Take the money, forget the ideology (Miami Herald: Deathwatch List)

Miami Herald ^ | March 03, 2009 | Editorial Staff

[IbJensen]

OUR OPINION: With or without stimulus, Florida must reprioritize its budget.

Republican leaders in the state Legislature have correctly concluded that Gov. Charlie Crist's proposed 2009-10 budget, fattened up with $12.2 billion of President Obama's stimulus money, is no cure-all for what ails Florida. Majority leaders in the Senate and House are so concerned about the consequences of accepting a Democratic president's stimulus money that they are considering rejecting it.

They should rethink that idea. Florida faces a $5.5 billion budget shortfall. Tens of thousands of its people are losing homes, jobs, pensions and savings. Lawmakers should shelve the ideology, take the cash, spend it wisely and make the hard choices about Florida's financial future. The biggest decision involves retooling the state's economy to reflect the new global economic reality.

The reality is that our state cannot depend as heavily as it once did on tourism, agriculture and population growth to fuel its economy. The world has changed, and, with or without the stimulus package, Florida's economy must also be ready to change. Wealthy retirees now choose South Carolina, Costa Rica or Arizona over Florida. Brazil and Mexico compete strongly in agriculture. India uses its intellectual capital to great advantage.

Republican leaders worry that stimulus money will force decisions that conflict with their core principles, such as small government, low taxes and fiscal restraint. They worry that the stimulus will force more spending, fewer cuts and tax increases. The way out of the dilemma is to use the stimulus as it was intended -- for ready-to-go projects that create jobs and boost the economy -- while simultaneously making tough budget decisions that reflect the global economic reality.

For example: The state Constitution says that no more than 3 percent of recurring expenses can be funded with nonrecurring funds. Yet the stimulus money could cover as much as 12 percent of Florida's recurring expenses. The solution is to follow both the 3 percent mandate and the stimulus intent. This means finding other ways to make up for the revenue shortfall to pay for recurring budget expenses, something lawmakers have struggled to do with previous tight budgets.

Here's how to make up the shortfall:

• Overhaul Florida's system of sales tax exemptions, generating billions in new revenue dollars.

• Tax Internet services, something many states already do.

• Match other states' tax on cigarettes.

• Change the economic model to include more medical, manufacturing, high tech and other industries.

Lawmakers are in Tallahassee to make tough calls and do what's right for the state. They should try less politics and more problem solving.

[IbJensen]

Charlie is such a disgrace. The purchase of the Everglades property of the sugar industry giant in order to 'save the glades' was patently stupid.

He'll get his lunch pail and stand in line like a good little RINO.

[Rockingham]

What next from the Herald? Tell rape victims to relax and enjoy the experience?

[PogySailor]

I knew Jeb would be a hard act to follow. But Charlie has really been a diappointment.

[NoMarxist2010]

Tax Internet services, something many states already do.

• Match other states' tax on cigarettes.

Hey Miami Herald, lets tax newspaper columnists for every word they write about raising taxes.

Have you heard of CUTTING SPENDING????