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November 15, 2007

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Tax Collections Down Again

When will there be a blog entry about the impact of losing another $2.4 billion between now and the end of the 2008-2009 FY off of the already dire estimates of state revenues? This is the most important public education issue out there.

If the state cuts 40% of the $1 billion lost from public education, another $400 million must be shaved from the current year budget that already was reduced by $400 million in recurring revenue just 5 short weeks ago. If this happens, public education will receive a recurring increase of LESS than the increase received from property tax increases (largely the RLE).

Also, with 5 months already gone from the fiscal year, the impact of a $400 million cut (about 2.5% of the total education budget) would be doubled with only half a year to absorb the entire fiscal year's cut.

With nearly $600 million in year over year increased CSR costs, the state will have provided less than nothing for those costs if the cuts have to be made.

What is even more concerning is that even if nothing else happens this year, a huge cut would be needed next year. They have spent all summer and fall in Tallahassee and haven't accomplished one good thing.

Finally, if the Legislators are looking for a cheap (it doesn't cost them a dime) way to help revitalize the economy, they should undo the state mandated school calendar dates. If the public schools open two weeks earlier, they will move the impact of the state's expenditure on public education 4% earlier into the fiscal year which could spur some additional economic impact. Teachers, custodians, bus drivers and others who are not on 12 month contracts would start earning money (and spending it) earlier, which could help to move us to recovery.

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Get inside the world of Florida education with St. Petersburg Times staff writer Jeffrey S. Solochek and the rest of the Times education reporting team. We'll bring you up-to-date information about the latest education trends, fads and news and dig deep into Tampa Bay area school issues.

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