Charlie Crist

Governor Charlie Crist wants to increase state spending while lawmakers are looking for ways to reduce government. Crist’s plan holds state workers harmless, increases school spending and pumps millions into environmental projects. As Whitney Ray tells us, lawmakers call Crist’s plan “ambitious.”

After four straight years of declining revenues, Governor Charlie Crist is calling for an increase in state spending.

“We have got to move forward on education, that we have a re commitment to our environment and I think those two things are important to Florida’s economy,” said Crist.

Crist’s budget increases education funding by half a billion dollars, pumps 100 million into the environment and offers tax breaks to businesses. Florida Tax-watch calls the proposal optimistic.

“It doesn’t really get into cutting government and getting into what normal Floridians are doing, tightening their belt, finding ways to do more with less, focusing on core services and eliminating operational expenditures,” said Rob Weissert a spokesman with Florida Tax-watch.

Crist’s spending plan relies heavily on money from increased gambling, raids on trust funds and an uptick in revenue collections.

Over the past five months the state has collected more money than predicted, that trend is expected to continue.

Money from fee increases could also pump millions into the state’s checking account, but state lawmakers aren’t sure the boost will be enough.

“It’s ambitious. It’s our job to look at his categorization of the various priorities of spending and then craft a budget in cooperation with the senate,” said State Representative Dean Cannon.

If revenues don’t increase as much as the governor predicts, and a gaming compact isn’t reached, lawmakers will have to make tough decisions that could include spending cuts and possible layoffs.

One of Crist’s ideas receiving applause from Republican legislative leaders is reworking the class size amendment. State lawmakers are scheduled to unveil a plan tomorrow that would base class size on school populations instead of individual classes.

Charlie Crist

Gov. Charlie Crist’s new U.S. Senate campaign ad continues to backfire. First, morning show host Many Connell deconstructed it on-air as, essentially, a vomit-provoking “lie.” Now Cato Institute’s Tax Policy Director Christ Edwards, who gave Crist an “A” in his Fiscal Policy Report Card on America’s Governors,” is annotating Crist’s decision to mention the grade in the Connell-maligned radio ad.

From an Edwards email:

According to the Herald’s Naked Politics (October 16), Gov. Charlie Crist is trumpeting his grade of “A” on Cato’s “Fiscal Policy Report Card on America’s Governors.” The governor earned the grade in last year’s report based mainly on his property tax cuts and moderate spending approach.

I am pleased that Crist values Cato’s ratings because we work hard to make them accurate and nonpartisan. But as the report’s author, I am concerned that the governor has fallen off the fiscal responsibility horse since the report was written in mid-2008.

In particular, Crist approved a huge $2.2 billion tax increase for the fiscal 2010 budget, even though he had promised that $12 billion in federal “stimulus” money showered on Florida over three years would obviate the need for tax increases.

About $1 billion of the tax increases are on cigarette consumers, which will particularly harm moderate-income families. The rest of the increases are in the form of higher costs for often mandatory services, such as automobile registration, which is really just a sneaky form of tax increases.

These tax increases will be particularly painful to Floridians in the short-term because of the recession. But Crist has also jeopardized the state’s long-term finances with his expanded subsidies for hurricane insurance. Hurricanes are a major challenge in Florida, but giving big subsidies to coastal property owners, driving private insurers out of the state, and guaranteeing a massive state bailout when the next hurricane hits strikes me as the height of fiscally irresponsibility.

Sincerely,

Chris Edwards
Director of Tax Policy
Cato Institute
Washington, D.C.
Author of “Fiscal Policy Report Card on America’s Governors, 2008”

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