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The Governor’s office is ordering state agencies to hold back 15 percent of their fourth quarter budgets. The quarter begins in April. The announcement was made yesterday just hours after reporters asked Governor Charlie Crist if he was anticipating any holdbacks.

“’Are you anticipating some form of announcement from you regarding additional holdbacks. Maybe as much as 15 percent,’ one reporter asked Crist ‘Not that I have been briefed on,’” Crist replied.

Governor Crist tries to distance himself from bad news. He’s remained optimistic about the state’s economic turmoil ever since he took office. Crist says the current 3.4 billion dollar budget hole can be filled with stimulus money.

Rural Gulf County hugs the coast 100 miles southwest of the state capital. Budget cuts were about to close several schools and 38 jobs were on the chopping block. But as Mike Vasilinda tells us, voters in Gulf county chose schools over lower taxes.

At 8.8 percent, unemployment in Gulf County, Florida is just above the state average.

This is a conservative place. George Bush carried the county twice and John McCain won here with 74 percent of the vote.

But with budget cuts about to close schools and cause 38 layoffs, voters here on Tuesday approved a hike in property taxes. Jeanie Day is one of 2400 people who said yes.

“Because we need the money to keep our schools like they are and the curriculum and the teachers and the sports,” Day said.

The vote was close. 54-46.

“The economy’s bad,” Ronald Mayhew said. “Everyone’s cutting back. The schools can do the same thing.”

Teacher Aimee Walsh says kids won in the end.

“I think, when it comes down to it, people really care about children and care about education,” Walsh said.
But Governor Charlie Crist says there is no statewide trend here.

“Well, maybe 2400 out of 20 million might be willing to do that,” Crist said.

But the superintendent who pushed the tax hike says state lawmakers should get a clue.

“We had Alachua County that passed a 1million increase. You’ve had Gulf county now pass a 1 million increase,” Tim Wilder, Gulf County superintendent said. “You’ve had Franklin County do a swap with 70 something percent of the vote. You’ve had Walton County do a swap with 80 something percent of the vote. So you’ve not had anybody get beat with this yet. Which tells me that people do care about education.”

The higher tax will expire in 4 years.

Higher college tuition rates are one step closer to reality. A legislative committee has given state universities authority to raise tuition 15 percent a year. As Whitney ray tells us, if you are counting on Florida prepaid or Bright Futures to cover the cost, think again.

Budget cuts are forcing state universities to drop classes and cut staff. Lawmakers are targeting students to stop the brain drain. A plan to allow universities to raise tuition 15 percent a year is gaining momentum in Tallahassee.

“We are one of the lowest in tuition and it’s not that we want our students to pay more because we feel like they’re not paying their fair share, it’s just that the money has to come from somewhere,” said bill sponsor Will Weatherford.

Some fear the increase would make college too expensive for lower income students. Bright Futures wouldn’t cover the tuition increase. Families with a Florida Prepaid Plan would have to buy extra coverage to make up the difference. Prepaid Tuition Founder Stanley Tate calls the tuition hike outrageous,

“It’s just outrageous and lower income people just won’t be able to afford it,” said Tate.

Student body leaders say the increase is needed because the quality of their education is suffering.

“It’s getting to the point where it is difficult not just to get the classes that you want, but to get the classes that you need to graduate on time,” said Chris Krampert with the Florida Students Association.

Opponents plan to buy newspaper and magazine ads to rally support. Lawmakers say they’ll work with prepaid board members to create new tuition investment options.

Prepaid Founder Stanley Tate says if lawmakers give universities the authority to raise tuition, the price of a prepaid plan would double by 2012.

State Democrats are calling on congress for universal health care.

Florida lawmakers are joining the Florida Alliance of Retired Americans to urge congress to act quickly. Nearly 4 million Floridians don’t have health insurance. State Senator Dave Aronberg said children are paying the price.

“Working people should be able to find a doctor for their sick child. Who could argue for that? Every family should have a family doctor and that’s what this is about. This is about making sure we control health care cost, because right now the health care system is dependant on emergency rooms’ for basic health care,” said Aronberg.

More than half of all people who filed for bankruptcy say medical bills drained their bank accounts.

Representative from Florida’s film industry are asking the state for a tax break. Movie moguls met with Governor Charlie Crist at the capitol Thursday.

Crist is asking the state legislature to approve 10 million dollars in incentives for the industry to attract more movie crews to Florida. More than 200,000 Floridians work in the film industry. State Representative Jennifer Carroll said if the state will give the industry a break, more jobs could be created.

“It is important for our legislators to see that if we just give another inch to the film industry with regards to the tax credit that could come about we can create so many miles moving forward for economic stimulus,” said Carroll.

While many Republicans are supporting more tax breaks for the film industry, some Democrats are opposing the plan. They say the state needs to look at all revenue sources to fill the state’s 3.4 billion dollar budget deficit.

