PRESS RELEASE November 1, 2001

TALLAHASSEE - - Florida TaxWatch today called on Governor Bush to veto the just-passed state-spending plan, and urged Bush to reconvene a second Legislative Special Session forcing lawmakers to properly address the necessary $1.3 billion needed to balance the state's coffers.

"Lawmakers have delivered a product that doesn't meet the high standards of sound fiscal stewardship and high public service," said Dominic M. Calabro, President of Florida TaxWatch. "Now Floridians are left with a budget that is questionably balanced and potentially obligates the state in recurring expenses without future recurring revenues to finance them."

Recent state economic forecasts show Florida facing a $1.3 billion deficit--$1.1 billion in recurring revenue and $200 million in a one-time revenue loss. To address this looming deficit, Governor Bush called for a Legislative Special Session, and urged lawmakers to take action and prepare Florida's budget to reflect the deficit. However, when lawmakers ended the Special Session earlier this week, only $778 million, or 70%, had been cut from Florida's $1.1 billion recurring General Revenue shortfall.

"Calling for Governor Bush to veto the just-passed budget is not a recommendation taken lightly," said Calabro. "Our recommendation developed from a serious and deliberative review of the budget lawmakers passed, and is supported by the TaxWatch volunteer leadership."

"Governor Bush is the only statewide public leader who has the necessary personal and constitutional powers to overcome petty politics and focus on a bipartisan and more unified effort to craft a fiscally responsible and programmatically sound state budget," said TaxWatch Chairman-Elect Steve Evans.

Prior to the start of the 2001 Special Session, Governor Bush outlined a set of shared principles to guide lawmakers, and advocated for "unity and shared sacrifices" in balancing the budget. Principles 1-5 called for:
Agreement on the size of the new budget,
Protection of Florida's highest priorities,
Wariness of obligating Florida to new government programs the state temporarily cannot afford,
No increase in taxes, and
Maximizing management efficiencies in lieu of eliminating critical programs.

"When you compare Governor Bush's guiding principles to the budget lawmakers passed - it simply doesn't match up," said Calabro. "Governor Bush called for high public service prior to the start of the Special Session. Had lawmakers put aside petty politics and worked seriously at legitimate and sound public policy compromises for a few more days, the budget may well have met the mark and been both fiscally responsible and politically responsive."

Among the $778 million in budget cuts that lawmakers passed are:
$117.8 million from public schools,
$106.6 million from the state university system,
$46.9 million from work-force development,
$37.5 million from community colleges,
$27.5 million by eliminating the citrus canker tree compensation program,
$22.5 million from the prescription assistance program for the elderly,
$20 million from transportation, and
$14.5 million from the Tobacco Pilot Program - a 40 percent cut that has saved taxpayers $1 billion in tobacco related illnesses.

"It's much easier to veto the budget and start afresh, than pick and choose line items to veto within a budget that doesn't meet the state's fiscal crisis," said Calabro.

In addition to calling for a veto, Florida TaxWatch is urging lawmakers to:
Not use nonrecurring revenues from the Working Capital Fund or the Budget Stabilization Act to reduce the $1.1 billion in the recurring revenue shortfall,
Incorporate cost savers, government efficiencies and innovations offered by Florida's Auditor General, OPPAGA, Florida TaxWatch, Davis Productivity Awards program, state agencies and others in the spending plan,
Make target tax relief from general revenues of upwards of $40 million immediately available to the airlines in exchange for accountable and contractual guarantees that they will get their fleets back in the air and increase passenger loads at levels commensurate with pre-September 11th, and
Actively coordinate with local and federal levels of government to implement a $20 million tourism advertising/promotion campaign designed to attract tourists back to Florida.

"The call of sound fiscal stewardship and high public service is something Florida taxpayers rightly deserve and should expect," said Calabro.