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Politics

Leaders Begin Scrutinizing Scott's Proposed Budget

February 6, 2011 - 6:00pm

After unveiling his proposed $65.8 billion budget in Eustis, Gov. Rick Scott headed back to Tallahassee to talk to the media while reaction poured in from leaders all across the state.

"The budget we put out is a jobs budget, said Scott who focused on job creation during the campaign. "The biggest issue in the state is jobs."

Scott pointed to his business background and said that this experience helped him craft his proposed budget.

"I started in the private sector trying to get the best return for the shareholder, said the governor. Now the shareholders are the taxpayers. Today this money is going to be spent to make sure we get a return."

Scott defended his budget from critics who have assailed his plan to require state employees to contribute to their pensions, noting that his proposal to move public workers toward a 401(k) style retirement plan was in line with developments in the private sector.

The governor also defended his two-year budgetary proposal and vowed to cut down on state regulations that hinder economic growth.

"If there's a regulation that's hurting business and not significantly benefitting the consumer we're going to get rid of it, said Scott.

Leaders across Florida mulled over the proposed budget, offering their takes on Scotts plan.

The GOP leadership that controls both houses of the Legislature praised their fellow Republicans proposed budget --which was $5 billion less than the one they passed the year before under Gov. Charlie Crist --for cutting back on state spending and not raising taxes.

Its impressive that after one month on the job Governor Scott has prepared a comprehensive budget so quickly, said Senate President Mike Haridopolos, R-Merritt Island. The Senate is dedicated to working with the governor to provide a balanced budget with no new taxes. The best way to improve the business environment in Florida is to keep taxes low and live within our means. We will do that. I also thank Governor Scott for unveiling his proposed budget directly to the people so that he can get feedback from the citizens of Florida.

House Speaker Dean Cannon, R-Winter Park, offered cautious optimism in his response to the proposed budget.

Governor Scott has proposed budget recommendations which he believes reflect the principles he espoused on the campaign trail, said Cannon. Over the next few weeks, we look forward to thoroughly reviewing these recommendations.

The first and highest priorities of the Florida House are to cut government spending and not raise taxes, added Cannon. I am grateful that Governor Scott shares these goals.

Republicans in the Legislature hoped that cutting the state budget would help Floridas sluggish economy.

Our most important responsibility in the Florida Legislature is to help get our states economy back on track, insisted Senate Majority Leader Andy Gardiner, R-Orlando. Senate Republicans will continue to work hard on policies that cultivate an attractive business environment in which the economy and jobs for Floridians can flourish again.

We will look for fiscally conservative solutions to balance our budget and lead us toward a prosperous economic future that means spending less rather than raising taxes, said Gardiner. It is important that we look to policies that encourage accountability and personal responsibility while protecting Floridas most vulnerable citizens.

Rep. Denise Grimsley, R-Sebring, the chair of the House Appropriations Committee, had kind words for Scotts budget proposal.

I am encouraged to see that Governor Scotts budget reflects our common goal of overcoming the $4.6 billion budget shortfall without raising or imposing new taxes on Floridians, said Grimsley. "Moving forward, the House Appropriations Committee will closely examine the governors budget as we work to address the many difficult decisions required during the appropriations process.

Democrats fired away at Scott and the budget, claiming it will do nothing to spur the economy while hurting state employees and the education system.

Today, Governor Scott proposed his jobs-killing budget, which absolutely will increase unemployment in Florida and would continue the failed Republican policies of the past decade that have left the Sunshine State with one of the worst economies in the nation, insisted former Sen. Rod Smith, the newly installed chairman of the Florida Democratic Party. In addition to killing jobs, the governors budget slashes funding for Floridas children, cuts disability programs for the most vulnerable in our society, and slashes veterans' funding while at the same time more than doubling spending on his personal office.

This budget from the governor is a frontal assault on the quality of life of every Floridian and will not create a single job, nor spur our economy forward; instead it takes us further into the economic ditch, continued Smith. It is shameful that Governor Scott is willing to put the public safety of Floridas communities and the education of our states children at risk while putting more Floridians out of work.

Smith was joined in denouncing the proposed budget by Democratic leaders in the Legislature.

