Federal stimulus dollars, brutal spending cuts over the years, and the Indian gambling money have helped to reduce Florida’s budget deficit to $2.5 billion, as opposed to the projected $5.5 billion gap projected one year ago. But, despite this much reduced shortfall, state analysts have pointed out this week that some spending won’t change much.
Notwithstanding the GOP claims of fiscal conservatism, Florida’s debt service as a percentage of state revenues was a manageable 5 percent when then-Republican Governor Jeb Bush took office in 1999. But, nine years later, under Bush’s successor, then-Republican Gov. Charlie Crist, that level had risen to an unprecedented 7.9 percent, although that slid backwards to new dollars available for Florida’s transportation bond program, analysts said .
According to state officials, earmarks of $2.1 billion would be made again next year to cover Florida’s record-setting debt levels.
Florida’s $26.4 billion in outstanding debt has climbed 57 percent over the past decade – with another $10.2 billion worth of borrowing expected to be issued over the next 10 years to meet the state’s current needs.
The state’s long-range financial outlook is expected to be adopted next week by the Legislative Budget Commission.
The annual $2.1 billion set-aside is expected to fall to $1.8 billion by 2014, forecasters said.
The News Service of Florida
