How should we balance the Florida budget?

[30ashopper]

A lot of folks are not happy with the service cuts the legislature is proposing. But I don't hear a lot of discussion on how we could avoid that and still balance the budget. I'm curious what people see as the solution.

A little recap: In 2009, we had a major shortfall in the budget that had already passed. To fill the gap, the legislature raised all sort of taxes and fees, cut some state services, and borrowed from misc. funds.

Details:

increases in traffic fines of $10 for every traffic ticket issued except for speeding tickets which went up by $25 and an elimination of an 18% discount on tickets for those enrolled in driver's improvement courses;
a suspension in the environmental land program saving $4 million and cancelling $250 million in bond sales;
a 10.5% cut in Medicaid payments to nursing homes and a tax increase on nursing homes;
a transfer of $400 million from a Rainy Day Fund, leaving about $250 million in the fund;
a $466 million cut in education spending, an option for school administrators to volunteer for pay cuts and limiting the severance of teachers and administrators to one year;
a 2% decrease in teacher's bonuses, saving the state $11 million;
a 4% cut in aid to state universities and community colleges for a savings of $157 million;
$700 million to be borrowed from a $1.2 billion endowment that invests money from tobbacco settlements for future use on healthcare programs;
a $9.9 million cut in the state's public/private tourism agency, Visit Florida;
a 5% cut in a program that helps people with developmental disabilities, including autism;
an $190 million cut in a program that helps pay for low and moderate-income housing;
an elimination of 1,400 state jobs; and
a $3.75 million decrease in funding for cancer, cardiovascular, stroke and pulmonary diseases.

Despite this, in 2010, we had another major budget gap. We recended some of the cuts above, and filled the enitre gap using money the federal government gave us from the stimulus.

In 2011, with stimulus funds gone, we now have a 3.6 billion dollar budget short fall. In 2010-2011 we spent about 70 billion. In 2011-2012, we only have around 66 billion (assuming we don't raise more taxes.)

So I'm curious, how would you fill the gap? The proposed 66 billion budget by Scott cuts700 million from education, requires government employees to contribute to their pensions and healthcare, lays off about 7000 government workers, closes a few prisons, and cuts Medicaid by about 1.5 billion.

All of these cuts have a lot of people up in arms. My question is this, how would you balance the budget without cutting the services you feel should keep their funding? What would you cut, and what taxes would you increase?

 

[Andy A]

Don't expect any cogent answers. Tightening your belt is not on many people's agenda.

 

[happy2Bme]

one good answer would be to immediately institute policy requiring that within 30 days a third-party, non-governmental consulting board (made up of a random selection of the State's most seasoned, successful, and renowned business and financial and non-profit agency professionals) would be enlisted to, within a following 30-day time period, (1) review the budget and red-tag questionable expenditures, and (2) produce and disseminate a detailed report of findings and recommendations to Florida voters. Florida voters would be given the ability to vote (American Idol sytle), within another 10-day period, whether to keep or cut the line item. Within 10 days of that time, the final budget would be reviewed and approved. Within 10 days of that time, the budget would be disseminated via email, followed up by hard-copy. This process would be initiated each year 90 days prior to when the final budget was required to be in-place (1 Oct, 1 Jan, etc.).

Now, that said, I fully expect that the odds of our government being able to make a decision on whether to institute such a straightforward process is probably as good as my having flying monkeys spontaneously erupt from by hiney......and, in concept, it is too straightforward.

 

[scooterbug44]

1) I would cut the benefits of every elected member of government.

All judges, politicians, etc. would be get 5% max of their salary paid to their pension - no more.

Per diems, travel expenses, and perks would be slashed.

2) I would tax politicians' campaign contributions - 10% of all donations/contributions (including to PACs) would go to pay off the deficit.

3) No tax cuts until revenue exceeds the budget.

4) Increase taxes on cigarettes, cigars, and junk food.

5) Use prison labor and opt-in service (instead of jail time for non-violent offenses) to grow food for schools, prisons, government cafeterias, to clean up our state, and to enforce ordinances.

6) Increase fines for parking, speeding, and texting.

7) Reduce the use of air conditioning and heat in all government buildings. It's an office, not a meat storage locker.

8) Reduce the amount paid out in lottery prizes

9) Tax overweight vehicles for the increased damage they cause to roads

10) 5 cent tax on all bottled water sold

11) 5 cent fee on every plastic bag

 

[GoodWitch58]

we discussed this to great length on another thread..
the common factor in almost all of what you posted is the social/human component to the most vulnerable.

