FL Democratic CFO still trying to get the attention of FL Republicans...dire economy.

[madfloridian]

They do not want to hear about it. They simply want to ignore it. The Republicans totally control Florida and will for many cycles to come. Alex Sink is the only Democratic elected official in the state. They are ignoring her.

They have been dipping into the Lawton Chiles Endowment Fund for healthcare, and they are planning to dip some more. She is warning them.

Sink: Lawmakers can't count on Chiles fund to bail out state government

Florida CFO Alex Sink has been making a public push in recent days for Gov. Charlie Crist and lawmakers to come back to work in December to shore up the state's finances.

One of the reasons they're reluctant: the Legislature last spring already gave Crist the power to plug up to $1.6 billion in revenue declines by tapping part of the balances from Florida's budget stabilization fund and another Lawton Chiles Endowment fund for health care set up through the state's tobacco settlement. They've already tapped about $625 million and should still be able to draw another $783 million to plug budget holes.

But Sink said Wednesday that might not be such a good idea. A lot of the endowment is tied up in fixed income and equity investments that would have to be sold, likely at a loss. Back in the summer, the Chiles fund had $2.1 billion. As of this week, that balance had plummeted to $1.5 billion this month, according to Sink's office. Part of that is because the state has already sapped some $118 million and Sink suggested the rest of the value had gone the same direction as millions of 401(k) retirement funds.

That makes it even more urgent for lawmakers to start making tough decisions on where to cut now -- earlier in the fiscal year when they might have more options -- rather than waiting until the March start of regular session, Sink said.

She has been warning them for a while. It is like she keeps warning, and they keep ignoring.

Sink says call special session NOW

Republican leaders are in denial about the dire economy and they should call a special legislative session now to deal with the impact on the state budget.
Sink, speaking to the Council of 100 in Palm Beach, said a possible $1-billion gap in state funding demands attention now, not later.

"I do not see any way we can afford to wait until March to deal with a potential $1-billion-plus shortfall in this budget year," Sink, the state's only elected Democratic executive, said in an interview later. "That's just an impossible situation."

Either the governor or the two leaders of the Legislature call special sessions, and so far Gov. Charlie Crist and new leaders of the House and Senate, all Republicans, are taking a wait-and-see approach. And Sink's criticism comes as Crist is reaching the midpoint of his term. Sink speculated that the unwillingness to call a special session is because it would reinforce a negative image of the economy and budget.

"It's going to be ugly. It's not fun," she said. "We did the easy cuts last year."

But even Alex Sink is not talking about doing something about the extreme corporate tax cuts in Florida.

From the TC Palm:

Florida and corporate socialism

Alongside the burgeoning ranks of government employees, the state’s business sector muscled its way to the public trough. While John Q. Homeowner dutifully pays his taxes, corporate lobbyists have tweaked the tax code to benefit corporate interests. Last year:

• Manufacturers received $71 million in sales tax exemptions on electricity.

• A handful of companies got a $64 million tax break on chartered fishing boats.

• Industries avoided $55 million in taxes on boiler fuels.

• Farmers dodged $61 million in taxes on everything from equipment to ostrich feed.

• Professional sports teams (owned by billionaires) netted $20 million in subsidies and exemptions.

This adds up to real money that could soften the blow on taxpayers, but, so far, none of these tax breaks are in jeopardy at the Legislature. Indeed, lawmakers are looking to pile on more corporate goodies, including an additional $3 million tax break for racetrack owners.

More about the percentage of the corporate breaks:

As state Rep. Curtis Richardson, D-Tallahassee, complained last week: "Over the past eight years we have given $18 billion in tax relief to the richest 2 percent of our population and corporate special interests. Now that the economic times have turned, we choose to place the burden on balancing the budget on those who are least able to afford it."

Sink is right about calling them out on it, but she needs to go a step further now. There are almost no more cuts to make to the needy and poor. Time to start demanding more of the corporate base.

[madfloridian]

1. Republicans to finishi up a conference at a luxury resort...

http://www.miamiherald.com/news/miami-dade/breaking-news/story/768165.html

"Chief Financial Officer Alex Sink said that state economists next Friday will likely announce that Florida's budget will lose up to $1.2 billion in revenue -- on top of the $800 million budget deficit.

