Rick Scott Stresses Fiscal Conservatism in White Paper

On Monday, Gov. Rick Scott released a white paper making fiscal conservative arguments to lower the scope and size of Floridas government.

The document highlights Scotts call to reduce Florida taxes by $500 million:

The State Revenue Estimating Conference announced that the general revenue forecasted for 2014-2015 in Florida will be the highest ever. Governor Scott believes that more revenue into the state means government must return more tax dollars to the hard-working people of Florida. Thats why Governor Scott is fighting to cut Floridians taxes and fees by half a billion dollars -- $500 million in his proposed fiscal year 2014-2015 budget.

Working with the Florida Legislature, Governor Scott cut taxes year after year, even while forcing government to live within its means. Governor Scott and the Legislature have enacted numerous tax cuts over the past three years, including: the elimination of the sales tax on manufacturing equipment to help jump-start manufacturing investment; continuing to roll back the business tax, so that today around 70 percent of our businesses no longer pay it; and a property tax cut for homeowners and businesses.

Cutting taxes, right-sizing government, and reducing regulations means businesses have the support they need to create jobs for Florida families.

The white paper also focuses on lowering the state debt:

Governor Scott will not allow the state to commit to any long-term debt obligations that do not yield a specific return on investment or internal rate of return.

Traditionally, the state of Florida has grown long-term debt obligations each year by maximizing all available bonding capacity to fund projects like roads, land acquisitions and education facility construction. Outstanding state debt increased annually and more than tripled from 1992 through 2010 before decreasing in each of the past three fiscal years, reversing a long-term trend of near billion-dollar annual increases. Specifically, this debt has been reduced by a total of $3.5 billion over the past three fiscal years from $28.2 billion in 2010 to $24.6 billion in 2013, including a reduction of $1.6 billion over the last fiscal year. The decrease in debt during 2013 is primarily due to payments of principal exceeding new debt issuance during the year. At a time when Fitch Ratings has placed the United States credit rating on negative watch, they have conversely, revised Floridas outlook from negative to stable. Because of responsible business practices under Governor Scotts leadership, he will be the first governor in Florida history to end a term with less public debt outstanding than existed when he was elected.

To continue this practice of guarding taxpayer debt obligations, Governor Scott will not allow the state of Florida to take on new long-term debt obligations to fund roads, land purchases or education facility construction without specific and accountable returns on investment for taxpayers. Where possible, the state budget will include the use of cash, rather than bonds, to further protect the state from consequences associated with massive amounts of taxpayer-funded debt.

The white paper concludes with a call for cutting government:

Governor Scott will require all state agencies to eliminate government waste and propose a total of at least $100 million in reductions for the fiscal year 2014-2015 budget.

In business, Governor Scott knew that companies had to become more efficient and reduce costs for better services by 2-to-3 percent each year to remain competitive. Taxpayers deserve no different from the government that they fund. Accordingly, the Governor has recommended and the Legislature has agreed to reduce costs for government programs each year since he was elected.

In proposing his Its Your Money Tax Cut Agenda,the Governor will ensure that all state agencies continue to recommend reductions in spending each year to eliminate government waste, which will in turn free up dollars to be returned to taxpayers, pay down debt and place funds in reserve for events such as hurricanes.

Governor Scott will hold state agencies accountable for continuously reviewing all state contracts in order to identify savings.

Since October 2012, 16 different state agencies and more than 45 private-sector businesses have been recognized for identifying more than $146.3 million in cost savings and $34.2 million in services.

Savings achieved through these efforts include:

$117.2 million in cost savings from renegotiated contracts;
$15.9 million in cost savings from newly negotiated contracts;
$13.1 million in cost savings from contract renewals;
and $34.2 million in value added services from contract renegotiations.