Richard K. Scher: The Florida cupboard is bare

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By Richard K. Scher

Let us begin with a familiar nursery rhyme:

“Old mother Hubbard

Went to the cupboard

To fetch her poor dog a bone.

But when she got there

The cupboard was bare

And so the poor dog had none.”

Florida’s financial cupboard is bare. And we, the residents of the Sunshine State, are the dog. We are hungry, but the state barely provides crumbs.

Two years ago the state budget was slightly more than $72 billion. Last year’s was less than $65 billion, more than a 10 percent drop.

In January 2009, the Legislature met in special session to slash $2.6 billion more because of shortfalls. As the regular session began this past week, legislative leaders warned of additional cuts totaling $5 billion, possibly more.

It is no secret that Florida’s economy is in shambles. It ranks near California, Arizona and Nevada in extent and rate of collapse. The major culprit is the atrophy of the real estate, mortgage, and banking industries, but no sector of the Florida economy currently shows much vitality.

How has the Republican legislative majority responded to the fiscal crisis? In its normal fashion of hacking and slashing budgets, using a meat ax to gouge away funds.

In the January session its targets were the usual suspects: education (K-12 lost about $500M), health care, programs for the poor and other social services. Easier to demand sacrifices from the politically marginal who don’t make campaign contributions, or always vote, than from their favorite business and agricultural interests, which do.

But one can legitimately ask how much deeper our legislators can cut before Florida no longer provides even a basic level of public services to the population.

Even as Republican legislators were busy taking funds from children, the poor and the sick, they were looking toward Washington, pointing to the stimulus package to fill needed gaps. How ironic, because not one GOP member of the Florida Congressional delegation voted for it.

Public finance specialists tell us that in times of economic distress governments have two choices. They can retrench, retreat, cut, thus compounding existing hardships. Or they can invest, expand, pump money into the economy.

Florida, following its dual traditions of low taxes, low services and the privatization movement masterminded by the now-sainted Jeb Bush (who sought to dismember state government and sell it to the private sector), has chosen the first course.

But Florida could follow the second, which President Obama has initiated, and in the process lift the unfair burden that has been placed on its most vulnerable populations as budgets are cut.

The Florida Tax Handbook documents that needed revenue is available from two sources: business and sales tax exemptions. But accessing them requires backbone, political courage, and a willingness to face reality, none of which the state GOP (with the notable exception of Governor Crist) has demonstrated.

Currently Florida provides as much as $75 billion in business tax exemptions. This figure is up from $40 billion in 1995-1996, when Gov. Bush started giving away the store to his wealthy business friends and supporters....
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Read the entire editorial on gainesville.com.
http://www.gainesville.com/article/2009030...upboard-is-bare#