Florida Puts Budget Cuts, School Funds and Gambling on the Table

BRADENTON, Fla. — Budget cuts, public education funding and raising revenue through expanded gambling are on the agenda as Florida lawmakers convene two months early this year because of redistricting duties.

Some of the same themes are playing out across the Southeast, where lawmakers in nine of the region’s 11 states are now in session. It’s also a major election year for most states.

After several years of cuts to public education in Florida, the 2013 budget will contain $1 billion in new funding, Gov. Rick Scott insisted in his second state of the state address Tuesday, kicking off this year’s legislative session.

“Floridians truly believe that support for education is the most significant thing we can do to ensure both short-term job growth and long-term economic prosperity for our state,” Scott said. “That’s why this session I ask you to continue your commitment to education. On this point, I just can’t budge.”

Scott, a Republican, is likely to receive continued support for his agenda because his party controls both legislative chambers.

The governor has proposed a $66.4 billion budget that reduces state spending by 4.6% over the current year. The spending plan recommends $217.2 million in new bond issuance for transportation projects.

Scott’s recommendations also include slashing nearly $2 billion from Medicaid, a proposal that already has received opposition from Democrats who say the number of uninsured Floridians is at the highest levels ever due to the recession and high unemployment.

Although the top two responsibilities of lawmakers during the 60-day session are approving a redistricting plan and implementing the budget, one of the most controversial issues is likely to be the push to approve several new mega-casino sites.

Florida, like New York and other states searching for new revenues without raising taxes or fees, has been courted by several major casino developers.

Last May, Genting Malaysia Berhad scooped up the bayfront property on which the Miami Herald newspaper sits along with adjacent land. Genting then unveiled plans to build a $3.8 billion development called Resorts World Miami.

An integral part of the Genting resort is a casino dependent on passage of a bill filed by Sen. Ellyn Bogdanoff, R-Fort Lauderdale.

The bill, which passed its first committee review this week, also opens the state to expanded gambling in other venues, such as horse and dog tracks where slot machines would be allowed.

The governor, in his address to the Legislature Tuesday, did not mention whether he would support expanded gambling.

The pro-business Florida Chamber of Commerce, whose issues have been backed by Scott during his first year in office, opposes the gaming proposals.

Only a few bond-related bills were filed in advance of Florida’s legislative session.

Two would potentially reduce the bonding obligations of the Florida Hurricane Catastrophe Fund and Citizens Property Insurance Corp., by downsizing both nonprofit insurers.

Another bill would recreate the Seminole County Expressway Authority, which was abolished during the 2011 legislative session along with several other expressway authorities that were deemed nonoperational.

However, the Seminole County agency had projects under consideration, as well as agreements pertaining to the $1.8 billion Wekiva Parkway toll road in central Florida that would complete a beltway around the Orlando area. The recreated Seminole expressway authority would issue bonds through the state Division of Bond Finance.

Like Florida, other states in the Southeast are exploring expanded gambling to raise revenue.

In Kentucky, known already for its horse racing and lottery, Gov. Steve Beshear wants to ask voters for a constitutional amendment legalizing casino-style gambling. Beshear, who won re-election last November, has said taxes on gambling could provide new revenue for education and transportation projects.

Georgia lawmakers began their annual session Monday and are reviewing how other states fared and increased revenues from video lotteries. Gov. Nathan Deal, who addressed the General Assembly on Tuesday, is not expected to support the expanded gaming effort.

Deal told lawmakers that his budget proposal would advocate education improvements. He also plans to seek bond authorization to finance a portion of the $615 million deepening of the Port of Savannah, and he will again seek legislative authority to use bonding for drinking water projects.

At least three states will consider measures that limit authority to issue bonds or use proceeds.

Kentucky lawmakers have filed bills proposing to amend the state constitution to limit the amount of appropriation-supported general obligation debt that could be outstanding. One bill proposes to limit the amount of debt outstanding to 5% of available revenues, while the other bill would place a 6% limit on the debt-to-revenue ratio.

Both bills allow the governor to determine an emergency exception that would require legislators’ approval. Any amendment would require approval from the state’s voters.

Kentucky’s session began Jan. 3 and runs through early April.

In South Carolina, a bill has been filed that would prohibit school districts from issuing general obligation bonds and using the proceeds for general operating expenses.

Another bill would require school districts to seek voter approval of bond issues only on general election ballots.

The South Carolina General Assembly’s session began Wednesday and runs through mid-June.

In Tennessee, lawmakers are considering a bill that would require any local government borrowing money or issuing bonds to seek the approval of the state funding board if the borrowing exceeds 10% of the local government’s assessed taxable value. The General Assembly began its session on Tuesday, and will meet through mid-May.

Four other Southeast states also began legislative sessions this month. Mississippi lawmakers began their annual session Jan. 3 and it runs through May 5.

In North Carolina, the General Assembly’s session runs from Jan. 4 through mid-July. Virginia and West Virginia lawmakers started their sessions on Wednesday and both states plan to meet through March 10.

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