Budget Cap Headed to House
March 16th, 2011 by flanewsA plan to cap state spending, start a budget saving account, and lower property taxes is fueling a partisan debate. Republicans say the measure would hold government accountable. Democrats say it would force deep budget cuts for schools and health care. As Whitney Ray tells us, voters will likely have the final say.
With the tea party at their backs and a budget crisis on their hands Republicans lawmakers are wasting no time pushing a state spending cap. The plan would keep the budget at the 2013-2014 level and tie increases to inflation and population growth.
Any money collected above that level will be put into a savings account to protect the state when times are tough, or used to lower property taxes. The idea is a top priority for a Senate President who wants to go to Washington.
“It’s about stability. People will know that the government spending will not increase faster than their ability to do paperwork,” said Florida Senate President Mike Haridopolos.
Senator Ellyn Bogdanoff ushered the plan through the state senate Tuesday.
“Less money in government means more money in the pockets of citizens and that’s a good thing,” said Bogdanoff.
But every reduction has its price. Advocates for the poor and sick say children and seniors will pay. Colorado passed a similar plan in 1992, but after it forced severe cuts to social services, lawmakers there limited part of the plan.
“There’s only certain areas that you can squeeze state general revenue out of the budget and those fall most heavily in the areas of health care and education,” said Karen Woodall, the Executive Director for the Florida Center for Economic and Fiscal Policy.
The plan now moves to the House, if it passes there, voters will be asked to decide in 2012.
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