Gov. Scott Unveils Two Year Budget Plan
TALLAHASSEE (CBS4) - Florida's governor broke with tradition in a couple of ways Monday when he unveiled his first budget recommendations.
Governor Rick Scott rolled out his ideas at a Tea Party rally in Eustis on how to slash $5 billion from the state's $70 billion.
"That level of spending was never wise and cannot be sustained. We will not increase taxes in Florida," said Scott.
"We're doing this for the sake of our children and our grandchildren," Scott said. "We've got to get our state back to work."
Scott said about 1.1 million Floridians are out of work and that "we can't have a government that runs wild with spending."
Scott compared the budget cutting process to "cleaning out the attic."
"You come across priceless things and odd things that you wonder about and it just doesn't fit," Scott said.
Scott also plans to save $4 billion from Medicaid by creating a "patient-directed system", of which he gave no details.
Tea Party member Jo Oliver said she supports Scott's plan even though it will probably mean a cut to her benefits, but she added 'we all have to sacrifice'.
"I know it will effect me, but if I stick to my vitamins and eating right, I'll do it," said Oliver who is on Medicare.
He also wants to renegotiate state contracts, reorganize and privatize some of state government agencies and get rid of some programs.
"By eliminating programs that are not core government functions, remember, we're going to go back to core functions, now a lot of it would be nice to have, we're going to go back to core functions, it will save us another $150 million dollars over 2 years."
Another break from tradition, Scott laid out a two plan instead of the typical one year plan.
Click Here For Details Of His Budget Plan
Scott has said his plan will include cutting business and property taxes by more than $2 billion in hopes of luring more businesses to the state. Scott said his plan calls for reducing "business taxes from 5.5% to 3.5% and phase it out by 2018. Over the next two years, we can cut $4 billion in taxes with zero cuts in state revenue for education."
"Let's start with the obvious: We can't spend more than we take in. We take in enough from hardworking Floridians. We don't need to take anymore," Scott told the cheering crowd. "Critics have said you can't cut taxes now. They are wrong. We will cut taxes now and they should cut taxes now. Things will not improve until we grow private sector jobs, not government jobs."
During his campaign last fall, Scott promised to create 700,000 additional jobs over seven years. Those jobs would be on top of about 1 million that economists expect to be created in that time as Florida's economy recovers.
Scott also has proposed saving the state nearly $3 billion over two years by cutting pension benefits for state workers, teachers and some local government employees and requiring them to contribute 5 percent of their salaries to the Florida Retirement System.
"We're going to do the same thing private companies do and require government employees to contribute 5 percent toward their pensions. We cannot ask Florida taxpayers to bear all the costs of government employees. We will save $2.8 billion over 2 years," said Scott.
Dana Hoffman, a retired teacher, said she grew more furious by the second as she listened to the governor's proposal.
"I think everyone knows there are not many teachers, police men, firemen, living in gated communities and living a life of luxury," said Hoffman.
He also said government spending will be closely watched.
"We will review all contracts over $1 million. This fresh approach will save the state $660 million over two years," said Scott.
"Budget also saves $500 million dollars in managing of state prisons. Save money in our state prison system. It's a lean budget that reduces state spending and reforms," said Scott
Legislative leaders have expressed skepticism about cutting taxes with a projected $3.6 billion to $4.6 billion budget shortfall. But Scott said his budget proposal will be balanced.
Scott wrapped up his speech with a familiar campaign theme as the cheering crowd came to their feet with a standing ovation.
"Join with me today as we set an example for the nation, that you can in fact shrink government, return tax dollars to their rightful owners, you can create an atmosphere that creates new and better paying jobs. Thank you for the opportunity here and lets get to work."
(©2011 CBS Local Media, a division of CBS Radio Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
