Florida Held Hostage: Day 28 - The State Budget Crisis

Keep in mind as you read this that Florida's latest release unemployment rate is 8.6%, actual unemployment here is much higher, we have a huge budget shortfall, our economy sucks because it is tightly coupled to tourism and real estate development both of which are in the tank because of the national economy, our education system is 49th in the nation in per student funding ( I suppose MS is #50) , 25% of Floridians have no health care, and our insurance system is just one hurricane away from total collapse:

FOR IMMEDIATE RELEASE
March 16, 2009

CONTACT: Mark Hollis
(850) 488-9622

THE STATE BUDGET CRISIS
Florida Held Hostage

-DAY 28-

How many more days until State House Republicans Accept Florida’s Full and Fair Share of Federal Economic Stimulus Funds?

TALLAHASSEE---President Barack Obama signed historic legislation on February 17, 2009 that would bolster t he economy and put America back to work. Today, Florida House Republicans are still dodging the question that Floridians want answered:

Will House Republicans accept Florida’s full and fair share of federal economic recovery funds that President Barack Obama and Democrats in Congress are providing to help rebuild our economy?

Florida House Democrats believe these federal funds targeted at Florida’s infrastructure, workforce training, educational and Medicaid needs will create jobs and stimulate investment.

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FOR IMMEDIATE RELEASE
March 16, 2009
CONTACT: Casey Kustin
850-487-5091

DOLLAR INCREASE ON CIGARETTES PEGGED AT MORE THAN $900 MILLION

Senator Ted Deutch Calls for Action on Heels of Growing Budget Deficits

Boca Raton, FL – Senator Ted Deutch (D-Boca Raton) responded to this weekend’s prediction by the state’s Revenue Estimating Conference that his cigarette tax legislation, SB 1840, would raise nearly $900 million in the upcoming fiscal year, noting that in the wake of Friday’s dire prognosis of Florida’s overall budget picture it is more important than ever to expedite consideration of his bill. Deutch pointed out tha t in addition to potentially plugging certain holes in Florida’s crisis-ridden healthcare budget, including the provision of a recurring source of funding for the perennially-threatened Medically Needy and Medicaid Aged and Disabled programs, his proposal also includes a significant stimulus component with thousands of clean, high-wage jobs in the research and biotech sectors that would help prime the pump of the state’s economic recovery when it is needed most.

“We immediately need to fix our state’s recurring fiscal problems, and assessing cigarettes in a more sensible manner relative to their actual impact on our budget is a great place to start,” said Senator Deutch. He added, “Moving forward, we also should do it in such a way that revenues generated by our tax and fee policies are invested in a healthier, long-term future for Florida. My bill balances that need responsibly.”

Deutch repeated his assertion, shown to be accurate by the state’s own economists, that a dollar increase in the state’s cigarett e tax, the 6th lowest in the nation at a mere 33.9-cents per pack, would significantly narrow the gap in what the state collects annually from tobacco users ($430 million) versus what Florida spends on tobacco-related illnesses through the Medicaid program ($1.3 billion). He also lamented the fact that all Florida households, including the roughly 80 percent without a single tobacco user, are saddled with an annual tax burden of $586 to cover the state’s smoking-related Medicaid tab, an increasingly tough pill to swallow in an economy in which many families are struggling just to put food on the table.

“Everyone is looking for an acceptable recipe to address our budget crisis,” Deutch commented. “My bill is equal parts common sense and fairness, and more than 70 percent of Floridians consistently say they want this issue on the table.”

As this weekend’s official revenue estimate was attached to his bill, Deutch urged his colleagues to take up SB 1840, which sits in the Senate Finance and Tax Committee, this coming week. While doing so, the Boca Raton senator also braced for an exceptionally vigorous fight from the opposition, especially given the fact that the stakes are so high in Florida, which realizes more yearly cigarette pack sales than any state in the nation at 1.3 billion, as well as the country’s leading level of tobacco industry marketing expenditures at $930 million.

“I welcome a debate on the question of further lining the pockets of Big Tobacco versus helping to stabilize our budget, save lives, and prevent kids from taking up a deadly habit,” Deutch stated. “There are many tough choices we need to make in Tallahassee, but this isn’t one of them.”
Lastly, Deutch noted that all but four other states, with leadership on both sides of the aisle, have logically increased their cigarette taxes, many on multiple occasions, since Florida last did so way back in 1990. The majority, he noted, have done so in the last five years. Meanwhile, the sunshine state’s budget deficits have exploded, while tobacco companies have flourished.

“This has got to stop,” Deutch stated. “The time has come to put the interests of Florida and its kids first for a change.”
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Michelle DeMarco
Press Secretary
Florida Senate Democratic Office
850-487-5833

funding stand off. Borrow from the prepaid tuition plan.

That went over real well. Maybe it is time to consider a state income tax??? Or perhaps you can raise the taxes on tourists some more. Whenever I go to Florida (to visit family) I say that the mouse has stuck his hand in my pocket. He doesn't take it out until I am on the plane flying back home. I can't say for sure that the taxes on tourism has impacted my decision to visit, but his had persuaded me to stay more with family instead of visiting some tourist locations.

Rich DeVos for instance...

There's a lot of options but the homestead exemption system here has a lot to do with the problem.

The economy being so narrow in terms of tourism and real estate development instead of having significant mfg, energy and high tech sectors is also to blame.

Florida could be a huge boom state in energy production if we'd invest in offshore wind farms and solar electricity for instance.

In general I hate the amount of resources devoted to sports in this country, but an individual can spend their money any way they choose. It stops when you start talking about spending the people's money. I don't buy those economic studies that say that sports bring in so much more dollars yada, yada, yada. It is like casinos in my state. Most other businesses (food and drinking establishments) have reported less business with the introduction of these casinos, and they get to have a different set of rules (such as being able to smoke in their restaurants and on the floor unlike for the other establishments in the state.

We got a lot of wind farms in our state. Seems to be more turbines everytime we head north.