BRADENTON, Fla. - After reviewing general revenue income projections for the state's fiscal 2009 budget, Florida economists on Friday said preliminary figures indicate a potential deficit of $1.6 billion to $1.8 billion as the state's economy continues to plunge and home foreclosures soar.
Anticipating the bad news, Gov. Charlie Crist Thursday ordered state agencies to accelerate nearly $8 billion of construction projects - portions of which will be funded with debt - as part of an economic stimulus plan he called "Accelerate Florida: Extending Florida's Economic Horizons."
"I am directing the state agencies under my purview to start turning dirt on projects that have already been funded by the Legislature and to identify and remove any obstacles that might be hindering these construction projects from getting under way," Crist said in a statement. "My instructions represent an aggressive strategy for strengthening Florida's economy and thoroughly examining our options for the future."
While the governor's office provided no figures on the exact amount of debt to be sold for the economic stimulus plan, state Division of Bond Finance executive director Ben Watkins said the governor's financing plans would involve the sale of debt that has been authorized through the state budget process. The state typically does not actually sell debt until money is needed for construction, a process known as a "just-in-time delivery system." That means some debt could have been authorized in previous years, but hasn't been sold yet.
"If they accelerate construction, they'll need money sooner," Watkins said. "You may see some acceleration of existing borrowing plans in order to accommodate our just-in-time delivery system with respect to administering financing programs."
Watkins said he anticipated that most of the debt for the governor's initiative would be sold for transportation and education projects.
Crist ordered state agency heads to specifically accelerate construction in a number of areas, including work on road projects worth $4.2 billion this year. He also noted that during the past three years, the Legislature has set aside $4.8 billion for school, community college and university construction, including $1.5 billion this year alone.
Last Tuesday, Crist and his Cabinet - acting as the final authority on state bond issuances after debt service is appropriated by the Legislature - approved the sale of $1.27 billion of bonds. The largest authorization was $924 million of state Board of Education public education capital outlay bonds expected to be sold in various tranches.
Of that $924 million, the Cabinet authorized the immediate competitive sale of $200 million. All PECO debt is sold by the Division of Bond Finance.
Other debt to be sold under the governor's new initiative will finance the construction of new prisons and state buildings.
