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Governor unveils budget 2012

By James Call

http://stream.publicbroadcasting.net/production/mp3/wfsu/local-wfsu-996626.mp3

Tallahassee, FL – Florida Gov. Rick Scott's proposed state budget for the upcoming year increases money for schools but makes dramatic cuts elsewhere to pay for the extra funding. James Call reports Scott's plan includes cutting business taxes, closing some prisons and reducing state spending by about $3 billion.

The bottom line on the governor's proposed budget is $66.4 billion and is 4.6-percent less than the current one. Scott says the spending plan reflects his commitment to limited government and free-market principles. He says when developing it he kept three ideas in mind.

"First, focus on a commitment to education. We can insure that Floridians have the skills to get employment. Second, by reducing taxes and regulations we can create a competitive advantage for Florida businesses allowing them to grow and putting more Floridians to work. And the third is by embracing the competitive spirit and principals of limited government we can keep the cost of living low for Floridians."

Scott is finishing up his first year in office with a low approval rating among voters. A survey this month by the Public Policy Polling firm says 26-percent of respondents approve of his performance. The governor says he has spent the past year talking to Floridians who told him their two top priorities are education and jobs.

"And those two things as we all know are inseparable. Every person in our state should have an opportunity to receive a high quality relevant education so they have the skill and training they need to succeed. We know a highly skilled workforce is the foundation upon which Florida can grow its economy in the 21st century."

Finding more money for education required some creativity. Scott and Republican leaders of the Legislature say they intend to close a nearly $2 billion shortfall with spending cuts. To give schools a billion dollar increase Scott proposes cutting Medicaid by $1.8 billion, transportation by a billion, either closing or privatizing a handful of prisons and eliminating nearly 4,500 state government jobs.

"I was elected to make the tough choices. And not everyone is happy when you make the tough choices. And you know, difficult decisions are never easy."

Scott once ran the nation's largest chain of hospitals and says the state can find savings by cutting reimbursements to hospitals for taking care of Medicaid patients. Senate Democratic Leader Nan Rich criticized the plan saying the governor was finding money for schools at the expense of others. And education advocates noted Scott kept money for state universities nearly level and without any money to repair buildings. The legislature has cut spending four of the past five years and the universities are now saying it is becoming difficult to keep top-ranked researchers and teachers. Palm Beach Senator Joe Negron asked Scott's budget director Jerry McDaniel whether the governor's officer is concerned about a brain drain at state universities.

"I'll just give you an example because some time that makes it easier. Sally Haddad is a FSU professor very well regarded. She left FSU because she was recruited by Western Michigan University. I'm sure the Broncos in Kalamazoo is a great school. But I find it embarrassing as a Floridian that we are losing professors to Western Michigan University."

McDaniel replied that the governor's office believes there is plenty of money going to the university system. And analysts are trying to develop a way to measure whether the money is being spent efficiently.

Scott also wants to offer businesses a $34 million tax cut. He found $40 million for Everglades restoration and a$15 million for the land-buying program, Florida Forever.

The initial reaction by leaders of the Republican controlled Legislature to the governor's budget recommendation is positive. Senate President Mike Haridopolos said the Senate share's Scott's goals.

"I want to applaud the governor today for one putting forth a balanced budget without raising taxes once again and showing his support for education. I think his overall budget is very much reflective of what the senate will be pursuing this year as we move forward."

House Speaker Dean Cannon says Scott submitted a thoughtful recommended budget. The governor's proposal is the starting point for lawmakers who write the spending plan. They will return to Tallahassee January 10th for the start of a 60-day session with a state budget at the top of their agenda.