BRADENTON, Fla. - Florida Gov. Charlie Crist on Friday proposed a $66.5 billion budget for fiscal 2010 that includes $2.5 billion of debt.
Calling it a bridge to better times, Crist recommended using $3.2 billion in federal stimulus money in the current fiscal year, and $4.7 billion in the fiscal 2010 budget, from the American Recovery and Reinvestment Act of 2009.
The state expects to receive $12.2 billion over the next three years from the federal economic stimulus measure, which is projected to create 206,000 jobs.
"Federal dollars received as a part of the American Recovery and Reinvestment Act of 2009 will serve as a bridge to better economic times," Crist said in a letter to lawmakers accompanying his budget. "Due to the challenging economic conditions we face, our state must make wise choices in order to balance the budget with available funds."
Crist proposed that the Legislature authorize $2.5 billion of bonds to finance roads, schools, environmental programs, the underground tank cleanup program, and prison construction.
If lawmakers agree with Crist's bonding recommendation, it would be the third-highest amount of debt they have authorized in the last 10 years. A growing number of Florida lawmakers oppose debt spending.
Crist's budget also relies on $137.5 million from the 25-year compact he negotiated with the Seminole Tribe of Florida, which has been struck down by the state Supreme Court. Lawmakers plan to take up the highly controversial issue during their 60-day annual session, which begins March 3.
In response to Crist's proposal, Senate President Jeff Atwater and House Speaker Larry Cretul warned that much depends on what state economists say in March about the level of revenues supporting the budget. Those revenues have declined month over month for two years, prompting budget cuts.
"Adding federal stimulus money to the Florida economy may help Floridians during these harsh economic times. However, the stimulus money cannot be seen as the only solution to balancing the state's budget," Cretul said in a statement. "We also need to consider how the spending decisions we make this year will affect future budgets."
Crist's financing plan includes $400 million of turnpike revenue bonds, $354.1 million of right-of-way acquisition bonds, $114.7 million of grant anticipation revenue vehicle bonds, $175.1 million of fixed-guideway bonds, $70.1 million of toll revenue bonds, and $130.2 million of infrastructure bank bonds.
For schools, his plan calls for $254.0 million of public education capital outlay bonds and $50 million of school and community college capital outlay bonds. For environmental programs, $300 million of debt would be for the Florida Forever bond program and $75 million for Everglades restoration.
Crist also proposes issuing $376.9 million of debt for prison construction and $226.9 million for the state's underground petroleum-tank cleanup program.
Because of the economic downturn, all three major rating agencies have placed a negative outlook on Florida's credit rating. The state is rated AAA by Standard & Poor's, AA-plus by Fitch Ratings, and Aa1 by Moody's Investors Service.
