Florida Budget Woes Wil Hurt Education

Florida economists performed a another review of the budget and incoming tax revenues. The news is the bledding hasn't stopped.

The frigid economy -- caused mostly by the housing slump -- will extend into next year, with the 2008-09 budget now forecast to have $1.5 billion less tax revenue than expected, economists said.

The downturn is unprecedented.

Florida will have less money to spend this budget year than it did in 2006-07 -- which in turn was less than the previous year's revenue totals. Back-to-back annual revenue declines have not been seen since the state organized its Revenue Estimating Conference to track the economy in 1971, Baker said.

The bulk of this year's $1 billion decline in anticipated dollars stems from a lowered forecast for sales- and real-estate-tax collections. Economists said existing home sales are now at monthly levels last seen in 1997, while spending for such items as furniture and appliances also has slowed.

The housing slump isn't going to end any time soon. The legislature is going to make more cuts. Education and social services are going to be affected. Governor Charlie Crist and the legislature aren't about to end the tax loopholes. Fair Tax Florida argues for internet taxes. Crist and the legislature will never pursue such an obvious cash cow. Their ideas involve toll roads and indian gambling revenue. Marco Rubio has expressed ideological reservations against the latter.

Florida will continue it's economic downward spiral until political leaders wise up or citizens vote for new leadership. Voter apathy and a bankrupt state government is the most likely scenario.