Thursday, March 6, 2008
Imposing a one-cent hike in Florida’s sales tax would make tough economic times even worse
Call it penny-ante tax relief.
The latest plan at the state Taxation and Budget Reform Commission calls for a one-cent increase in Florida’s sales tax. In exchange, the panel pledges to close selected loopholes in the current tax code and deliver new breaks to property owners.
Can you say “bait and switch”?
This newspaper has long supported the concept of closing some statutory loopholes that, inexplicably, give tax-free status to hundreds of items ranging from pricey stadium skyboxes to ostrich feed. By capturing more revenues, the state should be able to lower the overall sales-tax rate, not raise it. That’s the essence of true tax reform.
But the tax reform commission blurs its priorities by piling on property-tax breaks for selected homeowners in an attempt to offset what amounts to a $3.5 billion sales-tax hike.
One provision would lower the newly voter-approved 10 percent annual assessment cap on non-homesteaded properties to 5 percent. That reduction surely sweetens the pot for snowbirds, but it’s no deal for 18 million Floridians.
This kind of tradeoff doesn’t impress state Sen. Mike Haridopolos, who chairs the Senate Tax and Finance Committee and was instrumental in producing the Amendment 1 reforms that passed in January.
“It’s too easy to start backdooring tax increases, with property taxes creeping up again,” the Melbourne Republican told Scripps Treasure Coast Newspapers’ editorial board last week.
Indeed, the temptation to ratchet up taxes will be almost immediate. To sell the sales tax-property tax combo, Orlando economist Hank Fishkind calculated that the “average taxpayer” would come out $53 ahead under the proposal.
Really? Fifty-three whole dollars? For that kind of benefit, why go through these gyrations at all?
If Fishkind’s computations are correct, the sales-tax hike fails to generate appreciably more revenue, but a 17 percent increase in the base rate would hit low- and middle-income taxpayers disproportionately hard. In other words, the worst of both worlds.
Instead of pursuing a shell game that collapses at the bottom line, commissioners would do better to focus on another program already under review: the Taxpayer Bill of Rights. The so-called TABOR would cap how much cities, counties, schools and special taxing districts can spend by tying revenues to inflation and population increases. Only voters could waive the spending or revenue caps, and any new tax or fee also would have to get public approval.
Floridians deserve one clear, well-considered and equitable tax package from the reform commission, which has the authority to put recommendations directly onto the November ballot. As such, the panel must resist the temptation to haul out a smorgasbord of competing, even conflicting, schemes. A tax increase definitely should not be on the menu.
If the protections of a Taxpayer Bill of Rights were in place, Florida households would have enjoyed an average property-tax savings of $569 in 2006. That’s at least 10 times better than a market-killing hike in the sales tax.
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Reprinted from the TCPalm
Friday, March 7, 2008
Amendment would ensure lawmakers can set university tuition
Thursday, March 6, 2008
By BILL KACZOR
Associated Press Writer
TALLAHASSEE, Fla. (AP) -- A constitutional proposal that would ensure the Legislature, not an appointed board, can set tuition sailed through its first Senate committee Wednesday after lawmakers cast aside arguments it would politicize Florida's university system.
Besides making sure the Board of Governors can't set tuition, the proposed amendment also would again make Florida's education commissioner an elected position, abolish Florida's appointed State Board of Education and return its authority over primary and secondary schools to the governor and Cabinet. Until 2003 the governor and Cabinet, including an elected education commissioner, oversaw the state's schools.
The measure would undo constitutional provisions supported by two former governors, Democrat Bob Graham and Republican Jeb Bush.
Graham led a citizen initiative in 2002 that created the Board of Governors to oversees the 11 state universities. Graham and the board are suing the Legislature, claiming the panel, not lawmakers, have tuition-setting authority. The proposed amendment, though, would settle the issue regardless of how the courts rule.
"This new governance structure would clearly say that the decision on tuition is in the hands of the appropriators of the state's money," said Senate President Tempore Lisa Carlton, R-Osprey, who is sponsoring the measure (SJR 2308), which was before the Education Prekindergarten-12th Grade Committee.
Carlton said legislators can better balance the public's desire for low tuition - Florida has the nation's lowest - against the financial needs of the universities. Facing budget cutbacks, the board approved an 8 percent tuition increase in January without legislative approval.
University System Chancellor Mark Rosenberg argued against the proposal, which also would reduce the board from 17 to 8 members and cut their terms from seven to four years. He said it would hold universities "captive to political interests of the moment."
The board's size and terms are designed as a buffer against politics because a governor, who can serve only eight years, would be unable to appoint the entire panel until nearly out of office.
The committee also rejected arguments from Patricia Levesque, executive director of two foundations Bush has formed to advocate his education policies. She said having an elected commissioner would politicize education. Abolishing the board and giving its duties back to the governor and Cabinet will dilute the governor's power because he would no longer be the state's top education official, she said.
The measure, which passed unanimously, will be heard by the Higher Education Committee before it can go to the Senate floor. It's a top priority of Senate President Ken Pruitt, R-Port St. Lucie.
A similar proposal is to be heard Friday by the House Schools and Learning Council.
Graham said in an interview he was surprised by the proposal because "it seems to be a concession" the board has tuition-setting authority under the 2002 amendment.
The panel is similar to the Board of Regents the Legislature abolished in 2001 after it opposed two new medical schools favored by influential lawmakers. As a result, Graham said, "We became the most dysfunction university system in the country."
If you would like to share your thoughts on this subject please comment below.
Reprinted from the Associated Press
By BILL KACZOR
Associated Press Writer
TALLAHASSEE, Fla. (AP) -- A constitutional proposal that would ensure the Legislature, not an appointed board, can set tuition sailed through its first Senate committee Wednesday after lawmakers cast aside arguments it would politicize Florida's university system.