While the governor campaigned against career politicians and against business-as-usual in Tallahassee, his budget reflects the same old policies weve seen for the last 12 years that helped dig the hole were in. If government has been the problem, then the problem has been themselves, said Senate Democratic Leader Nan Rich of Weston. Twelve years of Republican control of the Legislature and governors mansion have left us with one of the highest unemployment rates in the nation, despite having one of the lowest tax rates for big business. It is foolish to believe that lowering corporate taxes any further a tax first approved by the residents of this state in the interest of fairness will now magically spur job creation.

The retreaded voodoo economics we heard today will not right this ship, continued Rich. But it will drill more holes in our already badly damaged public education. It will further eliminate the life rafts hundreds of thousands of Floridians have had to turn to for basic survival because their jobs, their benefits and their homes have disappeared.

Governor Rick Scotts proposed state budget, if adopted by the Republican-controlled Legislature, would further stagnate Floridas economy and threaten public safety, insisted House Democratic
Leader Ron Saunders of Key West. Cutting transportation-related jobs and reducing funding for public safety efforts is the wrong approach. The state should focus more on reducing Medicaid fraud and wasteful state spending instead of attacking the pensions of our hard-working teachers, firefighters, police officers and other public servants.

House Democratic Caucus members are working with our Republican colleagues to produce a balanced budget for Florida that creates jobs in the private sector without destroying the retirements of middle-class Floridians, added Saunders.

Leaders from the states business community offered strong words of praise for Scotts proposed budget.

Over the next two years, Florida has a generational opportunity to completely reset our economy, said Mark Wilson, president and CEO of the Florida Chamber. Free enterprise has created more wealth and private-sector jobs than any other economic system in history. Governor Scotts proposed jobs budget is a refreshing sign that he is clearly focused on making private-sector job growth Floridas state mantra.

While Governor Scotts budget proposal reduces the size of government and cuts taxes for Floridians, it places strong emphasis on alleviating the burdensome regulations the Florida Chamber has repeatedly said prevent job creation and economic growth, added Wilson. By pumping $800 million into economic development over the next two years, Governor Scott is sending a loud and clear message that he is serious about moving Florida toward the new economy.

Wilson also offered some personal praise for Scott.

Long gone are the days of governing by polls and popularity contests, and putting the tough decisions off for another year, said Wilson. Just like families must do when they balance their checkbooks, Governor Scott is demonstrating true leadership by making our government live within its means.

Barney Bishop, president and CEO of the Associated Industries of Florida (AIF), said that Scotts proposal sends a strong signal that he is serious about getting Floridas financial house in order.

Like Wilson, Bishop praised Scott for making tough decisions.

Cuts to education and health care will inevitably raise concerns among some, but in the midst of a recession, government must cut expenses because raising taxes is a death knell for job creation, said Bishop.Critics will certainly accuse the governor of using state employee pension plans and health care to further his budget goals. But, the truth is, Florida taxpayers are the ones getting fleeced by a pension system and health-care benefit program unlike any now available in the private sector.

The only way to help the more than 1 million Floridians who do not have a job is to foster a climate where small businesses can grow and other companies want to set up shop in the Sunshine State, Bishop insisted. This budget seeks to take a giant step toward accomplishing that goal.

Leaders from Florida TaxWatch also offered words of support for the proposed budget.

"Governor Rick Scott is changing how Florida does business by laying out a longer-term budget plan than what Florida has seen in recent years, said Marshall Criser, who is chairman of TaxWatchs board. By being able to look ahead for the next few years, Florida families and business owners will be able to plan for the future with more predictability and certainty. The governor's budget protects what attracts employers to stay and expand in Florida by investing in healthy, educated and prosperous communities. The governor's two-year budget approach correctly identifies the state budget as a strategic tool rather than tactical device.Florida will meet the current economic challenges through this approach that balances present needs with where we need to go next."

The governor and his team have put forth a plan to modernize state government that will be a major step forward for improving taxpayer value, if approved, said Dominic Calabro, the president and CEO of Florida TaxWatch. The governor was bold and creative in producing this budget. Details will come out about how these changes will be implemented and more review is needed to fully understand these proposed reforms, but we commend the governor for the zero-based approach to budgeting and efforts to enhance accountability. We applaud the governor and his staff at the Office of Policy and Budget for their great work.The core needs of Floridians are taken care of by this budget instead of past prioritization of the need to grow government.

Reach Gray Rohrer at grohrer@sunshinestatenews.com or at (850) 727-0859. Reach Kevin Derby at kderby@sunshinestatenews.com or at (850) 727-0859.

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