Monday, July 7, 2014

Is Florida a Failing or Winning State?

In 2011, facing a $3.6 billion budget deficit, GOP (Tea Party) Florida Rick Scott (above) and the Republican-dominated legislature knew some belt-tightening was in order. So they passed a cut in the local corporate and property tax rates (huh?) – a lot less than Scott wanted, but still a cut – while slashing the state’s educational budget by $1.35 billion (just as the number of school-aged children was accelerating), and depleting the support for medical costs for the poor (about a 12% reduction in Medicaid reimbursements). Pre-K education took a particularly hard hit. “Funding for the preschool voucher program has dropped by $294 per child in recent years to $2,383, one of the lowest rates in the nation.” Herald Tribune, March 3rd.
Living in Florida isn’t as cheap as it once was, but for a state that is noted for being a swing state in national elections, local politics has successfully imposed a gerrymandered redistricting that makes a fairly purple demographic reality occasionally reflect a bright red Tea Party hold on legislative and Congressional districts, often giving the far right more voting power per voter than any other segment. The signs are anything but subtle. “While the budget reductions may have been unavoidable, some faulted Scott's approach as too ideological. The governor announced his first budget - which included major corporate tax cuts - at a Tea Party rally held in a church in rural Eustis, saying state government had run ‘wild with taxes, regulations and excessive spending.’” Herald Tribune. Add some substantial tuition hikes at state colleges and universities, and you get a pretty good idea of local priorities.
With an economic recovery posting new revenue gains across much of the nation, Florida is now projecting a $1.2 billion budgetary surplus. And while there is a touch of  budget restoration in the air ($100 per pre-K student funding for example), Scott is more focused on expanding the tax cuts – which is fine if you do not depend on the state for any medical care or to educate your children, not so good if you do.
“The GOP governor wants to use a projected budget surplus to pay for nearly $600 million in tax cuts, including a rollback in auto registration fees enacted under former Gov. Charlie Crist [Democrat] five years ago. Crist is challenging Scott in the governor's race.
“Scott also wants legislators to revive a sales tax holiday for hurricane supplies as well as expand the back-to-school sales tax holiday from its current three days to 10 days… But Scott also has a long list of ideas for the other side of the ledger as well… He wants to boost state spending on tourism marketing by nearly 60 percent in an effort to attract 100 million tourists next year. Scott has proposed raising public school spending by nearly 3 percent for each student [they were cut almost 8%], although part of the increased money relies on a rise in local property values.” WTSP.com, March 2nd.
If getting government to reduce its role in public education and lower its support for those at the wrong end of the economic spectrum (a segment that is swelling) is your cup of tea, Scott’s application of Tea Party policies into daily life makes Florida your model for the future of a new fiscally-conservative America. While there are clear areas where state and local cuts are more than appropriate – such a getting real with state and municipal retirement benefits that exceed the ability to fund them – cutting direct services to the people who are supposed to be served might not be the best place to start. And while cutting corporate taxes might seem like a good idea to many, Florida’s rates are so low already that such reductions are nothing more than a gift to the wealthy… since such taxes are hardly a disincentive to companies to locate there.
As Scott’s standings in local polls are generally described as “lackluster,” will Scott’s very well-funded gubernatorial campaign be rich enough to push back against his opponent, former Governor Charlie Crist? It’s a simple choice, actually, since Scott’s continuation in office will clearly prioritize tax cuts over services, no matter how vital or basic those services might be.
I’m Peter Dekom, and it is always a matter of choice, but global competition pledges to eat countries unwilling to train future generations to perform higher level jobs.

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