Besides making sure the Board of Governors can't set tuition, the proposed amendment also would again make Florida's education commissioner an elected position, abolish Florida's appointed State Board of Education and return its authority over primary and secondary schools to the governor and Cabinet. Until 2003 the governor and Cabinet, including an elected education commissioner, oversaw the state's schools.
The measure would undo constitutional provisions supported by two former governors, Democrat Bob Graham and Republican Jeb Bush.
Graham led a citizen initiative in 2002 that created the Board of Governors to oversees the 11 state universities. Graham and the board are suing the Legislature, claiming the panel, not lawmakers, have tuition-setting authority. The proposed amendment, though, would settle the issue regardless of how the courts rule.
"This new governance structure would clearly say that the decision on tuition is in the hands of the appropriators of the state's money," said Senate President Tempore Lisa Carlton, R-Osprey, who is sponsoring the measure (SJR 2308), which was before the Education Prekindergarten-12th Grade Committee.
Carlton said legislators can better balance the public's desire for low tuition - Florida has the nation's lowest - against the financial needs of the universities. Facing budget cutbacks, the board approved an 8 percent tuition increase in January without legislative approval.
University System Chancellor Mark Rosenberg argued against the proposal, which also would reduce the board from 17 to 8 members and cut their terms from seven to four years. He said it would hold universities "captive to political interests of the moment."
The board's size and terms are designed as a buffer against politics because a governor, who can serve only eight years, would be unable to appoint the entire panel until nearly out of office.
The committee also rejected arguments from Patricia Levesque, executive director of two foundations Bush has formed to advocate his education policies. She said having an elected commissioner would politicize education. Abolishing the board and giving its duties back to the governor and Cabinet will dilute the governor's power because he would no longer be the state's top education official, she said.
The measure, which passed unanimously, will be heard by the Higher Education Committee before it can go to the Senate floor. It's a top priority of Senate President Ken Pruitt, R-Port St. Lucie.
A similar proposal is to be heard Friday by the House Schools and Learning Council.
Graham said in an interview he was surprised by the proposal because "it seems to be a concession" the board has tuition-setting authority under the 2002 amendment.
The panel is similar to the Board of Regents the Legislature abolished in 2001 after it opposed two new medical schools favored by influential lawmakers. As a result, Graham said, "We became the most dysfunction university system in the country."
If you would like to share your thoughts on this subject please comment below.
Reprinted from the Associated Press
Senate Votes to cut $500 million from current budget
Thursday, March 6, 2008
By DAVID ROYSE
Associated Press Writer
TALLAHASSEE, Fla. (AP) -- State spending this year would be about a half billion dollars less than planned under a bill the Senate passed Thursday.
With Florida's economy in a tailspin and residents not spending money, incoming taxes are expected to be about 13 percent lower this year than what legislators initially expected to have when they wrote the budget last year.
Senators passed the $503.3 million reduction in the current year's approximately $70 billion budget to bring state spending in line with lower-than-expected tax collections.
The House passed its budget-cutting proposal a day earlier, although the two plans differ slightly. Those differences are expected to be worked out in talks that began Thursday.
Senators did change their cut plan slightly, shifting $2.5 million into the criminal justice budget that could mean prosecutors and public defenders won't have to take unwanted time off. The prospect of furloughs had been raised as lawmakers wrote the budget cut bill.
To avoid that cut, the Senate approved using money from various fines that are expected to be collected between now and the end of the year.
Sen. Victor Crist, who chairs the Senate committee that writes the criminal justice part of the budget, warned that when lawmakers start writing next year's budget, there will still be difficulties.
"This is a quick fix to help them get through this year's budget," said Crist, R-Tampa, who sponsored the amendment shifting the money.
The bill to make the cuts (HB 7009) passed 26-13, almost entirely along party lines, with Republicans in favor and Democrats against.
Democrats had urged that the state dig more deeply into its savings accounts to avoid deep program cuts and consider finding new sources of money - possibly including tax increases.
Republicans in control of the Legislature, however, oppose tax increases.
If you would like to share your thoughts on this subject please comment below.
Reprinted from the Associated Press
By DAVID ROYSE
Associated Press Writer
TALLAHASSEE, Fla. (AP) -- State spending this year would be about a half billion dollars less than planned under a bill the Senate passed Thursday.
With Florida's economy in a tailspin and residents not spending money, incoming taxes are expected to be about 13 percent lower this year than what legislators initially expected to have when they wrote the budget last year.
Senators passed the $503.3 million reduction in the current year's approximately $70 billion budget to bring state spending in line with lower-than-expected tax collections.
The House passed its budget-cutting proposal a day earlier, although the two plans differ slightly. Those differences are expected to be worked out in talks that began Thursday.
Senators did change their cut plan slightly, shifting $2.5 million into the criminal justice budget that could mean prosecutors and public defenders won't have to take unwanted time off. The prospect of furloughs had been raised as lawmakers wrote the budget cut bill.
To avoid that cut, the Senate approved using money from various fines that are expected to be collected between now and the end of the year.
Sen. Victor Crist, who chairs the Senate committee that writes the criminal justice part of the budget, warned that when lawmakers start writing next year's budget, there will still be difficulties.
"This is a quick fix to help them get through this year's budget," said Crist, R-Tampa, who sponsored the amendment shifting the money.
The bill to make the cuts (HB 7009) passed 26-13, almost entirely along party lines, with Republicans in favor and Democrats against.
Democrats had urged that the state dig more deeply into its savings accounts to avoid deep program cuts and consider finding new sources of money - possibly including tax increases.
Republicans in control of the Legislature, however, oppose tax increases.
If you would like to share your thoughts on this subject please comment below.
Reprinted from the Associated Press
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