Sink said lawmakers should quickly figure out what programs to cut and whether to find a way to raise new fees, taxes or other revenue sources.

''The time is now,'' Sink said. ``We know it's not going to be a pretty picture next Friday. Whether it's $700 million or $1.2 billion -- whatever the number is, it's ugly. And so we all need to be prepared very quickly when the final official word comes in.''

Right now, Crist and his fellow Republican leaders in the Legislature haven't sounded as urgent about the state's budget as Sink -- the only Democrat in the state Cabinet -- demurring questions about a special lawmaking session until after Friday's conference of state economists Nov. 21.

On that day, House Republicans will be wrapping up a three-day Panhandle getaway at the luxury WaterColor resort in Santa Rosa Beach. Incoming House Speaker Ray Sansom told reporters Wednesday that taxpayers aren't footing the bill for the annual event -- the state party is."

That's nice I am not having to pay for it.

[madfloridian]

2. Update: Tally newspaper calling for looking into FL financial problems

Wednesday's Editorial: Sink's call for special session makes sense

Lawmakers will meet in Tallahassee next week for their organizing session and swearing in of new members. Ms. Sink is urging them to address the situation if not then, soon, indicating it cannot wait until the March 2009 regular session in part because of certain rules governing repayment to trust funds.

Florida TaxWatch is also urging a special session in conjunction with next week's ceremonial assembly, but primarily to clarify portions of the state's corporate income tax law that could unintentionally cause businesses to lose depreciation deductions.

Florida's revenue shortfall is expected to continue to spiral downward, according to state economists. The public services that help define our quality of life and provide a basis for economic growth — public schools and universities — and the ones that measure our compassion and decency — health care for the needy — are at further risk.

Cuts in education spending are expected to be followed by more cuts, and education officials face having to close under-utilized neighborhood schools. Health-care advocates for the poor, too often forced to settle for crumbs, face having to settle for even fewer crumbs.

Yet, because of a failure of political leadership spanning many years and administrations, Florida lawmakers have avoided tackling meaningful revenue reform that would soften the blow in bad times without substantially restraining economic growth when times were good.

[madfloridian]

3. One last kick for Alex Sink and her efforts to save FL's economy.

.

[Divine Discontent]

4. they better not touch another dollar of medicaid or other state aid agencies

they need to go after the corps - ya know, I am in entertainment at the Mouse, and I know from people in ticketing that the revenue brought in from the 70+ dollar tickets is staggering - and most cast members at disney start out at 7+ an hour - that's it. These fat cat corporations not only pay poorly, but they also have sweetheart deals with the state about taxes - and I'm sure the Mouse has some. I think the industries need to start ponying up larger amounts and, I still cannot understand how people who make hundreds of thousands in FL don't have to pay any state income tax because there is no personal system set up for that for any working citizen - I just think these people making 6 and 7 figures need to be hit with some taxes to save their state that has granted them the ability to make so much... Even 1% would be something!

[madfloridian]

5. I am waiting for Sink to mention the corporate tax cuts, fearful she won't.

I hope she doesn't go along with the continued cuts in service without a real fight.

[byrok]

6. School teachers in Volusia County were just informed

that the school budget will be cut an additional 10% next year. This after staggering cuts were made already this year. Presently ranked 50th in the country, Florida schools are being devastated by the budget cuts.

"Education is the silver bullet" Sam Seaborn

[madfloridian]

7. I hear our county will hit very hard. Art, music, PE are the first to go.

But the corporation have their tax breaks. :eyes:

[byrok]

8. Most people are unaware

of what is happening in Volusia County schools. This "Big Wig" on Thursday indicated that something drastic involving teachers AND parents needs to happen. Problem is, most people either do not realize what's happening, or they do not care. The teachers are freaking out, but feel thier hands are tied. No one knows what to do.

[madfloridian]

9. The Democrats could speak up, the media could tell the truth.

But they won't and they don't.

Yes, I am retired, but I hear lots is coming down the pike. I am stunned when I talk to teachers who are still teaching.

Our Florida Democrats are really not good about speaking up about things. They could get on the news and holler about this.