Florida is not alone in contemplating large spending cuts to offset revenues only slowly recovering from recession and the winding down of $150 billion of federal assistance to states from 2009?s economic stimulus program.

The Americano

Florida is not the only state that plans large spending cuts to offset a dramatic drop in revenues, but Governor Rick Scott, who won with the support of the Tea Party, on Monday gave concrete details on how he would accomplish it.

According to Reuters, Scott told a gathering of more than 1,000 Tea Party activists in Eustis, about 200 miles from Tallahassee, that he would cut $5 billion in state spending while slashing taxes. He said his proposal was aimed at closing a deficit of nearly $4 billion.

The governor’s proposal now goes to the Florida Legislature where Republicans have an overwhelming majority in both the House and Senate. Despite this, it is likely that Republican legislators have other ideas and will consider other ways of closing the deficit.

Scott, a Republican and a former healthcare executive, said he could save nearly $4 billion over two years by reforming Medicaid, the health insurance program for poor people. Reuters added that Scott also saw savings of $2.8 billion over two years through an overhaul of Florida’s relatively healthy state pension system.

The governor, who was elected in November, also proposed cutting taxes by more than $4 billion over two years. This would include a roll-back of corporate income taxes from 5 percent to 3.5 percent and reductions in property taxes.

Critics of the budget plan said it would cut nearly 9,000 positions from state payrolls and slash billions of dollars from spending on education.

“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,” Florida Democratic Party Chairman Rod Smith said in a statement.

According to Reuters, however, Florida is not alone in contemplating large spending cuts to offset revenues only slowly recovering from recession and the winding down of $150 billion of federal assistance to states from 2009?s economic stimulus program.

It said that the Center on Budget and Policy Priorities (CBBP) points out nearly all states are considering spending less in fiscal 2012 than they did in 2008. That was the last year before the recession devastated revenues.

According to the CBPP, 24 states project lower revenues in fiscal 2012 than they had in fiscal 2008. The think tank added in a report last week that not only have states not returned to their pre-recession fiscal health, but total proposed spending for fiscal 2012 could be more than 10 percent below 2008 inflation-adjusted levels.

In its story, Reuters said that governors and other leaders in New York, California, Texas and other states are eyeing deep cuts in spending in education and healthcare and very few, if any, increases in taxes as ways to balance budgets.

While the finances of Florida, the fourth-largest state in the country, are less distressed than many others, the state is the epicenter of the continuing U.S. mortgage crisis and it is struggling with record high unemployment, as it seeks to trim budget gaps amid dwindling revenues.

Scott’s budget proposal has Florida spending just under $66 billion in fiscal 2012 starting July 1 and $63.3 billion in fiscal 2013. The current fiscal 2011 budget totals $70 billion, including about $23 billion of general revenue spending, and was helped by federal stimulus funds that are running out.

According to Reuters, while leaders of the legislature agree government needs to reduce taxes and regulation, many say now may not be the time to provide tax cuts to businesses.

The Americano/Agencies

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