Pressure is building on auto insurers in Florida to stop using credit scores to set auto insurance rates. Two bills to prohibit the practice are pending before state lawmakers, and as Mike Vasilinda tells us, the legislation got a big boost today.

In February, the insurance industry testified the use of credit scores was a better predictor of risk than how many tickets or accidents may be on your record.

What the industry couldn’t or wouldn’t answer for regulators was why.

CFO Alex Sink asked the same questions and came away dissatisfied with what she was told.

“Well that’s the same kind of BS that they gave me when they came to meet with me and that’s what I think it is,” Sink said. “They can’t explain themselves.”

Sink and her insurance consumer advocate are calling for an end to the use of credit scores completely in insurance rate setting.

Rep. Priscilla Taylor has one of two bills are pending before state lawmakers.

“Because in some cases, individuals are paying 75 to 80 percent for insurance who have no tickets, no violations, only because they have a low credit score,” Taylor said.

But auto insurers are sticking to their guns, saying people with good credit will pay more for insurance if credit scores aren’t part of the calculation.

“I can’t give you details of how the studies are done,” Gary Landry with the Florida Insurance Council said. “These are scientific studies that have been done repeatedly and these studies have shown those who manage their credit wisely are a better risk.”

In addition to legislation, insurance regulators are also considering a rule to prohibit credit scores from being part of the rate setting process.

Governor Charlie Crist unveiled a new web today designed to help people learn more about Stimulus cash flowing into the state. 

A link on the web site will explain what loans or credits are available to new home or car buyers, as well as every dime sent to cities and counties. The Governor says the site will help make sure the money is being spent wisely.

“Through Flarecovery.com, people will have the opportunity at their convenience, at their time of choosing, to review these federal dollars, how they’re spent, where they’re spent, what projects are included, how it helps their community, in any of the 67 counties across the state of Florida,” Crist said.

The site details time lines for applications and waivers to be filed to get the money. There’s just one hitch: State lawmakers have yet to approve the spending of any stimulus money and may not.

More than a thousand parents, teachers, and students rallied on the steps of the state capitol today. The group is asking lawmakers to eliminate tax exemptions, raise the cigarette tax and pass a temporary one cent sales tax to fund schools. As Whitney Ray tells us, the group brought 2.6 million pennies with them to support their call for change.

They came by the bus load, bringing boxes, buckets, and bags full of pennies. Parents, teachers, and students unloaded 2.6 million pennies near the capitol, one for every student in the state.

The group rallied in support of a temporary one cent sales tax increase to fund schools. Education funding has fallen four billion dollars over the last two years and lawmakers could vote to cut more. For many the rally is a last ditch effort to save jobs at their schools.

Polly Roper is the principal at an Orange County Elementary School. She has to cut 900,000 dollars from her budget.

“It’s horrible. I’m looking at people who have been at my school 25 and 30 years who are going to get cut because I might have to cut all my classified people,” said Roper.

Florida Education Association President Andy Ford said changing the state’s tax structure can’t wait.

“Not next year, not next session. Not after the next election. Not sometime in the future, but now,” said Ford.

But while the crowd cheered on new taxes for schools, legislative leader don’t seem poised to join in on the celebration. The 26,000 dollars worth of pennies are being donated to the Children’s Home Fund, a charity helping underprivileged youth.

Lawmakers will decide if a constitutional amendment giving Florida teachers a pay raise will be on the 2010 ballot.

Democratic lawmakers are pushing the amendment that would require teacher salaries to stay at or above the national average. Right now Florida teachers make about 47,000 dollars a year. The national average is 51,000. House Democrat Geraldine Thompson says the pay is driving teachers out of the state.

“We have teachers who live in Florida, but they drive to Georgia, they drive to Alabama to teach so they can make more money and that should not be the case,” said Thompson.

If the amendment makes the ballot it would need 60 percent voter approval to pass. Then schools would have until 2012 to raise teachers’ salaries.

Supporters of a controversial plan to spend state money to build a commuter rail rallied at the capitol today. Chamber of Commerce leaders from eight counties voiced their support for the CSX SunRail. Legislation to create the commuter rail would cost the state 850 million dollars. State Senator Lee Constantine said it’s a good investment.

“The question is now are we looking for an economic stimulus so we are not depending on the federal stimulus package, yes. This could provide jobs right away, this could provide transportation,” said Constantine.

Opponents of the SunRail take issue with a portion of the deal that allows victims to sue the state for accidents or deaths on the tracks.

State workers facing the uncertainty of five percent pay cuts, furloughs or outright firings spent the day walking the hallways of the state capitol talking to anyone who would listen. As Mike Vasilinda tells us, uncertain legislative action has many workers on pins and needles.

Bob Ruggiero spent the day walking the capitol hallways. Bob makes twenty-six thousand dollars a year working for the Department of Juvenile Justice in Tampa and says the last thing he says he can afford is a pay cut or a layoff.

