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This link covers legislative special sessions since September 11, the regular 2002 session, and the two special sessions following the regular session.
Special Session 2001A: October 22-31, 2001
Two Possible Scenarios Prescribed by State Law for Resolving A Projected Budget Deficit and Putting Things in Perspective, September 2001
Since Florida's Constitution requires a balanced budget, what are Florida lawmakers' options when the state faces a projected budget deficit? This Budget Watch TaxWatch examines how a revenue shortfall forces mandated procedures to take effect to re-balance the state budget.
 Florida Must Continue to Be Open for Business, October 2001
September 11 created many challenges for the nation and dealt a serious blow to the economy. With less money than anticipated, Florida must address the current shortfall, by keeping Florida's 16 million residents and its tens of millions of visitors back in the business and hospitality of Florida.
Florida TaxWatch Offers Additional Ideas to Deal With Budget Shortfall, October 2001
TaxWatch offers in this Budget Watch more ideas to produce almost $400 million in cost savings and budget cuts in the face of a projected budget shortfall caused by a slowing economy and exacerbated by the terrorist attacks of September 11.
Special Session 2001B, November 27-December 6, 2001
A Clarion Call for Statesmanship of the Highest Order: Veto the Post-Session Spending Plan and Start Over!, November 2001
In this Briefing, TaxWatch calls on the Governor to summon a new Special Session at the earliest possible date to create a new spending plan that will allow Florida to get its fiscal house back in order and also to jolt Florida's tourism-dependent economy back on track.
Guiding Florida through Our Fiscal Storm: TaxWatch Offers $1 Billion Budget Cuts, November 2001
In our first November Briefing, TaxWatch called on the Governor to summon a new special Session at an early date. Now that he has done so, both he and Florida's Legislature will have to make some tough, but essential, budget decisions when they meet again on November 27, 2000. As anticipated, the recessing economy has continued its downward path since the tragedy of September 11. The state's economy, particularly the tourist industry, continues to be hard pressed.
Legislature Balances Budget With a Mix of Cuts, Trust Funds and Taxes, December 2001
The Florida Legislature just completed the second special session called to balance the state budget in the face of severe revenue shortfalls. This time it succeeded in doing what it could not do the first time - pass an appropriations bill that the Governor will sign. In this Briefing, TaxWatch documents the achievements of the Special Session.
2002 Regular Legislative Session, January 22 - March 22, 2002
Series on Tax Reform
Florida Joins the Streamlined Sales Tax Project: An Important First Step In Modernizing Florida's Tax System, August 2001
The first in a series of Special Reports on Modernizing Florida's Tax System looks at Florida's special, and possibly unique, vulnerability to recent major developments in the economy, in information technology, and in tax jurisprudence which, in converging, are opening great holes in the sales and use tax bases of all the states.
Note: Whereas this first special report was written prior to the regular session, it is included here because it is the first of the special reports in the series.
Florida TaxWatch Position Paper: Modernizing Florida's Tax System, February 2002
TaxWatch commends Senate President John McKay for his vision and courage in proposing sales tax reform. His initiative gives new life and a heightened visibility to the debate over how to modernize Florida's tax system. However, while an informed tax debate would be good for Florida and its citizens, there is little hope that this will happen in the climate of acrimony and sound-bite mentality that already has emerged over the McKay initiative. TaxWatch reviews the legislation and provides sound recommendations before undertaking this ambitious initiative.
A Tax on Services Does Not Belong in the Constitution, February 2002
In this fact-based, historic perspective on Constitutional Amendments, author Robert S. Goldman says the Constitution is not the proper vehicle for advancing the need for tax reform.
Florida Sales Tax Exemptions Overstated, February 2002
Author Cass D. Vickers carefully reviews the nearly $23 billion in exemptions cited in the 2001 Florida Tax Handbook. Vickers concludes the exemptions label is being misused to describe billions of dollars in transactions that the State is barred from taxing by the U.S. Constitution or by other controlling law or is simply not a transaction to which the sales tax was intended to apply.
Tax Reform Proposal's Claims Questionable; Revenue Neutrality: Just an Illusion?, February 2002
Revenue neutrality should mean that the new tax structure would raise the same amount of revenue as the old one during the same time period and under the same economic conditions. The Senate's tax reform proposal sets a different standard, limiting the revenue in the first year of the tax to the previous year adjusted for growth regardless of what the current tax would have been expected to raise. This Special Report shows the limits of the newest tax reform proposals.
Carefully Overhauling Florida's Tax System Over the Long Haul, March 2002
The 2002 Florida Legislature passed HJR 833, a major departure from Senate President John McKay's original vision of a tax overhaul. Now it is subject to voter approval of a constitutional amendment in November 2002. Nonetheless, the debate over how to best modernize Florida's tax system will be unending because Florida's economy and business climate must be in sync with the ever-shifting demands and uncertainties of the new global economy. In this Special Report, TaxWatch reviews what is next to occur in the process of Florida Tax Reform.
