Against the backdrop of a sign-making company in Jacksonville and flanked by supporters, including Jacksonville’s newly elected Mayor Lenny Curry, Florida Governor Rick Scott unveiled his “Florida First” Budget for 2016-2017. The budget actually represents an increase from previous years, $79.3 billion versus last year’s $77 billion. Gov Scott cited a projected budget surplus of $1.3 billion, a figure disputed by some economists who estimate the surplus at about $635 million dollars.
Highlights of the budget include about $1 billion in tax cuts and and his centerpiece Enterprise Florida, a $250 million incentive fund to lure businesses to Florida. This is a priority for Gov Scott, who has recruited mayors from across the state to enlist support and also to lobby legislators. Who will benefit from proposed tax cuts? The manufacturing industry could see ends to the manufacturing sales tax and the manufacturing income tax. Other tax cuts could come by lowering the commercial lease tax, extending the sales tax exemption on college text books and keeping the 10 day back-to-school sales tax holiday.As for spending, aside from the $250 million set-aside for Enterprise Florida, Scott is also proposing $20.2 billion for education, which averages to a record high of about $7,221 per student. Stated Gov Scott, “We’re going to direct the money to schools that do the best job”. He also proposed spending about $3.5 billion for agriculture and the environment, $3 billion for the Department of Children and Families and $4.9 billion for public safety.
The budget would eliminate about 864 state positions, the bulk of the losses in the Department of Health. Most of the positions eliminated are already either vacant or would be through attrition. Another reduction would come via an elimination of automatic increases in Medicaid payments to hospitals. Said Scott, “let’s look at where our hospital industry is. They are at record profits”.
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As this budget is only a recommendation to the State Legislature, there are already many objections, alternate recommendations and signs of what could be another very tumultuous legislative session. Senate President Andy Gardiner (R-Orlando), in reviewing the budget stated he would prefer to start with about $250 million in tax cuts and to restore some of the spending cuts. Scott spoke optimistically about his budget, pointing to tourism and the record high general revenue. “We’re clearly heading in the right direction.” The Florida state Legislature, as well as powerful lobby groups and county and citty governments, may have something to say about that.