
#11
Well so far I don't think anyone has come up with anything that would fill a 3 to 4 billion dollar hole. (Not even Bob succeeded since an income tax would require a Constitutional amendment.) One thing seems clear here - tax increases seem popular, but most of these appear to be aimed at areas where the poster would not be directly effected. I was waiting for someone to suggest a property tax increase - fair and evenly distributed among those who can afford lands. Apparently though hammering the lower classes with consumption taxes and niche taxing of private businesses is more popular. I'm not surprised.
I think a property tax is an excellent idea, you are correct it would be distributed equally based of what you own or rent. I think maybe folks were attempting to think of new and ingenious ways and not a tried and true method already in place, because not one person said that they were opposed that I read anyway. Maybe trimming what the state collects and leaving it to the locals to fend and narrowing what the state is responsible for is the way to do it. The State is already turning over the DMV's to the local governments, although they are continuing to take a bite out of the Clerk Of Courts. But in the end the locals will be paying a larger share of the DMVs and the state will want their share no matter the lack of oversight they are going to provide. Just like schools, the state gives less and less and expect it to be made up at the local level.
Bob Wells avatar
Bob WellsBeach Fanatic
#12
Oh and I am opposed to a State Income tax.
scooterbug44 avatar
scooterbug44SoWal Expert
#13
I am opposed to a state income tax too - and I think if we implemented most of my suggestions it would save us at least $3 billion. :wave:

Frankly I would li
scooterbug44 avatar
scooterbug44SoWal Expert
#14
I am opposed to a state income tax too - and I think if we implemented most of my suggestions it would save us at least $3 billion. :wave:

Frankly I would like to see us change lots of rules so that those running up bills are somehow paying for them/offsetting the costs.
GoodWitch58Beach Fanatic
#15
there is no one way to make up the difference; it takes a combination of many things; and mostly it takes people who are courageous enough to look at the issue from an overall, comprehensive perspective. We need to do things diffferently and we need to do it in a progressive, constructive way, not a regressive way that hurts the "least among us" the most.
30ashopper avatar
30ashopperSoWal InsiderAuthor
#16
A new forecast from state economists increased the pressure on lawmakers to cut spending Friday, adding about $135 million to a previously estimated $3.62 billion shortfall for the next Florida budget.

That boosts the Legislature's spending reduction target to $3.75 billion for the fiscal year beginning July 1.

The budget gap widened although the economists made relatively small changes - less than 1 percent - in their estimates for recurring general revenue in the current and next budget years.

"Even though it's modest I think we all recognize it is going to be painful to the Legislature to deal with any greater losses over what they have," said Amy Baker, coordinator of the Legislature's Office of Economic and Demographic Research.

Leaders of the Republican-controlled Legislature have taken tax and fee increases off the table, so the only way lawmakers will be able to close the 2011-12 budget gap is to cut spending and public services including education, health care, social services, prisons and courts.

Economists from the Legislature, Gov. Rick Scott's office and the Department of Revenue meet three times a year to update general revenue estimates.

They increased the current year forecast for recurring general revenue by $31.3 million, raising the total to $22.4 billion. Next year's estimate, however, dropped by $215.8 million to $23.8 billion. That's still a 6.4 percent increase over the current year.

General revenue represents about a third of the state budget which currently is $70.5 billion. The rest is federal money for such programs as Medicaid and transportation and state trust fund revenue. Those are taxes and fees earmarked by law for specific purposes such as utility taxes for school construction and fuel taxes for roads and bridges.

Lawmakers have little discretion over spending paid for with those two revenue sources so most of the cuts will come in programs funded by general revenue.

TBO.com - Florida News From AP

I had no idea that Florida only generates about 30 billion in real revenue. The other 40 billion we borrow from China through the feds.
scooterbug44 avatar
scooterbug44SoWal Expert
#17
They refuse to raise fees/taxes and want more tax breaks for corporations.

In what world do they think that helps the budget? :idontno:

Math 101 dumb politicians!
30ashopper avatar
30ashopperSoWal InsiderAuthor
#18
They refuse to raise fees/taxes and want more tax breaks for corporations.

In what world do they think that helps the budget? :idontno:

Math 101 dumb politicians!

I don't think there's any chance of the corporate tax rate being cut, at least not this year. IMHO this was a dumb thing to push right now by Scott. The overall effect on business here isn't that major (5.5% is already low compared to other states) and the revenue (about 2 billion) is not that signifigant either. All it does is make Scott look bad. He should drop the subject.
Bob avatar
BobSoWal Insider
#19
all those bluehairs living in the highrise beachfront canyons can start kicking income tax
30ashopper avatar
30ashopperSoWal InsiderAuthor
#20
all those bluehairs living in the highrise beachfront canyons can start kicking income tax

Nope, not going to happen.

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