We need to look at the perks given to the highest paid elected officials and employees;and some of the programs that are obviously ineffective; and those that have been outsourced and proven by audits to cost more than when they were done by government employees; "Taj Mahal" buidings to house judges...the list is long, but it takes political will and leadership to get past the greed and special interests that permeate Tallahassee...

From SB's #9 above, get rid of or heavily tax the double trucks that do so much damage to our highways.

 

[Bob]

state income tax....wake up the bluehairs

 

[scooterbug44]

From SB's #9 above, get rid of or heavily tax the double trucks that do so much damage to our highways.

I think those are a safety hazard, but I believe those vehicles already pay hefty road taxes/fees based on their weight.

I was referring to passenger vehicles over 6,000 lbs. Large SUVs, trucks, vans etc. that cause 2-3x more damage to roads, yet in many cases get tax breaks.

 

[Bob]

State income tax - Wikipedia, the free encyclopedia # Alaska ? no individual tax, but has a state corporate income tax. Like New Hampshire, Alaska has no state sales tax. Alaska has annual Permanent Fund Dividend for all citizens living in Alaska after 2 years (a reverse income tax).[citation needed]
# Florida ? no individual income tax, but has a corporate income tax (at a 5% rate). The state once had a tax on "intangible personal property" held on the first day of the year (stocks, bonds, mutual funds, money market funds, etc.), but it was abolished at the start of 2007.[citation needed]
# Nevada ? has no individual or corporate income tax. Nevada gets most of its revenue from gaming and sales taxes.[citation needed]
# New Hampshire ? has an Interest and Dividends Tax of 5%, and a Business Profits Tax of 8.5%. New Hampshire has no sales tax.[6]
# South Dakota ? no individual income tax, but has a state corporate income tax on financial institutions.[citation needed]
# Tennessee ? has a 6% tax on income received from stocks and bonds not taxed ad valorem.[7] In 1932, the Tennessee Supreme Court struck down a broad-based individual income tax that had passed the General Assembly, in the case of Evans v. McCabe. However, a number of Attorneys General have recently opined that, if properly worded, a state income tax would be found constitutional by today's court, due to a 1971 constitutional amendment.[8]
# Texas ? no individual income tax or corporate income tax. In May 2007, the legislature replaced the franchise tax with a gross margins tax on businesses (sole proprietorships and some partnerships were automatically exempt; corporations with receipts below a certain level were also exempt), which was amended in 2009 to increase the exemption level. The Texas Constitution places severe restrictions on passage of a individual income tax and use of its proceeds.
# Washington ? no individual tax, but has a business and occupation tax (B&O) on gross receipts, applied to "almost all businesses located or doing business in Washington." It varies from 0.138% to 1.9% depending on the type of industry.[9][10]
# Wyoming ? has no individual or corporate income taxes.[

 

[GoodWitch58]

I think those are a safety hazard, but I believe those vehicles already pay hefty road taxes/fees based on their weight.

I was referring to passenger vehicles over 6,000 lbs. Large SUVs, trucks, vans etc. that cause 2-3x more damage to roads, yet in many cases get tax breaks.

Don't kid yourself, these double and triple trucks get tax breaks too. I worked on some legislation on this a few years ago, and believe me, they don't pay anywhere near what it costs to repair the damage they cause. I don't have the specifics of the Florida legislation, but this gives a good summary:
Axles to Grind: Driving Questions About the Limits to Place on Trucks Traveling Our Roads

If the states were to spend the estimated $154 billion needed to repair the nations' bridges, they'd have to add another $53 billion to make them sturdy enough for LCV use. Prohibiting LCVs, the study says, could slash $20 billion from bridge repair and replacement costs nationwide.

Many states don't have adequate funds to correct existing highway problems and some sources think big trucks aren't paying their fair share for highway upkeep now. According to the 1997 Federal Highway Cost Allocation Study Summary Report, as a group "combination [vehicles] still only pay 90 percent of their cost responsibility, and the heaviest combinations may only pay 60 percent of their highway costs."

Unless trucking companies pay the increased costs to accommodate LCVs, those costs will be passed on to citizens in the form of increased taxes, special assessments, or construction bonds for highways.

I agree w/you that the SUV tax loophole should be closed as well.

 

[30ashopper]

Well so far I don't think anyone has come up with anything that would fill a 3 to 4 billion dollar hole. (Not even Bob succeeded since an income tax would require a Constitutional amendment.) One thing seems clear here - tax increases seem popular, but most of these appear to be aimed at areas where the poster would not be directly effected. I was waiting for someone to suggest a property tax increase - fair and evenly distributed among those who can afford lands. Apparently though hammering the lower classes with consumption taxes and niche taxing of private businesses is more popular. I'm not surprised.