“I have bills. I have a car payment, cable, mortgage, food bill, telephone,” Ruggiero said. “Any reduction in my salary would hurt.”

As the workers looked for sympathetic ears, Governor Charlie Crist said he’s hoping to avoid both tax hikes and layoffs by using stimulus money.

When asked if state workers should be worried, Governor Crist replied, “I would hope not.”
But CFO Alex Sink says some tax exemptions will have got to go.
“If somebody is paying 1,000 dollars to go to a Super Bowl game, they can afford an extra 60 bucks in sales tax,” Sink said.

There are a lot of ideas being tossed around and the only uncertainty is that what to do about taxes and state employees will dominate the next 6 weeks of the session.

The uncertainty has Sandra Graham of Stuart arguing that pay cuts won’t help her or the economy.
“It would not only hurt me, it would hurt the people who provide daycare for my children because I will no longer be able to afford to send them to daycare. I’ll probably lose my home,” Graham, a school board employee, said.

And while lawmakers may be able to brush off the union members, hundreds of parents and PTA members are coming with the same message Wednesday.

Senate President Jeff Atwater has already said some taxes or fees need to be increased to minimize damage done to the workforce, but counterparts in the state house are offering only budget cuts.

Hundreds of state, county and municipal employees rallied at the state capitol today, demanding that state lawmakers take a look at ending special interest tax breaks before considering pay cuts, furloughs or layoffs. Karen Woodall of the Coalition for Tax Competitiveness and Fairness says there are at least three things lawmakers could do to bring in billions of dollars.

“Currently, many Florida businesses are at a competitive disadvantage because of internet sales that are not taxed, multi-state corporations that do not pay taxes on profits made in Florida, and exemptions granted to certain businesses,” Woodall said.

State workers have already gone two years without a pay increase. Many are on food stamps and receiving other assistance.

Florida parents and teachers are bringing more than two point six million pennies to Tallahassee tomorrow. Each penny symbolizes a student in public schools. The idea is to graphically depict the teachers and parents push for a temporary three year, one-cent hike in the sales tax to fund schools. Florida Education Association President Andy Ford says the three year hike will buy time to fix the state’s tax structure.

“What this does is it buys us time to be able to seriously take a look at Florida’s tax structure because we have to modernize,” Ford said. “The system that is in place right now was created in the 1940s. Florida is a vastly different society today than it was in 1940s.”

Busloads of parents from around the state will bring their pennies to the capitol for an 11am rally on Wednesday.

Progress Energy customers will see some rate relief beginning with their April bills. In January, rates spiked by as much as 25 dollars for a thousand kilowatts. The increase was to cover increased fuel costs and the building of two new nuclear power plants. After public outrage, the company went to the state Public Service Commission today and asked for rates to decrease. PSC spokesperson Cynthia Muir says customers will see a fifteen dollar saving beginning in April.

“Progress does have a significant increase in their rates beginning on the first of the year, about a 24 percent increase in their rates,” Muir said. “The commission did hear a lot of complaints regarding that.”

Progress is the first company to take advantage of a 2006 law that allows companies to collect nuclear construction costs up front before a plant is ever built. Consumer advocates have been arguing that many customers will have moved or have died before the plant is finished.

The clock is ticking for the state to spend its cut of the federal stimulus money. Florida has 120 days to allocate half of the 1.3 billion dollars it’s receiving for roads. Critics are blaming the governor for slowing down the spending process, but As Whitney Ray tells us, most of the spending needs legislative approval.

Tuesday Governor Charlie Crist officially committed to spend the 13.4 billion federal stimulus dollars from Washington, but how that money will be spent is raising more questions than answers.

“’Do you need the legislature to actually write bills and pass them,’ asked a press corps reporter. ‘Well, we may,’ Crist answered. ‘Are you going to ask them to do that,’ the reporter asked. ‘We’ll see,” responded Crist.

House Democrats say legislative leaders won’t even tell them if they plan to accept the money.

“We can’t get a clear answer from the Republican leadership in the legislature whether they’re going to use any of the money,” said Representative Ron Saunders.

Critics say the Governor isn’t acting fast enough to spend the stimulus dollars. The state still hasn’t set up a website to outline where the money is going and road projects are still on hold.

Florida’s cut of the federal stimulus package includes 1.3 billion dollars to spend on road projects and the state already has 7 billion dollars in projects ready to go. Transportation lobbyist Doug Callaway said the state will use it or lose it.

“You have 120 days to use up 50 percent of that allocation. If you don’t, Florida or any other state, if they don’t use that, those dollars that they don’t use will be recollected back to Washington and redistributed,” said Callaway.

Some money, like dollars earmarked for unemployment and food stamps, will begin flowing soon. Spending on roads and schools still needs legislative approval. Governor Charlie Crist says the state will launch a website early next week showing how the stimulus money will be spent. Twenty-nine other states have already launched similar sites.