PRESS RELEASE October 12, 2001

Tallahassee -- A new Cost Savers report from Florida TaxWatch provides lawmakers with a list of efficiencies and spending reductions that add up to more than $700 million. The watchdog group says its recommendations could go a long way toward solving Florida's budget woes.

"The Governor has rightly stated that everything should be on the table for discussion, but we believe spending reductions must come first," said Dominic M. Calabro, President of Florida TaxWatch. "We do not support an across-the-board 'meat-ax' approach to budget cuts. Program cuts should be targeted at non-essential programs. If broader cuts are needed, the Legislature should take care to look to administration first and, to the extent possible, avoid cuts in direct services or programs that measurably enhance people's lives and can save money over the long-run."

Florida's fiscal forecast already was stormy before the September 11th terrorist attacks struck a severe blow to Florida's economy. The last General Revenue Estimating Conference forecasted that the State's General Revenue receipts for the current budget year would be $673.2 million less than was anticipated and appropriated when the legislature crafted the budget. That forecast did not take into account the full effects of the terrorist attacks on Florida's economy. Further reductions in revenue estimates are expected when the Estimating Conference meets again October 15th.

The TaxWatch report identifies four basic approaches for coping with the shortfall: 1) raise taxes; 2) use the Budget Stabilization Fund; 3) reduce spending or, 4) a combination of the above.

"It is questionable policy at best to raise taxes in poor economic times when taxpayers can least afford it and economic recovery will be slowed," Calabro said. "With the questions the future holds, maintaining an adequate balance in the Budget Stabilization Fund would be prudent. The first and best option is sound spending reductions."

The Cost Savers report identifies 20 recommended cost-saving and productivity improvements worth $402 million. TaxWatch also recommends implementation of 370 achievements from the 1999 and 2000 Davis Productivity Awards competitions that could add nearly $304 million to the value of state services over the next three years. These are tried and proven efficiencies within the state government arena developed by innovative state workers who wisely used technology and operating procedures to save taxpayer dollars.

Florida TaxWatch uses the following criteria for identifying programs and spending as worthy of retention, elimination, consolidation, outsourcing or efficiency/effectiveness enhancement:

Whether the program is constitutionally or statutorily derived
Whether the program is duplicative
Whether the services or projects of the program could be more competitively provided via some other mechanism such as being contracted or privatized
Whether the program has an accountability mechanism
Whether the program is provided as efficiently or as effectively as possible.