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Quick Fix: Stimulus Money Plugs Florida’s Budget Gap

Leaning heavily on federal stimulus money, Gov. Charlie Crist today proposed a $66.5 billion state budget that includes no tax increases and calls for no layoffs of state employees.

“We are in an economic crisis,” Crist said. “We need money to get us to a better future.”

Crist, who has drawn some heat from fellow Republicans for embracing President Obama’s stimulus package, said he was able to increase per-student funding in public schools from an average of $6,860 to $7,044 which is still slightly below the 2007 level. He said “we must be fiscally responsible,” with emphasis on protecting the most vulnerable — children and the elderly — while meeting rising prison population and law-enforcement needs.

Unlike California and some other states, which have made massive budget cuts, laid off employees and put some state workers on furloughs, Florida will avoid major personnel pain. But he said his administration will work with the Legislature to “remove unnecessary red tape and streamline regulations” for greater efficiency.

Crist said that only by using $4.5 billion from the federal stimulus package was he able to avoid severe budget cuts or tax increases. The state doesn’t like to use non-recurring revenue for year-after-year expenses, but Crist said the federal money should be viewed as “a bridge” to economic recovery over the next three years.

Crist said the budget calls for $120 million in fee increases.

The budget now goes to the House and Senate, which convene on March 3. Senate President Jeff Atwater, R-North Palm Beach, and House Speaker pro tempore Larry Cretul, R-Ocala, praised the governor’s work but didn’t endorse his budget entirely.

Atwater said Senate committees, which have been grilling department heads for weeks on their spending needs, will wait for the March revenue estimates and continue “line-by-line, program-by program” examination of state agencies. Cretul said next month’s state revenue update “will provide us with more accurate information on our resources,” but he wasn’t as thrilled with the federal stimulus package as Crist was.

“Adding federal stimulus money to the Florida economy may help Floridians during these harsh economic times,” said Cretul. “However, the stimulus money cannot be seen as the only solution to balancing the state’s budget.”

Source: tallahassee.com

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