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Balancing living standards PDF Print E-mail
Sunday, 11 May 2008

The Florida Legislature was very proud at the end of its session last week for approving the state’s 2008/2009 expenditure of $66.2 billion, without having to resort to raising taxes. At face value, that could be regarded as commendable. However, in order to balance the budget the state made drastic cuts of over $4 billion. Looking at these cuts it is apparent that many valuable social services have been eliminated so that the Legislators can be proud of not raising taxes.

The budget cuts 695 jobs, eliminates pay raises for all but state troopers, forces layoffs of teachers, nursing home and child welfare workers and affects hundreds of private businesses that perform work for the state.

But its is South Florida public schools that are among the biggest losers, losing $120 million out of $332 million across the state. As a result of the cuts, summer-school and after-school programs and the services reading coaches have been reduced. Meanwhile, there has been a six percent raise in state-owned college tuition fees. Moreover, as a late minute surprise the much anticipated one week tax-holiday that was originally approved for back to school shopping was chopped because the legislatures claimed that April’s sales tax revenue came in much lower than was anticipated.

Also lost in the budget cuts is the budget for the Department of Children and Families, which provides assistance to the poor for food (food stamps) and intervenes in matters of domestic violence (which is again on the rise) and child abuse.
Plus, support for nursing homes have again gone down with a cut of $163 million which is in addition to a cut of $75 million last year. As a result, it would not be surprising if some of the nursing homes are forced to close, causing hundreds of employees to be laid off.

There are also cuts in the budget for public defenders on whom the poor depend on for legal defense in courts.

Although the Republican majority in the Florida House was insistent that the severe budget cuts were inevitable because of Florida's falling tax collections, Democrats argued that the Republican lawmakers refused to look at alternatives like authorizing slot machines at dog and horse tracks around the state, or closing existing cooperate tax loopholes. Imagine, Democrats proposed a $1 per pack cigarette tax increase which was estimated to have raised $1 billion dollars, but the Republicans killed the bill.

Granted, the budget has areas that can be commended, like the new lost cost insurance plan , ‘Cover Florida,’ that will assist over 3.8 million Floridians to get health insurance and the approval of funds for the Magic City Children Zone in Liberty City, which will provide social-service programs to increase high school graduation rates, but the negative implication of the cuts outweigh the positives.

A good public budget is one that generates economic growth, not one that adds to the economic dilemma that is currently taking place. Perhaps because the Florida Legislature has a Republican majority, the budget is much too conservative. The more liberal approach would be to increase taxes, sale taxes, and save the vital jobs and service in public health and education. When more people are employed more money is available to be spent to shore up sales taxes.

Of course, people hate to pay taxes, but people also want vital public services, and the public coffers can only meet these services through the taxes they pay. In Canada, a country that is often referred to as the model for providing adequate social services to its citizens, these citizens pay a government sales tax (GST) of 15 percent. That is 15 cents in each dollar spent. There is very little complaint by Canadians in paying this sales tax, because services like public health and education are very good, and secure.

There is a significant percentage of Florida’s population that can easily afford to pay much more than the current six percent state sales tax. On the other hand, the effect to the poor of paying increased sales taxes could be averted if key goods and services, crucial to this class of consumers, are not taxed, or taxed at rates lower than the normal taxes.

It is wrong to perpetuate the act of depriving the people of this state’s vital social services such as those found in education, health and housing, while lawmakers exude pride that they have balanced the budget. How can there be pride in depriving the majority these social services, creating more unemployment and social hardships? Yes, these are difficult economic times, but it is critically important to balance the living standard of the citizens of the state, while balancing the budget.

 
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