Despite stocks tumbling Friday after a grim U.S. job market report, a Florida legislative panel next week is expected to sign off on some relatively good economic news.
The state’s Legislative Budget Commission, comprised of House and Senate members, will be asked Wednesday to accept a new economic forecast showing lawmakers should have enough cash next year to meet the state’s “critical and high priority” needs. That basically matches current year spending, along with anticipated growth.
Lawmakers also can comfortably build in a $1 billion budget reserve, according to the Long-Range Financial Outlook analysts will put before the commission.
The three-year forecast also doesn’t call for any revenue shortfall through 2015. It’s the first time economists have given lawmakers such an all-clear horizon since voters in 2006 approved creation of the long-term planning document.
A return of relatively steady tax collections — combined with deep budget-cutting by lawmakers last spring — is credited for the rosier outlook.
Gov. Rick Scott and the Republican controlled Legislature covered an almost $3.8 billion budget shortfall by cutting spending for schools, health and social service programs, and making government workers in the Florida Retirement System contribute 3 percent of their pay to the state pension plan.
Still, analysts also cautioned that the steadily softening economy could dim some of the dollar projections going before lawmakers next week.