House: Reserves will cover bigger budget hole

The Legislature, which takes up a $512-million cut bill tomorrow, will not need to slash more from the current fiscal year budget despite worsening revenue estimates.

This according to House Speaker Marco Rubio and budget chief Ray Sansom, who spoke at a 4:30 p.m. news conference.

Unspent money from the current year -- not the "rainy day fund" -- will be used to absorb the difference, they said. (That's the approach House Democrats suggested last week to minimize some of the cuts.) State budget wonks are expected to announce that the current fiscal year revenue hole is $1-billion.

-- Alex Leary

Rubio continues to see opportunity in the situation, saying it justifies more property tax cuts and a revenue and spending cap at all levels of government. "We are in a two to three year cycle where many of the decisions we make will determine how quickly we rebound."

The hole for the next fiscal year is growing too, of course. And that could bolster Gov. Charlie Crist's argument that the state should dip into trust funds and seek other revenue sources.

“Yeah, if it was a one year downturn," Rubio replied. "But it’s not. I’m looking right now at something that looks like a three year downturn. I’m a termed out legislator. The easiest thing for me to do is go into trust funds and reserves and make this year the best possible year. But it would be irresponsible and unfair.”

Sansom agreed, calling it a “very dangerous way to balance the budget when the economy is slowing down.” He added: “We’re doing what we believe people in Florida have asked us to do, and that is to reduce spending just like they’ve had to.”

Senate President Ken Pruitt issued a statement that also said additional cuts would not be needed for the current fiscal year budget.

"The drop in revenues is significant, and it puts the state budget in a very serious situation," Pruitt said. “I am grateful that we have seasoned veterans in the Senate who have navigated through fiscal challenges before. We must not take financial shortcuts in order to avoid the political heat that budget reductions will bring. We are going to need everyone to pull together to get through these difficult times. Florida’s economy has been robust, and I believe once we weather this correction period, we will see those prosperous days again."

Comments

Gee...it seems like I've heard this approach before...it was from....the....uh...who was it? Oh yeah, the Governor said this over a month ago....stop playing the "doom and gloom" game children...you are going to really cause things to get worse if you don't follow the Governor's lead.

and when THOSE reserves are gone, what will we do then, goobers?

thankfully, i gave up ethanol for lent. otherwise................

There is no leadership in the whole state of Florida with the exception of Mark Rubio and he's only a little better than the rest. Most of these clowns only care about getting re-elected. No one cares about our future. Our state is one hurrican away from being bankrupt (due to the Citizens debacle). The A1 Const. Tax Amendment is going to kill our state's economy in a few years. And ol' One Term Charlie spends more time in McCain's lap and in the tanning bed than he does solving our state's problems. What a bunch of losers!

I guess Rubio is disappointed that the state isn't totally bankrupt so he could just close up shop entirely (except for his staff and dozen or so $10,000 per month consultants).

Leadership from Rubio...

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!

That has to be the best joke ever!

Its not 1 billion, its 3.6 billion. Yes - 3.6 BILLION with a B.

[Ima Fedup]

There are no "seasoned veterans" in the legislature. With the imposition of Term Limits, those seasoned veterans have been long gone. All we have now is a bunch of two term rookies with self-serving ideas and who generally dismiss and ignore what committee staff has to say.

5:23 - unfortunately, most of the experience staff have been fired, driven out, or retired and replaced with cute young things or young white males whose interest is in making "connections" for their "next" job.

[Ima Fedup]

Eye Candy and Job Sharks. You left out "Gold Bricks" 5:54

[terminator]

5:52
get off the crack jerkweed.
this is unspent money from this fiscal year not RESERVES!

you and your buddy Cristi would take the easiest way out so you can go about with Chuck's VP campaign....more responsible legislators like Rubio are willing to make the hard decisions that sun tan Chuck shudders just thinking about.

Charlie reminds me of the guy at the end of Animal House while watching the entire town parade devolve into mass chaos due to the Delta's led by the devilish John Belushi all the while screaming...."all is well, ALL IS WEll".

Got news for you Charlie the tuna....all is NOT well.

Now get your *ss back to the Gov's office and start cutting our taxes and insurance!!!!!!!!!!!!!!

Dear Termie a/k/a Rivera...he HAS cut taxes, he HAS cut insurance costs...not as much as any of us would like..but those reductions are a FACT. He also proposed using unspent money as well as unused reserves to get us partially through this budget cycle..moreover, he was the first to proposed reduced spending....last January.....you tired anti-Crist rhetoric is pathetic.