Florida Leaders Expected To Have $600 Million Surplus

September 21, 2015

Gov. Rick Scott and lawmakers will have more than $600 million in extra money as they craft budget proposals for next year, according to a draft report issued  by economic forecasters.

The projection included in the Long-Range Financial Outlook, which will be considered by a legislative committee next week, marks the first official estimate of the state’s surplus after accounting for continuing expenses and other spending decisions lawmakers generally make each year.

For the 2016-2017 budget year that begins July 1, there will be an estimated $635.4 million left, after normal spending and $1 billion in reserves — meant to help cushion the state against unexpected expenses — are taken care of. However, about $426.8 million of that surplus would come from one-time money.

The surplus is expected to decline after the 2016-2017 budget year, with the state having $583.7 million the next year and $222.2 million the year after that, with all of the leftovers being one-time money. Part of that is due to the continuing cost of recent tax cuts supported by Scott and Republican lawmakers.

Because the state’s economists issue new forecasts on a regular basis, it is likely that the numbers for outlying years will be adjusted up or down.

The numbers  will provide a framework for Scott’s budget request, expected before the end of the year. Lawmakers will return to Tallahassee in January for an earlier-than-usual annual session and will negotiate a final spending plan.

Senate President Andy Gardiner, R-Orlando, said in a memo to senators that the new outlook “demonstrates the feasibility of increasing per student funding to the highest level in state history” — a goal of Scott’s that lawmakers missed reaching last year. The State Board of Education has said it will make a similar request for the coming year.

Gardiner said he would ask the Senate’s budget writers to aim for $250 million in tax cuts, in part because of the projections about outlying years.

“This level of tax relief would further our ongoing commitment to reducing the burden of taxes and fees on Florida’s families and businesses, while also taking into account the impact on future budget years. … We have a responsibility to make spending decisions that maintain structural balance within our budget while being mindful of the impact current spending decisions will have in future years,” he said.

That would be less than the $372.4 million that the Legislature slashed for the current budget year, which was in turn less than Scott proposed in his budget to help fulfill a campaign promise of $1 billion in cuts over two years.

House Speaker Steve Crisafulli, R-Merritt Island, was less specific in a statement issued by his office about the financial outlook.

“This is further evidence that our conservative fiscal principles are working,” he said. “The House will remain focused on keeping Florida the best state in the nation to create jobs, cutting taxes for hard-working Floridians, and balancing our state’s budget.”

by Jim Turner, The News Service of Florida

Comments

6 Responses to “Florida Leaders Expected To Have $600 Million Surplus”

  1. Henry Coe on September 22nd, 2015 12:16 pm

    Just because they have a 600 Million dollars doesn’t mean they are managing the budget wisely. i.e. When the state moves offices where it owned the property to properties that are leased and sell the property the state use to own, it dumps a bunch of cash into the budget but that doesn’t mean it was a wise choice to sell the properties over the state owning those properties as assets that are passed on to the next generations of tax payers.
    Just because something looks wise in the short term, doesn’t mean that long term it was a good idea.

  2. Bob C. on September 22nd, 2015 12:08 pm

    @ M / Gop;

    Seems everyone wants lower taxes but they also demand more services.

    The MSBU method of taxing specific areas for their specific needs seems a fair way of paying for needs and services.
    That should, but won’t, ease the fussing about “Why do I have to pay for Their road”.

    Would really like to see the bulk of the BP / Deepwater Horizon penalty money here be used for the infrastructure such as replacing or improving drainage systems and road work rather than the “pie-in-the-sky” happy and fuzzy types of things some yuppies seem to want.

    Just sayin’

  3. E in Cantonment on September 22nd, 2015 11:22 am

    The only good thing I can say about the Escambia County Commisioners is that they are outing in a boat ramp on Perdido River, Hwy 90. This is something for the regular residents of Escambia County and not an area such as the Equestrian Center that is almost a waste of county money. Correct me if I’m wrong.

  4. Gop on September 21st, 2015 9:07 am

    M…Our county taxes are really low. I would rather they raise them to improve our schools, so the area is attractive to business.

  5. Jane on September 21st, 2015 6:23 am

    I am proud of our legislators and governor for taking a stance and using money wisely….maybe Washington needs to take lessons from Florida!

  6. M in Bratt on September 21st, 2015 5:33 am

    The Escambia County Commission needs to follow the example set by the legislature and cut some taxes, fees, and expenditures instead of staying on the direction of being the taxicrats that they have become.

Written by William Reynolds · Filed Under News