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Jan 11, 2009 8:41 pm US/Eastern
Florida Budget Decisions Agreed Upon Sunday
TALLAHASSEE (AP) ―
Florida lawmakers have completed a plan to fill the state's at least $2.3 billion budget hole with more than half of the money from the state's last-resort reserves and up to $700 million the state has from a settlement with the tobacco industry.
Both details had been major points in House and Senate negotiations at the state Capital. The cuts leave the state with about $250 million in reserves, the lowest amount in more than ten years. In addition, the approximately $1 billion tobacco endowment could be drained by more than two-thirds. Lawmakers hope to repay at least part of what they take with money from the federal government.
Leaders of the budget negotiations agreed Sunday not to take any more money out of spending on transportation to fill the budget gap. House members wanted to strip more than $200 million from spending on roads, airports and other transportation construction to cover shortfalls in other areas. Senate lawmakers refused, saying the money would help stimulate Florida's economy and create jobs.
Lawmakers will also take $190 million from a trust fund that helps provide affordable housing. They argued whether to make up for only the current $2.3 billion shortfall or have on had more money in case the state's finances worsen before the end of the budget year on June 30. On Sunday, they decided to create at least a $400 million cushion in case the state's finances worsen.
Florida's economic decline and the national recession forced lawmakers into special session to make budget cuts.
The revised budget must now be passed by both chambers; the vote could happen as soon as Wednesday. The two-week special session ends Friday. Lawmakers will begin their 60-day regular session in March.
Key West Representative Ron Saunders, who leads House Democrats in budget negotiations, said he was pleased they had been able to keep money for transportation projects and would not cut affordable housing as drastically as has had been proposed.
But Saunders is worried about the cuts to the Lawton Chiles Endowment, which spends tobacco money on health care programs for children and the elderly. Saunders' had hoped to only tap the endowment for $400 million, rather than the $700 million the Senate proposed.
"We were concerned before. I guess we have twice as much concern now," he Saunders.
The family of Lawton Chiles, the former governor for whom the fund is named, has said it intends to fight the Legislature's decision to take the money in court. Lawton "Bud" Chiles III, Chiles' son, reiterated the same Sunday after budget negotiations ended.
"We see this as a battle but certainly not the last battle," Chiles said.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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