PRESS RELEASE March 30, 2001

TALLAHASSEE -- Florida TaxWatch is urging lawmakers to keep sharpening their pencils as they struggle to meet the state's funding needs.

The second in a series of Cost Saver reports issued by the watchdog group today identifies cuts that could provide more than $250 million dollars to fund high priority initiatives. In January TaxWatch offered up to $669 million in cost saving and productivity improvement recommendations.

Florida TaxWatch hopes lawmakers will re-direct the funds to pay for vital state services and much-needed tax relief, not lower priority, parochial or special interest projects.

"Lawmakers are lining up to request billions of dollars for projects in their home districts, while at the same time proposing program cuts," said Dominic M. Calabro, President of Florida TaxWatch. "The focus should be on funding the core functions of government, and worthy reforms such as elimination of the counter-productive intangibles tax."

Rollback of the intangibles tax began two years ago after a Florida TaxWatch Task Force found the tax was a barrier to economic growth. The continued rollback is included in budget plans from Governor Bush and the House, but the Senate budget plan does not include this needed cut.

"We can't afford not to eliminate this tax," Calabro said. "Elimination is necessary to ensure our economy continues to grow in a sound, healthy and diversified manner."

Through the years and under numerous administrations, the Florida Legislature, Governor, Cabinet and state agencies have implemented Florida TaxWatch cost-saving recommendations worth over $6.2 billion dollars. These taxpayer savings translate into $1,062 per Florida household.