Feb 1, 2008 5:36 pm US/Eastern
Governor Says No Tax Increases With New Budget
MIAMI (CBS4) ―
A $70-billion state budget was proposed by Governor Charlie Crist Thursday in an effort to increase spending on programs and motivate business, but relies on schools to collect more property taxes, depletion from trust funds and depends on more money from gambling to avoid deep cuts.
The plan proposed more spending on health insurance for children, and several programs to move the state toward energy diversity. The budget for the next fiscal year also includes more money for unspecified help for adults without health insurance.
To make the spending plan work with less tax money coming in, Crist relies heavily on $1.1 billion in reserves, including diverting $400 million from the Lawton Chiles endowment fund, which is made up of money from the state's 1998 settlement with tobacco companies. Crist said he spoke to Gov. Chiles' widow, Rhea Chiles, and received her blessing to tap into the account to shore up the budget.
The budget also relies on money from the state's recent deal with the Seminole Indians for some casino revenues. The budget includes $130 million from the compact, even though it is the subject of ongoing litigation.
The proposal also includes about $400 million from Lottery "game enhancements," which are expected to increase income from lottery ticket sales, although Crist wasn't specific about how that would work.
The plan will also continue the sales tax holidays on back-to-school items and hurricane preparedness purchases.
The plan for the fiscal year that begins July 1st goes to the Legislature, which writes the budget, often using the governor's proposal as a template.
Crist has veto power over the budget items the Legislature eventually includes.
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