Florida’s economists upped their forecast of revenues the state can expect in fiscal 2015 by another $95.7 million, bolstering Gov. Rick Scott’s plan to recommend $500 million of cuts in taxes and fees in his upcoming budget proposal.
The latest increase projects that revenues supporting the state budget are expected to increase by $965.2 million or 3.8% over the current year for a total of $26.28 billion, forecasters said Friday in a revision of previous general fund estimates.
In September, revenue estimating gurus projected that the state would have a windfall of $845.7 million to spend in the 2015 budget.
In the latest conference, the category showing the largest increase next year is the state sales tax, the primary source of income for the budget since Florida does not have a personal income tax. Sales tax revenue is forecast to increase another $135.5 million over the prior estimate to $19.5 billion.
“Florida’s improved economic forecast means we are in an even better position to give $500 million in taxes and fees back to Florida families,” Scott said Monday. “The improved economic forecast also means we will once again invest in critical areas like education, healthcare, and transportation infrastructure.”
Scott has not said publicly which taxes and fees he wants reduced in next year’s budget, but he also said that the improving economic forecast will allow the state to “hold the line” on tuition at colleges and universities for another year.
Business interests have urged Scott to continue cutting taxes that corporations and businesses pay, saying that would foster economic and job growth. The Florida Legislature’s annual session convenes March 4.
The new revenue projections provide additional evidence that Florida is experiencing economic recovery, said Senate President Don Gaetz, R-Niceville.
However, Gaetz said inaction in Washington, D.C., “is still the great unknown confounding Florida’s budget and economy.”
“In just a few weeks, the president and Congress will be forced to respond to the next self-inflicted budget crisis,” he said. “With so much of Florida’s economy tied to the defense sector and supply chain, and generally to consumer confidence, uncertainty in Washington is the black cloud hanging over an otherwise sunny outlook.”
In adopting the next budget, Gaetz said “the Florida Senate will hope for the best, but plan for the worst. Our budget planning will be cautious, our reserves will be adequate, and our spending will be conservative.”
Congressional budget conferees have until Friday to reach agreement on a budget deal.
If the deadline is missed it is likely that a stopgap continuing resolution will be necessary to keep the federal government running after Jan. 15.
