Posted on 07/02/2007 7:24:28 PM PDT by snowsislander
Crist: 10 percent budget cuts are possible
TALLAHASSEE Gov. Charlie Crist and legislative leaders on Friday ordered state agencies to prepare for the possibility of 10 percent budget cuts, as tax collections continue to fall far short of expectations amid a housing slump.
At a minimum, top budget officials said they expect to slash 4 percent across the board, or as much as $1 billion from a $71 billion budget that formally goes into effect Sunday.
"Agencies should take responsible action now to reduce discretionary spending such as travel and equipment purchases, fill only essential vacant positions, and delay implementing new or improved programs with recurring costs until reduction plans are finalized," budget aides to Crist and the Legislature wrote in a memo to agency heads.
The order to identify and prioritize possible spending cuts — which Crist's office required be done in "plain language" without "program, technical or budget jargon" — follows several months of increasingly grim financial updates.
Tax collections have fallen nearly $320 million short of estimates since March, according to the most recent state figures. That's when a panel of state economists last met to update the state's two-year revenue forecast — a meeting at which they were already forced to slash a full $1 billion from their estimates.
Sales and corporate income tax collections have slumped particularly hard. But taxes on real-estate transactions, insurance premiums and corporate filings are also down.
[ ... ]
(Excerpt) Read more at sun-sentinel.com ...
Real, true, actual budget cuts? From ANY level of contemporary American government?
Hot damn.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
I believe it is spelled F-u-e-L c-o-s-t.
I’m not quite sure Crist is a RINO. He definitely strays in RINO territory, but at the same time, he’s definitely not another Schwarzenegger. I’m still describing him as “not as conservative as Jeb Bush.” And, really, not too many people can claim to be as conservative as Jeb.
I believe it is spelled Insurance Costs.
Insurance costs in Florida I have heard are really getting bad. Hurricanes, Tornadoes,Fires and sink holes, are driving costs up faster than people can afford.
From waht I understand this is the first year that more people are moving out of Florida thanare moving in.
Crist is Specter with a tan...a fake tan. It looks like f#cking orange juice.
Ugh, don’t remind me. Crist looks like he survived a nuclear explosion.
You got that right, Sarg - homeowners insurance rates around here (Tampa area) and all over the state have suddenly doubled this year ... this is a pretty hefty increase from a newly elected gov who campaigned to “Stop the insurance companies from bankrupting Floridians!”
Bingo. Plus, property taxes aren’t helping, and the ridiculous plan the legislature pushed through is best described as a double-edged sword. It helps now, hurts later.
Let the record show that I did not vote for him.
I did, but held my nose as I did so. (I also voted for Harris; can we somehow swap her for Martinez?)
People are hunkering down and trying to save money for gas to get to work. It was bound to happen after they max out their credit cards.
Florida’s real estate tax system is a big part of the problem. The amount of taxes and insurance on a property is not based on a fixed assessed value, but actually the last price that was paid for it. As I understand it, they add up to about 3 percent of the sales price. If a house went for 200K today, its annual real estate tax and insurance would run $6000. Also, that 200K house would go for only 100K in most of the country.
At least Crist is doing the right thing. Spending cuts will lead to a much faster recovery than tax hikes.
fl-ping
If he had, he'd have been one step ahead of a lynch mob; folks are pretty upset over taxes, with property taxes having risen on average 83% since 2001.
In fact, for the first time in memory, more families moved out fo Florida in '06 than moved in.
I have lived in Florida for 15 years and I can tell you that property values and insurance rates have increased at a ridiculous rate over the last two years.
How long has Jeb been out of office?
Property values were going up 10%/yr for years. No way an insurance co can insure a property for double without raising rates.
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