Senate Preps 'Smart Cap' Bill for Final Vote

A bill that would limit state revenues by tying them to inflation and population growth is ready for a final vote in the Senate after receiving its first airing on the Senate floor Thursday. The bill would place a constitutional amendment before voters in 2012, allowing them to pass the revenue cap.

Some Democrats expressed concerns about how the bill would affect Florida's bond rating, and suggested that the bill, known as "smart cap," would increase the cost of borrowing money for the state. Sen. Gwen Margolis, D-Sunny Isles, offered an amendment taking the bond rating out of the cap, but it failed in a voice vote.

"When you limit your revenues in the Constitution, you're limiting your ability to bond. We're talking about infrastructure in a growing state," Margolis said.

But Sen. Ellyn Bogdanoff, R-Fort Lauderdale, who sponsored the bill, said the cap would not adversely affect the state's bond rating.

"Becauseit's only one of five factors (affecting ratings) it would only be a deminimus effect on our bond rating," Bogdanoff said.

The Senate is expected to vote on the bill next week.