Last week, Governor Scott revealed his proposed budget for the upcoming fiscal year and announced a plan to reduce the state’s budget by nearly $4 billion in one year. As in years past, the projected estimates for the state’s budget show Florida will continue to see depressed revenues through fiscal year 2011-2012. What is in the Governor’s proposed budget?
by Lila Jaber on February 15, 2011
On Monday February 7th, Governor Rick Scott released his budget proposal for fiscal year 2011-12 and 2012-13 to the Legislature. Representatives from his office made numerous presentations to various committees of the House and Senate and the Governor announced his plans, called “The Jobs Budget”, in a press conference in Eustis, Florida. His proposed budget promotes the reduction of the size of State Government (8,681 positions eliminated), the merger or elimination of state programs and agencies, and corporate tax reductions in excess of $2 billion dollars.
Business friendly proposals within the Governor’s budget include reducing the corporate income tax from 5.5 percent to 3 percent in 2011-12 and from 3 percent to 2.5 percent in 2012-13. The rate cut will save corporations collectively $459 million this year and a little more than $1 billion in 2012-13. He also proposes to reduce unemployment compensation taxes by shortening how long Floridians can collect benefits and making it more difficult for them to be eligible. Scott’s office says that will save $630.8 million over two years.
The Governor’s proposed fiscal year 2011-12 budget is $65.9 billion and the fiscal year 2012-13 budget would propose to spend $63.3 billion. The state’s budget for the current operating year is $70.5 billion; the proposed budget represents approximately $4.6 billion and $7.2 billion in reductions, respectively.
To review the Governor’s budget, as well as economic outlook reports which guide the budget, click here. (link to: http://letsgettowork.state.fl.us/ )