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Senate approves TABOR-type cap on government spending

Tuesday, March 15th, 2011 by Dara Kam

The Florida Senate approved a constitutional amendment that would cap government spending, a variation of the “Taxpayers’ Bill of Rights,” or TABOR, Colorado instituted in 1992 but repealed in 2005.

The so-called “Smart Cap” measure, sponsored by Sen. Ellyn Bogdanoff, limits future state spending to growth based on population and cost of living and constrains borrowing. Voters in 20 other states have rejected similar measures.

Opponents of the proposed amendment argued that the state constitution already curbs state spending by requiring a balanced budget and that the spending caps could harm the state’s most vulnerable in economic downturns like Florida is now experiencing. Lawmakers are struggling to slash at least $3.62 billion from last year’s budget.

The Colorado measure also capped local government spending increases, something not included in Bogdanoff’s proposal, and resulted in a dramatic decline in education and social services funding.

“We already have a revenue limit in Florida. We have repealed as much as $19 billion in taxes over the last 12 years. We simply don’t need an even more restrictive cap in the state constitution,” Senate Democratic Leader Nan Rich of Weston argued. “If you think we’ve had hard choices to make…over the past few years,
TABOR will only make it worse.”

But Bogdanoff insisted her bill is necessary to rein lawmakers in.

“We already have a cap in the constitution. But it’s not working. We need one that’s going to work better,” Bogdanoff, R-Fort Lauderdale, said. “This is not Colorado. We have learned from the mistakes of other states.
We didn’t want to repeat what they had done…If government takes less, the people have more. and I don’t know about you but I’m okay with that.”

The measure passed with a 27-13 vote. Two Republicans, Sens. Paula Dockery of Lakeland and Nancy Detert of Venice, voted against it; one Democrat, Sen. Bill Montford of Tallahassee, voted in favor.

The proposal is one of Senate President Mike Haridopolos’ top priorities. Haridopolos, R-Merritt Island, is running for U.S. Senate, and, if approved by the House, could join him on the November 2012 ballot if he wins what is expected to be a crowded GOP primary.

The House has not yet voted on the bill (SB 958). It would require 60 percent approval by voters to get into the state constitution if it makes it on the ballot.

TABOR tussle ahead

Thursday, March 3rd, 2011 by John Kennedy

With the Florida Senate poised to approve a strict state spending cap possibly as early as next week’s opening days of the legislative session, opponents are trying to marshal forces.

The League of Women Voters warns that the so-called Taxpayer Bill of Rights (TABOR) that Senate President Mike Haridopolos, R-Merritt Island, is looking to put before voters next year could doom Florida to years of inadequate financing of health and social service programs.

Critics say the state’s tough revenue picture is only going to get more brutal if TABOR is OK’d by voters.

“This is like telling people who are dying of thirst in the desert that they need to have flood insurance,” said Ben Wilcox, a league lobbyist.

Florida already has a revenue cap in the state constitution, approved by voters in 1994. But the latest proposal tightens it from being based on personal income growth to a new standard tied to population growth and inflation, while also limiting future borrowing.

It doesn’t apply to cities and counties. 

 Colorado approved the nation’s first TABOR in 1992, but later suspended it do to government cash-flow problems.  Haridopolos, a candidate for U.S. Senate, says TABOR is needed to restrain state government — especially when the recession eases and tax collections return to earlier levels.

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