Other Issues
Legislation Should Result in Improved Driver License Services for Floridians, March 2002
Legislation being considered by the 2002 Florida Legislature could positively impact the driver license services Floridians receive by increasing the participation of tax collectors in the provision of those services. TaxWatch examines the legislation and makes recommendations on the issues.
House and Senate Take Different Approaches to Sales Tax Exemption Review, March 2002
As the 2002 Legislative sessions closes, one of the major differences between the House and Senate remains sales tax exemptions. Both chambers propose legislative review of exemptions, and while each chamber's plan is similar in concept, but also differ greatly. In this Briefing TaxWatch examines those differences.
New Sales Tax Exemption Review Proposal Has Serious Flaws, March 2002
After TaxWatch issued a comparison of the House and Senate approaches to sales tax exemption review, the House passed a Joint Resolution proposing a constitutional amendment that creates a joint legislative committee to review all exemptions (and exclusions of sale of services) from the sales tax. The proposal, to which Senate leaders have agreed, contains elements of both approaches. Florida TaxWatch finds serious fault with some of those elements.
2002 Legislative Wrap-Up, March 2002
The Florida Legislature went into the 2002 Regular Session with four things it really needed to get done. It finished the 60-day session accomplishing only one: legislative and congressional reapportionment. Left undone were the budget, a major rewrite of the education code and the creation of a cabinet-level Chief Financial Officer.
Special Session 2002D, April 2-5, 2002
Use of Non-Recurring Revenue to Fund Recurring Expenses An Impending Moment of Truth Facing Florida's Budget, May 2002
This Budget Watch provides a breakdown of recurring and non-recurring funds being used to balance the 2002-2003 fiscal year budget. TaxWatch's initial analysis shows that over-reliance on non-recurring funds is cause for concern.
Special Session 2002D, April 29-May 13, 2002
The Florida Legislature wrapped up its two-week special session, and finally finished the business at hand. Most importantly, they passed a budget for FY 2002-03. Legislators also rewrote Florida's school code and agreed on the duties of the new state chief financial officer position. They also passed a bill requiring that proposed constitutional amendments carry a fiscal impact statement.
The new state budget carries a $50.4 billion price tag. The conference "compromise" on the budget spends $750 million more than the budget the House passed, which was bigger than the Senate's. Only the Legislature could go into financial negotiations and come up with a result that is higher than either party's position going in.
The budget deal included passage of the corporate "piggyback" provision, which conforms state tax law to federal law. This allows Florida corporations to take the bonus depreciation deduction passed by Congress. For more information see Florida Should "Piggyback" Its Corporate Tax Code With the New Federal Economic Stimulus Provisions, April 2002.
The Legislature did not pass a sales tax holiday similar to the ones held the last four years. For more information see Sales Tax Holiday Provides Real Benefits to Consumers and Florida's Economy, May 2002.
Service First Update
The Service First state government civil service reform act, passed by the 2001 Legislature, substantially revises state recruitment, employment, reward and discipline standards and processes to modernize the state workforce and improve service delivery. No bills relating to Service First were enacted during the 2002 General Session. Budget issues reported in a previous Florida TaxWatch advisory and resolved during the just completed Special Session are:
Human Resources Outsourcing
Appropriated $30 million and authorized the Department of Management Services to contract with a vendor to provide a personnel information system for state agencies that includes handling the state's payroll preparation transactions.
"Broadband" Pay and Classification System
Substantially reduced the number of state employee pay and classification categories to increase managers' flexibility to manage and reward high performing employees.
Non-Recurring Lump-Sum Performance Bonuses
Authorized state agencies to award employee bonuses based on plans they previously submitted to and had approved by the Governor's Office of Policy and Budget. While Governor Bush requested $56 million to award bonuses for up to 35% of state employees, approved funding of $15 million likely will make bonuses available to not more than 10% of the workforce.
Tuition Waivers
After a one-year hiatus, full-time state employees again are allowed up to six credit hours of tuition-free courses per term at a state university or community college on a space available basis, provided that substantive legislation authorizing it becomes law during 2002.
Turkeys
The struggle to find funding for vital state services didn't keep Florida lawmakers from stuffing turkeys into the tight budget for fiscal year 2002-2003. A preliminary list of "budget turkeys" released today by Florida TaxWatch highlights nearly $300 million in projects that should have gone on the Governor's line item chopping block. In the preliminary analysis, TaxWatch researchers have identified 445 budget turkeys in the 2002-2003 budget totaling just over $297 million. That figure is close to last year's record turkey crop.
Lawsuit
Florida TaxWatch filed suit today in 2nd Judicial Circuit seeking to keep a proposed constitutional tax amendment off the ballot in November. Along with TaxWatch, the Florida Retail Federation, Eli Roberts and Sons, Inc. and Sandy Ballas are the plaintiffs in the suit opposing the proposed constitutional amendment. While the plaintiffs agree Florida's tax system is in need of reform, they take exception with the manner in which this proposed amendment attempts to accomplish that objective.
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